BUILDING
“One City”
T HE COR POR AT ION OF T H E C I T Y O F
ANNUAL REPORT 2014 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2014 BRITISH COLUMBIA, CANADA
Table of Contents 3
INTRODUCTORY SECTION
65
STATISTICAL SECTION (UNAUDITED)
4 5 6 7 8 9 10 11 12 13 15 16 18 20 22 24 26 28 30 32
Message from the Mayor Message from the Chief Administrative Officer City of Port Coquitlam Organizational Chart Port Coquitlam City Council City Snapshot Economic Snapshot 2014 Highlights Giving Back Strategic Direction Letter of Transmittal Department Overviews Office of the Chief Administrative Officer Corporate Support Development Services Engineering & Operations Finance Fire & Emergency Services Human Resources Parks & Recreation Policing
66 67
35
FINANCIAL SECTION
Average Home Municipal Taxes and Utilities Assessed Values for General Municipal Purposes Population Estimates Estimated Household Costs of City Services for an Average Single Family Residence Property Taxes Levied and Collected Taxes, Major Levies and Other Government Collections Revenues by Source Building Permits and Total Tax Collection Expense by Function Expense by Object Capital Expenditures and Net Debt Per Capita Capital Expenditures by Source Surplus, Net Financial Assets and Debt Accumulated Surplus Summary of Major Statutory Reserve Funds 2014 Revenue 2014 Expenses 2014 Principal Corporate Taxpayers 2014 Permissive Property Tax Exemptions
36 44 46 47 48 49
Financial Statement Discussion & Analysis Auditors’ Report to the Mayor and Council Consolidated Statement of Financial Position Consolidated Statement of Operations Consolidated Statement of Cash Flows Consolidated Statement of Change in Net Financial Assets Notes to the Consolidated Financial Statements Schedule 1 – Statement of Operations by Fund
50 64
67 68 69 69 70 70 71 71 72 72 73 73 73 74 74 75 75
A Year in Pictures This report is printed on paper that is FSC certified and made from 100% post-consumer waste.
The City of Port Coquitlam would like to thank the photographers whose images brought life to the pages of our 2014 Annual Report.
T HE COR POR AT ION OF T H E C I T Y O F
ANNUAL REPORT 2014 FOR THE FISCAL YEAR ENDED DECEMBER BER 31 31, 2014 BRITISH COLUMBIA, CANADA
Prepared by the Communications Division in conjunction with the Finance Department
Budget and Financial Reporting Awards Canadian Award for Financial Reporting The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Canadian Award for Financial Reporting to the City of Port Coquitlam for its annual financial report for the fiscal year ended December 31, 2013. This is the City’s ninth consecutive Canadian Award for Financial Reporting. The Canadian Award for Financial Reporting program was established to encourage municipal governments throughout Canada to publish high quality financial reports and to provide peer recognition and technical guidance for officials preparing these reports. In order to be awarded a Canadian Award for Financial Reporting, a government unit must publish an easily readable and efficiently organized annual financial report, whose contents conform to program standards. Such reports should go beyond the minimum requirements of generally accepted accounting principles and demonstrate an effort to clearly communicate the municipal government’s financial picture, enhance an understanding of financial reporting by municipal governments, and address user needs.
Distinguished Budget Presentation Award The City of Port Coquitlam received a Distinguished Budget Presentation Award from the Government Finance Officers Association for its 2014 budget. The award represents a significant achievement by the City and reflects its commitment to meeting the highest principles of government budgeting. To receive this award, the City had to satisfy internationally recognized guidelines for effective budget presentation. These guidelines assess how well the City’s budget serves as a policy document, a financial plan, an operations guide and a communication device. Budget documents must be proficient in all four categories to receive this award. This is the 17th year the City has received this honour. The Government Finance Officers of the United States and Canada is a non-profit professional association serving 17,500 finance professionals throughout North America. The GFOA’s Distinguished Budget Presentation Award Program is the only national awards program in governmental budgeting.
2 ANNUAL REPORT 2014
INTRODUCTORY SECTION
3 CITY OF PORT COQUITLAM
Message from the Mayor Improving customer service has been a strong focus for the City of Port Coquitlam for several years. Our 2014 Annual Report theme, Building “One City”, reflects our efforts to strengthen our team in order to provide better service – whether that means cutting red tape, delivering services more efficiently, making it easier for citizens to participate, or reducing costs for our taxpayers. The intent of this work is a better experience for our customers – Port Coquitlam’s property owners, residents and businesses – in all of their interactions with the City. That was one of the major directives of the Mayor’s Task Force on Business Opportunities in 2012 and 2013, the impetus for much of our work in this area now. Residents may have noticed our efforts in a few different ways in 2014. For example, we made a point to encourage more public involvement in our 2014 budget, in part by mailing out budget information to each home for the first time. The result was 950 responses, a record number for us. We also took a hands-on approach to seeking out our citizens’ vision for a new Community Recreation Complex, by sending teams to engage people in grocery stores, at bus stops, at recreation centres and
other places in the community. That process captured close to 1,350 opinions. Behind the scenes, we sharpened our pencils and worked with staff to bring in a municipal property tax decrease – almost unheard of these days – of 0.21 per cent. We also kicked off a process of scrutinizing individual City services to look for ways to do things better. We call these reviews Continuous Improvement Assessments. These are just a few examples of how our work to create “one city” translates into better service to our customers and serves as a springboard for ongoing improvements. I’m very proud of what we’re building here, and on behalf of the City of Port Coquitlam, I’m pleased to share our 2014 accomplishments in this Annual Report.
Greg Moore Mayor
4
Council members had a behind-the-scenes look at the City’s services during PoCo at Work Week in May 2014.
ANNUAL REPORT 2014
Message from the Chief Administrative Officer When people think about city services – such as road improvements or a new playground – they often think of them as being delivered by the whole city rather than an individual department. As the “One City” theme of our 2014 Annual Report suggests, we’ve been taking a cue from this kind of thinking in the past year. Everyone’s heard the old adage “one hand doesn’t know what the other hand is doing.” For us, Building “One City” means that each hand not only knows what the other is doing, but both are working together to be more effective and efficient. For example, we’ve been taking steps to make sure employees who work with the public or out in the community are able to easily stay informed about City news, initiatives and key contacts. Some of the tactics we’re working on include giving employees business cards with key City contact information to hand out, providing video blog updates on City projects, posting breaking news on our staff intranet site, and creating a database with the primary department contacts and each department’s top frequently asked questions. So, for instance, if someone comes across one of our gardeners at a local park and asks about the status of the new Community Recreation Complex or what’s happening with a high-profile City road project, that gardener is able to provide the appropriate information source or contact.
Becoming a more cohesive, collaborative and connected organization will not only help us be more engaged and effective behind the scenes. It will also be felt by the entire community, through improved service and positive customer experiences.
John Leeburn, MBA Chief Administrative Officer
We’ll continue to make progress on building “One City” in the coming year, with a greater focus on collaboration and cooperation within and between departments. We’ll also be taking a close look at our customer service and identifying opportunities for improvements to our inspection and regulatory processes through our Continuous Improvement Assessments.
Staff development sessions are one of many ways Port Coquitlam is working to build “One City.”
5 CITY OF PORT COQUITLAM
Organizational Chart CITIZENS OF PORT COQUITLAM (RESIDENTS, PROPERTY OWNERS, BUSINESSES)
CITY COUNCIL
OFFICE OF THE CHIEF ADMINISTRATIVE OFFICER John Leeburn, BCOM, MBA Chief Administrative Officer
CORPORATE SUPPORT
DEVELOPMENT SERVICES
Robin Wishart Director
Laura Lee Richard, MCIP Director
Divisions: Communications & Administrative Services; Corporate Office, Information Services; Bylaw Services
Divisions: Building; Planning; Development Engineering
ENGINEERING & OPERATIONS
FINANCE
Kristen Meersman, P.Eng, MBA Director
Karen Grommada, CPA, CMA Director
Divisions: Operations; Transportation, Roads & Drainage; Engineering Projects, Mapping & Budgets
Divisions: Finance Services (purchasing, accounting, financial planning, payroll, revenue services); Common Services
FIRE & EMERGENCY SERVICES
HUMAN RESOURCES
Nick Delmonico Fire Chief/City Emergency Coordinator
Steve Traviss, CHRP Director
Divisions: Administration; Protective Services & Public Education; Operations & Training; Facilities & Training; Emergency Program
Functions: Benefits & Compensation, Occupational Health & Safety; Labour Relations; Recruitment; Training & Development
PARKS & RECREATION
POLICING (RCMP)
Barry Becker Director
Claude Wilcott Officer-in-Charge
Divisions: Recreation; Parks & Facilities; Parks Planning & Design
Contracted service
Municipal Auditors
Bankers
KPMG LLP
Toronto Dominion Bank
6 ANNUAL REPORT 2014
City Council
Port Coquitlam City Council 2014-2018: (left to right) Cllr. Glenn Pollock, Cllr. Brad West, Cllr. Dean Washington, Mayor Greg Moore, Cllr. Mike Forrest, Cllr. Darrell Penner, Cllr. Laura Dupont.
Elected every four years by the citizens of Port Coquitlam, City Council is a legislative body that provides leadership to the City’s government. Port Coquitlam City Council is committed to ensuring the priorities of local citizens guide its policies and decisions on civic matters such as land use and budgets for operations and capital expenditures. City Council is made up of the Mayor and six Councillors, all of whom are elected for four-year terms as of 2014. The Mayor chairs the Council meetings. Issues requiring a Council decision generally appear first before one of the standing committees of Council. These are the Community Safety Committee, Healthy Community Committee, Finance and Intergovernmental Committee, Smart Growth Committee, and Transportation Solutions & Public Works Committee.
These committee meetings, along with Council’s two regular meetings each month, are open to the public. Meeting agendas are available from City Hall or the City’s website (www.portcoquitlam.ca/council). Live and archived broadcasts of Council meetings may also be viewed through the same web address.
The contributions of Cllr. Michael Wright, who served on Council for 33 years, were recognized after he departed Council in December 2014. The City awarded Wright Freedom of the City and renamed a gallery space in Leigh Square Community Arts Village as the Michael Wright Art Gallery.
7 CITY OF PORT COQUITLAM
City Snapshot total land area 29.17 km2
incorporated March 7, 1913
located in the heart of Metro Vancouver, British Columbia
19 1 3
2014 DEMOGRAPHICS
58,000 people
271 hectares of parks & trails
3,261 business licences
21,500 private dwellings
GOVERNANCE City Council
WHAT PORT COQUITLAM IS KNOWN FOR Q
CHALLENGE
Historic downtown and small-town charm 7 members of Council provide leadership, set policies and establish budgets
Leader in waste management
PoCo Pride Hometown of Terry Fox
Using technology to engage citizens
Traboulay PoCo Trail
Family-friendly neighbourhoods
Structure Chief Administrative Officer Corporate Support Development Services Engineering & Operations Finance
VISION
Port Coquitlam is a happy, vibrant, safe community with healthy, engaged residents and thriving businesses, supported by sustainable resources and services. We strive to do it right by researching, planning, building and executing well-balanced solutions.
Fire & Emergency Services Human Resources Parks & Recreation
MISSION
Policing
8 ANNUAL REPORT 2014
Economic Snapshot CONSTRUCTION PERMIT VALUE
Total $ value – new construction Total $ value – improvements
BUSINESS STATISTICS 2010 2,785 2011 3,117
Number of business licences issued
$120 million $100 million $80 million
2012 3,204 2013 3,178
$60 million $40 million
Source: Bylaw Services
$20 million $0
2010
2011
2012
NEW CONSTRUCTION 2014: $117 MILLION Single family/ duplex ($12.7 mill)
Commercial ($17 mill) Industrial ($7.2 mill)
2013
2014
Single family/ duplex ($2.9 mill)
Commercial ($3.9 mill)
Multi-family ($153,000)
Institutional ($25.6 mill)
POPULATION AND DWELLINGS
Industrial ($5.9 mill)
Port Coquitlam 56,342 52,687 6.9
4,400,057 4,113,487 7.0
Total private dwellings 2011 Total private dwellings 2006
21,533 19,689
1,945,365 1,788,474
Population density per sq. km 2011 Population density per sq. km 2006
1,931.3 1,826.4
4.8 4.4
29.17
922,509.29
Land area (square km)
3000
$ General (730)
Home-based (703)
Out-of-town Gen. Contractor (640)
Manufacturing (236)
Professional Person (193)
Retail (171)
RESIDENT STATISTICS
BC
Population in 2011 Population in 2006 2006 to 2011 population change (%)
2000
Top sectors based on 2014 business licences
IMPROVEMENTS 2014: $13.6 MILLION
Institutional ($744,000) Multi-family ($54.5 mill)
2014 3,261 0 1000
Source: Statistics Canada 2006 and 2011 Census Note: Census population estimates are not consistent with municipal and regional estimates.
• 93% are Canadian citizens • 29% were born outside of Canada • 68% say English is mother tongue • Average no. of persons/family: 2.7 • 78% of homes are owned
• 90% at same address 1 year ago • 63% at same address 5 years ago
• 55% have some post-secondary education
AGE DISTRIBUTION Ages * Percentage distribution based on published totals, both sexes. Source: Statistics Canada 2011 Census.
All 0-14 years 15-24 years 25-44 years 45-64 years 65+ years
Male 28,035 5,115 4,240 7,655 8,435 2,605
Female 28,310 4,695 3,695 8,140 8,680 3,105
% Port Coquitlam 100.0%* 17.4% 14.1% 28.0% 30.4% 10.1%
% BC 100.0%* 15.3% 13.2% 29.0% 29.0% 13.5%
• Median household income: $72,563 • 66.2% are employed Source: Statistics Canada, 2011
9 CITY OF PORT COQUITLAM
2014 Highlights See the Department Overviews on page 15 for additional 2014 activities and accomplishments.
0.21%
Decreased municipal taxes by 0.21% for the average homeowner – the first decrease on record in Port Coquitlam.
Installed a new outdoor gym at Gates Park funded by a TELUS grant.
+5%
Purchased a new rescue engine custom-designed for Port Coquitlam.
Increased voter turnout in the municipal election to 26% in 2014 from 20.8% in 2011.
Developed a cost-effective ffeectivee solution to rising ng g bearr activity by designing gnning a wildlife-resistant lock occk forr residents’ wastee carts.
Moved the Community Recreation Complex project forward by collecting input from 1,350 people and beginning to develop the business plan and architectural concepts.
Launched a variety of online tools: • Biz Info Hub with business ess and development info. • PoCoWorks Job Board linking job seekers with employers. • MyPortCoquitlam for managing City bills and licences online. • PoCo Waste-Line app to view and manage waste information.
Expanded waste collection leccttio on services to multi-family -fam mily ly and business properties. pertties iees.
my
P rtCoquitlam
$
Won a 2014 Open fo for or Business Award and nd invested the $10,000 prize ze in business programs. mss.
PoCo Waste
A greenerr choicee
10 ANNUAL REPORT 2014
Giving Back Giving back is a way of life in Port Coquitlam, among the members of our community as well as our City employees.
COMMUNITY VOLUNTEERS Many volunteers and organizations work hard to make our community a better place. Because of their efforts, Port Coquitlam is a safer, healthier and more complete community, with an abundance of PoCo Pride: that special combination of community spirit and pride that is unique to Port Coquitlam. The City of Port Coquitlam provides opportunities for citizens to volunteer in all aspects of civic life, from assisting with recreation programs to serving as citizen advisors to City Council. Our website, www.portcoquitlam.ca/volunteer, features volunteer opportunities and online registration. Each April, in conjunction with National Volunteer Week, we honour and celebrate all volunteers in our community with our Volunteer Recognition Awards & Tribute and other events.
CITY VOLUNTEERS We’re proud of the charitable and volunteer work undertaken by City staff and Council members. Not a month goes by without some sort of office fundraiser, and many staff and Council members also volunteer in their spare time.
2014 United Way staff committee. • The City’s annual United Way campaign raised $17,097 through casual days, 50/50 draws, raffles and other fundraisers. • Staff raised $1,727 for causes such as the Terry Fox Foundation, the BC Children’s Hospital Foundation and SHARE Family & Community Services. Activities included Jeans Day, casual days and raffles.
Here are some examples from 2014: •
Port Coquitlam firefighters raised $36,555 and donated their time to support a variety of causes: · $16,000 for prostate cancer research and men’s health initiatives through Movember. · $5,220 for the BC Professional Fire Fighters Burn Fund through Christmas tree chipping and the Canada Day salmon barbecue. · $12,000 for Muscular Dystrophy Canada through a boot drive. · $3,335 for the BC Burn Unit through a slow-pitch tournament beer garden and cook shack. · Volunteered with the Terry Fox Hometown Run, BC Burn Camp, Rett Syndrome Walk and a blood drive for the BC Blood Bank.
11 CITY OF PORT COQUITLAM
Strategic Direction The City’s policy, operations and financial decisions are guided by the Corporate Strategic Plan – entitled Vision 2020 – along with City Council’s current priorities. Adopted in 2011, Vision 2020 outlines the community’s vision for the future and was built on a foundation of core municipal principles, best practices and public consultation.
The work of the City’s departments (described in the Department Overviews, page 15) is aligned with the following:
VISION 2020 STRATEGIC OUTCOMES Sustainable Future – Addresses financial health, environmental health, social health and sustainable services.
Sense of Community – Addresses community spirit, community inclusiveness/diversity and community health.
Council also sets priorities each year that guide the budget and delivery of City services. Since 2013, Council has directed staff to focus on three priorities that grew from Vision 2020.
Economic Strength – Addresses business
Targeting a few priorities at a time enables the City to meet its goals more effectively.
safety, parks/natural areas, waste management and utility services.
strength, employment, access/transportation and agricultural land.
Community Well-being – Addresses community
Strategic Service Delivery – Addresses staff productivity/effectiveness, transparency/public confidence and healthy work environment.
COUNCIL PRIORITIES Organizational Development – Develop the organization and increase employee engagement in order to improve customer service.
Infrastructure – Maximize the life of infrastructure assets (e.g. roads and buildings) and save for their replacement.
Community Recreation Complex – Plan for
Mission: Port Coquitlam is a happy, vibrant, safe community of healthy engaged residents and thriving businesses supported by sustainable resources and services.
a new Community Recreation Complex on 15 acres of City land in the downtown that includes the Port Coquitlam Recreation Complex and former works yard.
12 ANNUAL REPORT 2014
Letter of Transmittal 2580 Shaughnessy Street, Port Coquitlam BC, Canada, V3C 2A8 5FM t 'BY UBYFT!QPSUDPRVJUMBN DB
LETTER OF TRANSMITTAL May 25, 2014 Mayor and Council City of Port Coquitlam Continuous improvement continued to be a strong theme for our organization in 2014. As part of our efforts to do things more efficiently and effectively, Council created a Budget & Infrastructure subcommittee to the Finance & Intergovernmental Committee to review our budgeting process and to develop a more sustainable model for planning and funding infrastructure. The 2016-2020 Financial Plan will reflect the outcomes of these activities. Overall, the City’s work and finances in 2014 once again took direction from the Vision 2020 Corporate Strategic Plan and annual Council priorities. It is my pleasure to present to you the City’s Financial Statements and Annual Report for the fiscal year ending December 31, 2014. The purpose of this report is to publish an Annual Report pursuant to Section 98 of the Community Charter. Preparation and presentation of the Financial Statements (Statements) and related information in the 2014 Annual Report is the responsibility of the City. The Statements were prepared in accordance with Canadian Public Sector Accounting Standards. The City maintains a system of internal controls designed to safeguard assets of the corporation and to provide reliable financial information. Expenditures and revenues are analyzed daily by departments and finance staff and updates are provided to Council. City Council ensures management fulfills its responsibilities for financial reporting, budgeting, and internal controls and exercises its responsibility through approval of bylaws and policies at Council meetings; a review of variance reports and financial statements at the Finance and Intergovernmental (FIG) Committee meetings and discussions with the City’s auditors in a Closed FIG Committee meeting. The audit firm of KPMG LLP, appointed by Council, has expressed its opinion that the Statements prepared by management fairly present the financial position of the City, as at December 31, 2014, and the results of 2014 operations in accordance with Canadian Public Sector Accounting Standards. MUNICIPAL OVERVIEW The City provides a complete range of municipal services to local residents and businesses. Services include police, fire, water, sewer, transportation, planning, recreation and other programs benefitting the community. Where possible, services are cost-shared with other municipalities for cost-effective service delivery, including emergency communications, fire dispatch, and police services. The City relies on the Greater Vancouver Water District for our water supply, the Greater Vancouver Regional District for sewage disposal, and Metro Vancouver for co-ordination of common services with other municipalities.
www.portcoquitlam.ca
13 CITY OF PORT COQUITLAM
Letter of Transmittal Header
FINANCIAL OVERVIEW The City has taken a long-term approach to its finances for a sustainable future. This approach requires setting sufficient funds aside for replacement of assets consumed in the year as well as addressing the gap created from underfunding in prior years. As with many cities in the world, minimal funds were set aside in the past for the eventual replacement of our assets as they reach the end of their useful lives. Positive steps have been taken to address these future challenges, including the new Budget & Infrastructure subcommittee addressed earlier. Also, as shown in Note 14 - Restricted Reserves, funds are slowly collecting in longterm reserves to address the infrastructure gap. The Annual Report’s Financial Statement Discussion and Analysis section reports to stakeholders how the financial resources entrusted to the City are being managed to provide municipal services and infrastructure. Annual operations have remained constant in the year. Fire and emergency services, police protection, water supply, sewer discharge, development, recreation, parks, culture and other primary and support services were delivered to the residents and businesses in the City consistent with prior years, with minor adjustments for a change in demand and market conditions. 2014 capital expenditures were comparable to those in 2013. The City continues to see growth and development, in both established parts of the community and new growth areas such as the Dominion Triangle. In 2014, the City issued building permits for projects with a total value of $130.6 million – the highest value on record. Interest rates remain low and continue to affect City investment decisions and returns. As we look to the future, the challenge ahead is to continue to save for future infrastructure replacement, while keeping taxes sustainable and funding a new Community Recreation Complex. CONCLUSION City services provide the community with a quality of life that includes safety and protection, supply of essential services, a sense of community and economic sustainability. A long-term approach to the City’s finances will ensure these services will be available to the community in the years to come. In addition, following Public Sector Accounting Board recommendations to quantify the long-term financial needs of the City, and taking steps to fund these needs in the City’s reserves, has been an important step for the City in its goal to reach sustainability of city finances. Balancing affordability for the community today and tomorrow will continue to be our financial challenge. The annual financial statements will monitor our progress. Respectfully,
Karen Grommada, CPA, CMA Director of Finance
www.portcoquitlam.ca
14 ANNUAL REPORT 2014
INTRODUCTORY DEPARTMENT OVERVIEWS SECTION
15 CITY OF PORT COQUITLAM
16 ANNUAL REPORT 2014
Office of the Chief Administrative Officer The Chief Administrative Officer provides organizational leadership to all City staff.
KEY RESPONSIBILITIES • Direct and coordinate the activities of all departments. • Assist Council to establish the City’s vision, plans and priorities. • Oversee the development of revenue-generation initiatives and other strategic projects.
• Oversee the implementation of the City’s vision, plans and priorities by: · ensuring effective policies are in place and adhered to, and · providing leadership that enables an engaged and productive municipal workforce.
STRATEGIC OUTCOME OR COUNCIL PRIORITY
2014 PERFORMANCE MEASURES
Sustainable Future
• Maximized the benefit for the City when negotiating terms of a community-wide fibre optic project with TELUS and free wifi hotspot program with Shaw. • Worked with the Human Resources Department to implement a partnership with BCIT to offer its Associate Certificate in Leadership program onsite to City staff.
Strategic Service Delivery and Organizational Development
• Oversaw completion of the City’s first two Continuous Improvement Assessments to improve efficiency and effectiveness of the Fleet and Purchasing areas. • Reorganized department structure to achieve improved efficiency and customer service. • Strengthened the organization’s focus on employee development and engagement to create a healthy work environment and improve customer service.
Strategic Service Delivery
• Worked with Engineering & Operations Department to implement a number of successful revenue-generation initiatives related to waste management. These included expanding green cart collection for multi-family complexes and commercial properties, and converting homes with secondary suites to two 240L carts to maximize revenue through the Multi-Material BC contract.
STRATEGIC OUTCOME OR COUNCIL PRIORITY
2015 GOALS
Sustainable Future
• Oversee and participate in the new Budget & Infrastructure advisory committee’s in-depth review of the City’s capital planning and budgeting models. • Implement priorities from the revenue generation task force to help develop alternative funding sources for the City.
Strategic Service Delivery and Organizational Development
• Continue to oversee and support the Continuous Improvement Assessment process to improve efficiency and effectiveness.
For more information about the Office of the CAO, visit www.portcoquitlam.ca/CAO.
17 CITY OF PORT COQUITLAM
18 ANNUAL REPORT 2014
Corporate Support Corporate Support brings together services and functions that support the organization as a whole.
KEY RESPONSIBILITIES • Provide communications, legislative and administrative services. • Enforce City bylaws. • Provide technology and online services. • Manage Council meetings, City records and elections. • Manage City land holdings.
DIVISIONS • • • •
Bylaw Services Communications & Administrative Services Corporate Office Information Services
STATS & FACTS • • • • • • • • •
Website visits: 539,402 Total Facebook/Twitter followers: 8,680 Media release pickup rate: 80% Freedom of Information requests: 62 Bylaws processed: 39 IS customer support requests: 2,151 PCs replaced: 64 (22%) Business licences issued: 3,260 Dog licences issued: 4,334
STRATEGIC OUTCOME OR COUNCIL PRIORITY
2014 PERFORMANCE MEASURES
Sustainable Future
• Delivered solutions to bridge the gap between the old financial system and the new cloud-based system. • Secured sponsorship for City initiatives such as the PoCo Best Biz Awards, Volunteer Recognition Awards and BizAlley.
Sense of Community
• Increased voter turnout in the municipal election to 26% in 2014 from 20.8% in 2011 with a targeted voter engagement campaign.
Community Well-being
• Improved safety by forcing the demolition of a derelict house and homeless camps.
Strategic Service Delivery
• Improved dialogue with public by use of online surveys, which achieved 8001,000 responses on topics such as the budget, election and communications. • Improved staff access to key business data through customized dashboards. • Improved online outreach through design and content update of key areas of website and rollout of PoCo Waste-Line app, Biz Info Hub, PoCo Works Job Board and MyPortCoquitlam programs. • Sent City Council members “undercover” during PoCo at Work Week in May to give them a behind-the-scenes look at City services.
STRATEGIC OUTCOME OR COUNCIL PRIORITY
2015 GOALS
Sustainable Future
• Review agenda processes to reduce paper consumption.
Sense of Community
• Engage the community in developing a new City slogan to strengthen Port Coquitlam’s identity and branding. • Update the City Info Guide to improve awareness of and access to City services by residents, business and visitors.
Strategic Service Delivery
• Work on a mobile app to help residents access a variety of City services.
For more information about Corporate Support, visit www.portcoquitlam.ca/CS.
CITY OF PORT COQUITLAM
19
20 ANNUAL REPORT 2014
Development Services Development Services guides the growth and development of the community.
KEY RESPONSIBILITIES
DIVISIONS
• Foster and provide guidance on sustainable and integrated land use and development. • Promote economic development. • Review permit and subdivision applications and conduct inspections within the framework of the BC Building Code, Land Title Act and municipal regulations. • Liaise with the Kwikwetlem First Nation, Port Coquitlam Business Improvement Association and Tri-Cities Chamber of Commerce.
• Planning • Building (including Plumbing) • Development Engineering
STATS & FACTS • Planning applications processed: 58 • Engineering development applications processed: 657 • Building permits issued: 327 · Construction value: $130.6 million · Number of new dwelling units: 432
STRATEGIC OUTCOME OR COUNCIL PRIORITY
2014 PERFORMANCE MEASURES
Community Recreation Complex
• Planned for a new community recreation complex that will create a vibrant community hub to replace an aging facility; managed an inclusive public consultation process.
Sustainable Future
• Led public consultation processes and collected information for the East of Fremont and Cedar Drive Route Study.
Economic Strength
• Received an Open for Business Award from the BC Small Business Roundtable for the City’s support of local businesses. • Improved access to information for businesses and developers with a comprehensive online Biz Info Hub. • Issued building permits for projects valued at over $130 million, one of the City’s highest ever values.
Strategic Service Delivery
• Increased efficiency of building inspections through mobile technology.
STRATEGIC OUTCOME OR COUNCIL PRIORITY
2015 GOALS
Community Recreation Complex
• Continue planning and design of a community recreation complex to replace the Port Coquitlam Recreation Complex and create a vibrant community hub.
Sustainable Future
• Begin comprehensive updates of the Official Community Plan and other bylaws. • Complete the Housing Action Plan and begin public consultation.
Economic Strength
• Promote businesses through a searchable Biz Directory, PoCo Best Biz Awards and BizAlley showcase at the May Day Festival, in conjunction with Communications.
Strategic Service Delivery
• Define enforcement and other policies and amend regulations to serve customer needs and meet community expectations. • Introduce mobile technology to engineering inspections to improve efficiency.
For more information about Development Services, visit www.portcoquitlam.ca/development.
CITY OF PORT COQUITLAM
21
22 ANNUAL REPORT 2014
Engineering & Operations Engineering & Operations provides and maintains essential municipal services and infrastructure.
KEY RESPONSIBILITIES • Manage/maintain municipal infrastructure, including roads, sidewalks, water/sewer/storm pipe networks, pump stations, dikes, streetlights and traffic signals. • Plan and operate the City transportation network. • Maintain/develop the PoCoMAP geographic information system. • Provide garbage, green and recycling collection. • Provide engineering customer services. • Manage the City fleet.
DIVISIONS • Operations • Transportation, Roads & Drainage • Engineering Projects, Mapping & Budgets
STATS & FACTS • Public requests and inquiries: 5,063 • PoCoMAP public visits: 18,950 • Waste collection: · Single-family units: 13,746 · Multi-family units: 4,642 · Institution or business: 238 • Waste diverted from landfill: 63.3% diversion rate • Water supplied: 8.9 million cubic metres • Capital projects: 40 projects and $8.38 million in expenditures • PoCo Waste-Line registrants: 2,822
STRATEGIC OUTCOME OR COUNCIL PRIORITY
2014 PERFORMANCE MEASURES
Sustainable Future
• Promoted the new Multi-Material BC recycling service, proper waste-sorting and expanded waste collection for multi-family sites to reduce waste disposal costs.
Community Well-being
• Developed a cost-effective waste-cart lock to protect against bears while minimizing the impact on residents.
Strategic Service Delivery
• Launched the PoCo Waste-Line smartphone app, which improves resident access to waste collection information and schedules. • Implemented an in-house project design team to better manage engineering infrastructure projects and reduce reliance on consultants. • Developed and maintained a stand-alone version of PoCoMAP to support the Emergency Operations Centre.
STRATEGIC OUTCOME OR COUNCIL PRIORITY
2015 GOALS
Sustainable Future
• • • •
Review garbage, green and recycling collection services. Market City waste collection services to multi-family properties. Purchase City street sweeper to improve efficiency. Support Council’s Budget and Infrastructure Committee in developing a new long-range capital planning model.
Economic Strength
• Advocate for Port Coquitlam in TransLink’s Northeast Sector Area Transit Plan, including integrating bus service with the Evergreen Line.
Community Well-being
• Roll out new City bear-proof waste cart locks to areas with high bear activity.
For more information about Engineering & Operations, visit www.portcoquitlam.ca/EO.
23 CITY OF PORT COQUITLAM
24 ANNUAL REPORT 2014
Finance Finance provides financial services to citizens, City departments and City Council.
KEY RESPONSIBILITIES • Provide financial planning, accounting, payroll, purchasing and revenue collection services. • Administrate operating funds. • Coordinate risk management (insurance).
DIVISIONS • Finance Services · Purchasing · Accounting · Financial Planning · Payroll · Revenue Services • Common Services
STATS & FACTS • • • • •
Annual budget: $93 million Billing and collection value: $76 million Tax customers: 19,914 MyPortCoquitlam registrants: 1,215 Electronic Home Owner Grant applications: 7,440
STRATEGIC OUTCOME OR COUNCIL PRIORITY
2014 PERFORMANCE MEASURES
Sustainable Future
• Began a major upgrade to a cloud-based financial management system to replace the previous outdated system.
Sustainable Future and Infrastructure
• Continued to set aside 1% of property tax revenue for future infrastructure replacement.
Strategic Service Delivery
• Earned Government Finance Officer Association awards for budgeting and annual financial reporting. • Completed an in-depth evaluation (Continuous Improvement Assessment) of Purchasing to seek opportunities to improve. • Worked with the Communications Division to achieve a record level of public feedback on the 2014 budget (almost 950 responses). • Launched MyPortCoquitlam, enabling residents to receive and manage City bills and licences online.
STRATEGIC OUTCOME OR COUNCIL PRIORITY
2015 GOALS
Sustainable Future
• Continue to implement the new cloud-based financial system.
Sustainable Future and Infrastructure
• Assist in the new Budget & Infrastructure advisory committee’s in-depth review of City’s capital planning and budgeting models.
Strategic Service Delivery
• Earn Government Finance Officer Association awards for budgeting and annual financial reporting. • Continue to promote the MyPortCoquitlam system for improved online access to City bills and licences.
For more information about Finance, visit www.portcoquitlam.ca/finance.
25 CITY OF PORT COQUITLAM
26 ANNUAL REPORT 2014
Fire & Emergency Services Fire & Emergency Services provides for the preservation of life, property and the environment in Port Coquitlam.
KEY RESPONSIBILITIES • • • •
Provide life safety and fire protection services. Conduct fire investigations. Provide public education programs. Develop and implement the City’s Operational Emergency Response Plan. • Deliver public emergency preparedness education and awareness.
DIVISIONS • • • • •
Administration Protective Services & Public Education Operations & Training Facilities & Training Emergency Program
STATS & FACTS • • • • • • • •
Total calls: 3,642 Total fires: 121 Hazardous materials calls: 84 Medical calls: 1,923 Motor vehicle accidents: 327 Public service/assist: 148 Fire bylaw inspections: 2,658 Emergency preparedness course attendees: 474 • Emergency preparedness volunteer hours: 1,711
STRATEGIC OUTCOME OR COUNCIL PRIORITY
2014 PERFORMANCE MEASURES
Sustainable Future
• Conducted succession planning to ensure future leadership for the department.
Community Well-being
• Continued to reduce emergency response times, with a total reduction of 57 seconds since 2012 despite annual call volume increases of between 6% and 8%. • Conducted rail and wildfire planning exercises.
Strategic Service Delivery
• Designed and purchased a new rescue engine that is lighter-weight and less expensive to operate than larger engines.
STRATEGIC OUTCOME OR COUNCIL PRIORITY
2015 GOALS
Strategic Service Delivery
• Restructure the fire inspection process to make it more efficient and user friendly. • Review a workplace option for fire-specific software. • Initiate a tender process for new apparatus to ensure proper apparatus is in place for timely response. • Work with Human Resources to complete the IAFF Local 1941 Collective Agreement for firefighters.
For more information about Fire & Emergency Services, visit www.portcoquitlam.ca/fire.
27 CITY OF PORT COQUITLAM
28 ANNUAL REPORT 2014
Human Resources Human Resources provides specialized advice and assistance in all facets of people management.
KEY RESPONSIBILITIES • Champion City-wide initiatives that build on a positive and engaging organizational culture. • Recruit City staff and ensure succession planning. • Manage the City’s labour relations. • Coordinate the City’s occupational health and safety program. • Plan and implement staff training and development. • Administer benefits, wages and salaries.
STATS & FACTS • Total number of employees: 546 (289 full-time, 72 part-time, 185 casual) • Average employee age: 38.42 years · Casuals: 27.46 · Part-time: 35.94 · Full-time: 46.05 · Fire: 38.85 · Non-suppression: 41.25 · Exempt (non-union): 49.12 • Average length of service: 9.79 years • External hires: 61 • Internal appointments: 55
STRATEGIC OUTCOME OR COUNCIL PRIORITY
2014 PERFORMANCE MEASURES
Economic Strength and Strategic Service Delivery
• Transformed the City jobs webpage into the PoCoWorks! Job Board that lists jobs with the City as well as local businesses.
Strategic Service Delivery and Organizational Development
• Partnered with BCIT to offer its Associate Certificate in Leadership program onsite to City staff. • Conducted focused customer service workshops for staff who interact with the public.
Strategic Service Delivery
• Earned a $46,000 rebate from WorkSafe BC for maintaining high Occupational Health and Safety standards for the fourth year.
STRATEGIC OUTCOME OR COUNCIL PRIORITY
2015 GOALS
Strategic Service Delivery and Organizational Development
• Implement a succession planning and knowledge transfer program, including conducting a City career awareness fair and developing a post-secondary and professional association liaison. • Support in-depth evaluations (Continuous Improvement Assessments) of business licensing and customer service/internal communications.
Strategic Service Delivery
• Complete the IAFF Local 1941 collective agreement for firefighters. • Implement the Human Resources module of the new cloud-based financial system. • Engage union supervisors in the design of a performance planning process.
For more information about Human Resources, visit www.portcoquitlam.ca/HR.
29 CITY OF PORT COQUITLAM
30 ANNUAL REPORT 2014
Parks & Recreation Parks & Recreation contributes to the quality of life and personal wellness of the community.
KEY RESPONSIBILITIES • Provide recreation, fitness, active living, arts and cultural programming. • Coordinate volunteers and events. • Manage and maintain recreation and cultural facilities, parks and other amenities. • Plan and design parks / open space systems. • Manage the City’s facility preventative maintenance and lifecycle programs.
DIVISIONS • Recreation Services • Parks & Facility Services • Centralized Services
STATS & FACTS • Trees planted: 161 • Courses offered: 5,085 • Program registrations: 29,748 · Online registrations: 10,146 • Program hours provided: 28,745 • Drop-in participants: 441,475 • Library items borrowed: 369,531 • Library visits: 191,267 • Residents identifying Terry Fox as home library: 2,473
STRATEGIC OUTCOME OR COUNCIL PRIORITY
2014 PERFORMANCE MEASURES
Community Recreation Complex
• Worked with Development Services to plan for a new community recreation complex to replace existing aging infrastructure.
Community Well-being and Strategic Service Delivery
• Launched a new, more user-friendly online registration system at www.experienceit.ca to replace an outdated system.
Community Well-being
• Completed the washroom, playground and plaza renovation at Lions Park.
Strategic Service Delivery
• Simplified and automated the tree-cutting permit process for residents.
STRATEGIC OUTCOME OR COUNCIL PRIORITY
2015 GOALS
Community Recreation Complex
• Continue planning and design of a new community recreation complex.
Community Well-being
• Complete the final phase of the Lions Park renovation, including spray features and picnic shelter. • Purchase a City float for May Day and other parades, to allow more décor options and reduce costs for participation in other parades. • Expand the columbarium at the City cemetery.
Sense of Community and Sustainable Future
• Update the Cultural Policy and Plan to help plan for arts and cultural services over the next decade.
Community Well-being and Strategic Service Delivery
• Continue to implement and promote the new user-friendly online registration system.
Strategic Service Delivery
• Implement a Chafer Beetle control program on City properties.
For more information about Parks & Recreation, visit www.portcoquitlam.ca/recreation.
CITY OF PORT COQUITLAM
31
32 ANNUAL REPORT 2014
Policing Coquitlam RCMP serves more than 190,000 residents across Anmore, Belcarra, Coquitlam and Port Coquitlam.
KEY RESPONSIBILITIES
SERVICE AREAS
• Reduce crime and protect citizens from the adverse effects of criminal activity through criminal investigations, crime prevention and crime reduction initiatives, and community education and outreach. • Identify/address emerging public safety issues. • Work with the City and citizens to ensure Port Coquitlam is a healthy, vibrant and safe community.
• RCMP • Public Safety Building • Community Policing
For more information about Coquitlam RCMP, visit www.portcoquitlam.ca/policing or www.coquitlam.rcmp.ca.
STATS & FACTS Crime Types Person Crimes1 Property Crimes2 Other (Breach of Probation) Drugs3 Traffic4
2013 totals 876 7,055 329 295 2,083
2014 totals 834 7,257 360 311 1,941
% change -4.8 +2.9 +9.0 +5.4 +6.8
Data Notes and Qualifiers:
1 Abduction, assault, attempted murder, murder (1st and 2nd degree), robbery, and sexual offences. 2 Arson, break and enter, fraud (including debit/credit card and identity theft), mischief, possession of stolen property, theft, and theft of/from vehicle. 3 Illegal indoor marijuana grow operations, possession and/or trafficking of cocaine, heroin and methamphetamine. 4 Collision (fatal, injury and property damage), dangerous operation, impaired operation (alcohol/drugs), prohibited driver, roadside prohibitions and immediate roadside prohibitions.
• Statistics are for the Coquitlam RCMP jurisdiction (Coquitlam, Port Coquitlam, Anmore and Belcarra). • Data extracted 2015-03-02; in cases of discrepancy, the most current data will take precedence. • Criminal Code offence data was compiled using select PRIME BC files and is not comprehensive. • All data is subject to change based on investigational factors and records data quality processes. • Data collected using “most serious offence” scoring, consistent with Statistics Canada and BC Justice Ministry (Police Services Division) data collection practices. • Collision data is not complete as it only includes files where police attended and not all files reported to the Insurance Corporation of British Columbia (ICBC).
STRATEGIC OUTCOME OR COUNCIL PRIORITY
2014 PERFORMANCE MEASURES
Community Well-being
• Funded an additional police officer for Port Coquitlam. • In conjunction with other road safety programs, helped achieve a 3% reduction in collisions causing deaths or injuries.
Strategic Service Delivery
• Conducted front counter and Ipsos Reid surveys that indicated strong satisfaction with police service among citizens and clients.
STRATEGIC OUTCOME OR COUNCIL PRIORITY
2015 GOALS
Community Well-being
• Create safer neighbourhoods by strengthening community engagement. • Decrease the incidence of fatal collisions through education and enforcement. • Reduce the impact of prolific offenders on public safety.
33 CITY OF PORT COQUITLAM
FINANCIAL SECTION
35 CITY OF PORT COQUITLAM
Financial Statement Discussion & Analysis The City of Port Coquitlam’s (the City) Management is responsible for preparing the following financial statement discussion and analysis (FSD&A). The FSD&A reports on the City’s consolidated results and financial position for the year ended December 31, 2014 and should be read in conjunction with the Audited Consolidated Financial Statements and related notes of the City for the year ended December 31, 2014. The FSD&A reports to stakeholders how the financial resources entrusted to the City are being managed to provide municipal services and infrastructure. The FSD&A also explains significant1 differences in the financial statements between budgeted and actual results.
1. Financial Highlights •
Revenues are $8.0 million higher than budgeted. Of this variance, $4.7 million (58.8% of the total variance) is attributable to developer contributions of tangible capital assets. A further $1.4 million (17.5% of the total variance) is attributable to higher investment income due to a larger investment balance than budgeted.
•
Operating expenses are $5.4 million lower than budgeted. Of this variance, $1.2 million (22.2% of the total variance) is attributable to lower water consumption payments than budgeted. A further $1.2 million (22.2% of the total variance) is attributable to lower Parks and Recreation expenses due to timing of projects still in-progress.
•
Annual surplus for the year ended December 31, 2014 is $15.3 million representing a $1.7 million increase in annual surplus from the prior year (2013 - $13.6 million). Of the $15.3 million annual surplus in 2015: ▫ $2.3 million is attributable to general surplus (2013 - $2.3 million); ▫ $1.7 million is attributable to water surplus (2013 - $1.7 million); ▫ $0.6 million is attributable to sewer surplus (2013 - $0.7 million); ▫ $1.7 million is attributable to restricted reserves (2013 - $7.6 million); ▫ $0.2 million (2013 - $0.2 million) represents the overall change in the amount of inventory and prepaid expenses (non-financial assets) held by the city; ▫ The remaining $8.8 million (2013 - $1.1 million) represents the overall net change in tangible capital assets and reduction in debt. • Capital expenditures increased as compared to 2013 with the City investing $14.5 million (2013 - $9.9 million) towards the addition/replacement of tangible capital assets.
2. Consolidated Statement of Operations Analysis REVENUE BY SOURCE In 2014, of the City’s $98 million of revenue, $56.7 million, or 57.9%, comes from property tax. Property taxes represent a stable and predictable source of funds and, for this reason, are the preferred primary source of revenue for many municipalities. At $19.0 million, or 19.4%, utility charges are the next largest source of revenues. Utility charges are used to fund water and sewer utility operating and capital costs.
“The City derives the majority of its revenues (58%) from property taxation.”
1
Significant differences are those where budget to actual result vary by more than 8% or $450,000.
36 ANNUAL REPORT 2014
Financial Statement Discussion & Analysis CONSOLIDATED REVENUE – COMPARISON TO BUDGET FIGURE 1: REVENUE COMPARISON 2014 VS. BUDGET
Taxation and other levies Utility charges Sale of services Contributions Investment income Other revenue Total revenues
2014 Budget
2014 Actual
$
$
$
56,282,300 18,062,300 8,759,100 4,517,293 824,000 1,529,600 89,974,593
$
56,740,830 19,032,830 9,391,106 8,885,325 2,210,536 1,712,588 97,973,215
Variance [Fav / (Unfav)] $ 458,530 970530 632006 4,368,032 1,386,536 182,988 $ 7,998,622
% 0.8% 5.4% 7.2% 96.7% 168.3% 12.0% 8.9%
Taxation and Other Levies Taxation and other levies are $458 thousand (0.8%) higher than budgeted due to higher growth than projected.
Utility Charges Utility charges, which consist of user rates for water and sewer, are $971 thousand (5.4%) higher than budgeted as a result of a higher than anticipated number of new connections added to the utility network in the prior year for which the City is now levying utility charges. Additionally, efforts undertaken by the City to replace faulty water meters have resulted in more accurate consumption statistics and has enabled the City to reduce instances of under billing metered users.
Sale of Services Sale of services is $632 thousand higher than budgeted. Of this amount, $390 thousand (31.7% of the total variance) is the result of the City’s participation in the Multi Materials BC recycling program, which was entered into after the budget had been established. An additional $500 thousand (40.6% of the total variance) is due to higher than anticipated building and plumbing permit revenues. This is offset by $300 thousand (24.4% of the total variance) lower than budgeted construction fees for municipal service connections due to less activity. The reduced revenue is matched by a decrease in construction related expenses. The remaining variances (3.4%) are due to individually immaterial differences.
Contributions Contributions are $4.4 million higher than budgeted due to more developer contributed assets than budgeted.2
Investment Income Investment income is $1.4 million (168.3%) higher than budgeted due to a slight increase in the average rate of return on investments and a larger than anticipated investment balance held by the City throughout the year. The City budgets very conservatively for investment income due to the uncertainty of interest rates and cash flow requirements for the City’s capital program.
Other Revenues Other revenues are $183 thousand (12.0%) higher than budgeted due to a multitude of individually immaterial variances.
2 Developer contributed assets are a non-cash transaction and result in an increase to the amount the City reports as equity in tangible capital assets.
CITY OF PORT COQUITLAM
37
Financial Statement Discussion & Analysis CONSOLIDATED EXPENSES BY FUNCTION – COMPARISON TO BUDGET FIGURE 2: EXPENSES COMPARISON 2014 VS. BUDGET 2014 Budget Engineering and operations Parks and recreation Police services General government Fire and emergency services Development services Water operations Sanitary sewer operations Total expenses
$ 16,550,657 17,525,649 13,692,755 9,140,517 10,205,936 2,754,500 10,569,905 7,641,481 $ 88,081,400
2014 Actual $ 15,597,580 16,338,253 12,754,792 8,696,413 10,290,938 2,283,507 9,379,832 7,371,473 $ 82,712,788
Variance [Fav / (Unfav)] $ 953,077 1,187,396 937,963 444,104 (85,002) 470,993 1,190,073 270,008 $ 5,368,612
% 5.8% 6.8% 6.9% 4.9% -0.8% 17.1% 11.3% 3.5% 6.1%
Engineering & Operations Engineering and operations are $953 thousand (5.8%) under budget. Of this amount $950 thousand (62.5% of the total variance) relates to road rehabilitation projects in-progress where funding has been carried forward to 2015. Consistent with the decrease in sale of services revenue, a further $300 thousand (17.8% of the total variance) relates to lower than forecasted expenses for municipal connections construction due to less activity. Offsetting these favourable variances is $270 thousand (19.7% of the total variance) in higher than budgeted personnel costs due to a combination of staff departures and position changes, as well as participation in the MMBC program. Personnel costs attributable to participation in the MMBC program are offset by sale of service revenues.
Parks & Recreation Parks and recreation are $1.2 million (6.8%) under budget. Of this amount, approximately $565 thousand (47.1% of the total variance) relates to one-time funding for special operating projects that were still in progress at the end of the year, $135 thousand (11.3% of the total variance) are for projects related to the Recreation Complex and have been deferred pending a decision on the Recreation Complex expansion. A further $100 thousand (8.3% of the total variance) related to special operating projects that were completed under-budget or re-assessed and determined to no longer be required. Additionally, $230 thousand (19.2% of the total variance) is attributable to the Parks Maintenance function and is mainly due to lower personnel costs from vacancies due to short-term disabilities. The remaining variance of $170 thousand (14.2% of the total variance) is due to a multitude of minor variances across the various programs and functions run by the department.
Police Services Police services are $937 thousand (6.9%) under budget. Of this amount, $1.1 million (40.0% of the total variance) is attributable to staffing vacancies, $456 thousand (16.6% of the total variance) is attributable to lower than expected health care costs, and a further $300 thousand (10.9% of the total variance) is attributable to other miscellaneous operational variances. These favourable variances are partially offset by $897 thousand (32.6% of the total variance) in cost overages due to higher proportion than forecasted of police activity in the City which impacted the cost share formula.
38 ANNUAL REPORT 2014
Financial Statement Discussion & Analysis Development Services Development services are $471 thousand (17.1%) under budget. Of this amount, $250 thousand (53.1% of the total variance) is for the Recreation Centre Expansion Planning which has been recorded as capital expenditures to meet tangible capital asset reporting requirements, and is not part of the $2.3 million of operating expenditures reported above. Because Public Sector Accounting Standards require the City to present the original 2014 budget adopted by Council on March 24, 2014 as part of the 2014-2018 Financial Plan, the $250 thousand budget for the Recreation Centre Expansion Planning is in the operating section whereas the costs are recorded in the capital section causing an apparent variance. A further $100 thousand (21.2% of the total variance) is attributable to one-time funding for a land and special projects manager. Subsequent to approval of the budget, it was determined that these funds were no longer required. $35 thousand (7.4% of the total variance) relates to a combination of funding for work to be undertaken on the Official Community Plan and work on infill studies. The remaining $86 thousand (18.3% of the total variance) is due to various individually immaterial variances.
Water Operations Water operations are $1.2 million (11.3%) under budget due to lower than anticipated utility rates from Metro Vancouver in addition to lower than forecasted water consumption. Staff have reviewed historical consumption trends as well as consumption projections from Metro Vancouver and have identified potential capacity to reduce the budget for water purchases. A comprehensive review of utility rates is scheduled as part of the 2015 work plan.
3. Capital Expenditures The original capital plan for 2014 totaled $20.4 million. A total of $14.5 million in capital expenditures was incurred in 2014 (2013 - $9.9 million), resulting in a variance of $5.9 million. The City’s Financial Management Policy allows for funding to be carried forward for those projects/purchases which are still in-progress at the end of the year. Of the $5.9 million variance, a total of $5.0 million in capital project funding has been carried forward to the 2015 Financial Plan (2013 - $8.9 million). The remaining variance is attributed to projects budgeted as capital, but at the time of implementation, did not qualify as a capital asset under Public Sector Accounting Standards, or projects completed under budget.
4. Net Financial Assets FIGURE 3: NET FINANCIAL ASSETS COMPARISON 2014 VS. 2013 2014 Financial assets Liabilities Net financial assets
$ 143,024,045 82,807,628 $ 60,216,417
2013 $ 123,374,828 69,906,778 $ 53,068,050
Change from 2013 $ 19,649,217 12,900,850 $ 6,748,367
% Change 13.7% 15.6% 11.2%
39 CITY OF PORT COQUITLAM
Financial Statement Discussion & Analysis As at December 31, 2014, the City held more financial assets than liabilities meaning that there are sufficient funds on hand to pay for all existing obligations with the remaining balance available to fund future activities.
Financial Assets Financial assets have increased by $19.6 million (13.7%); the increase is due to investment of $16.4 million in cash generated from operations and a $2.1 million increase in receivables due to amounts owed from developers for development cost charges.
Liabilities Liabilities have increased by $12.9 million (15.6%). Of the increase, $8.8 million relates to development cost charges which are charged to land developers to offset the cost to the City for providing municipal services to new developments. These funds are recorded as liabilities and recognized as revenue when the funds are spent on capital projects that support municipal services to new developments. The increase in development cost charges is a result of more development activity undertaken in the year. The remaining variances are due largely to differences in timing of when bills were received and payments made.
5. Accumulated Surplus Accumulated surplus increased from $679.4 million in 2013 to $694.7 million in 2014. The increase of $15.3 million (2.25%) corresponds to the 2014 annual surplus (2013 - $13.6 million). The breakdown of the annual surplus is outlined in the chart below. FIGURE 4: COMPONENTS OF 2014 ANNUAL SURPLUS
40 ANNUAL REPORT 2014
Financial Statement Discussion & Analysis UNRESTRICTED RESERVES The City maintains unrestricted reserves in order to reduce the need for temporary borrowing in advance of collecting annual property taxes and utility fees, and also to ensure adequate funds are on hand in the event of an emergency (e.g. major flooding, earthquake, unplanned infrastructure replacements). In 2014, unrestricted reserves increased by $2.5 million (13.2%) for general, $1.7 million (30.7%) for water and $607 thousand (32.0%) for sewer.
Unrestricted General Reserves Of the $2.3 million increase in unrestricted general reserves: •
Approximately $1.0 million is the result of surplus generated from higher revenues than budgeted for various taxes, sale of services and investment income. Approximately $1.3 million is the result of lower costs than forecasted. Of this amount, $937 thousand relates to favourable variances in police services due to staff vacancies and other operational savings, a further $400 thousand is attributable to favourable variances in parks and recreation due to a multitude of minor program variances. Variances due to projects in-progress or completed projects are reported as part of the increase to the reserve fund.
Unrestricted Water Reserves Of the $1.7 million increase in unrestricted water reserves: • •
Approximately $0.5 million is the result of surplus generated from higher revenues than budgeted. Approximately $1.2 million is the result of lower costs than expected, related primarily to lower than anticipated billings from Metro Vancouver for water consumption.
Unrestricted Sewer Reserves Of the $0.6 million increase in unrestricted sewer reserves: • •
Approximately $0.4 million is the result of surplus generated from higher revenues than budgeted. Approximately $0.2 million is the result of lower costs than expected.
RESTRICTED RESERVES As outlined in the Financial Management Policy, the purpose of setting aside reserves is to: • • • •
Provide a source of funds for future capital expenditures. Provide a source of funding for areas of expenditure that fluctuate significantly from year to year (equipment replacement, special building maintenance, etc.). Protect the City from uncontrollable or unexpected increases in expenditures or unforeseen reductions in revenues, or a combination of the two. Provide for working capital to ensure sufficient cash flow to meet the City’s needs throughout the year.
The Community Charter is the primary legislative source for the rules governing the use of restricted reserves. The Charter is supplemented by the City’s reserve bylaws which provide more specific details on the intended purposes of each of the City’s restricted reserves. • • • • •
Some of the City’s larger reserves relate to: Equipment replacement ($10.2 million) Roads and drainage ($7.2 million) Proceeds from land sale ($8.1 million) Long term infrastructure replacement ($10.2 million)
41 CITY OF PORT COQUITLAM
Financial Statement Discussion & Analysis FIGURE 5: RESTRICTED RESERVES COMPARISON 2014 VS. 2013 2014 Opening balance Contributions/transfers Interest allocation Use of reserves Closing balance
$ 51,035,087 13,763,382 1,076,895 (13,174,351) $ 52,701,013
2013 $ 43,392,924 13,744,303 946,043 (7,048,183) $ 51,035,087
Change from 2013 $ 7,642,163 19,079 130,852 (6,126,168) $ 1,665,926
% Change 17.6% 0.1% 13.8% 86.9% 3.3%
Contributions to reserves include: • • •
Funding from property taxes (Capital Funding Envelopes, Long Term Infrastructure contributions, repayment of internal borrowings), Contributions from developers (parking), disposals of assets (land, equipment), and Surplus operating funds as per the Financial Management Policy (Arts & Culture, Snow & Ice Removal, Canada/May Day, Election).
The interest allocation is based on the City’s average of the beginning and ending reserve balances and the average interest rate earned in the year. There was an increase over 2013 in use of reserves for Capital and Operating expenditures.
EQUITY IN TANGIBLE CAPITAL ASSETS Represents the amount of equity that the City has related to its tangible capital assets. This is defined as the historical cost of the asset, minus any debt used to finance the purchase/acquisition of the tangible capital asset and minus any amortization on the asset. Factors that result in an increase to the balance include: • •
Purchase/acquisition of new tangible capital assets (without the use of external borrowing) Repayment of any outstanding debt used to finance the purchase/acquisition of tangible capital assets
Factors that result in a decrease to the balance include: • •
Amortization or write-down of assets Sale or disposal of assets
$ 601,845,989
$ 600,747,376
Change from 2013 $ 1,098,613
20,260,220
14,126,157
6,134,063
30.3%
525,982
282,279
243,703
46.3%
(276,046)
(1,772,150)
1,496,104
-542.0%
(11,716,757) $ 610,639,388
(11,537,673) $ 601,845,989
(179,084) $ 8,793,399
1.5% 1.4%
2014 Opening balance Purchase/acquisition of new tangible capital assets Repayment of debt Disposal of tangible capital assets Amortization and writedowns Closing balance
2013
% Change 0.2%
42 ANNUAL REPORT 2014
Financial Statement Discussion & Analysis
6. Liquidity and Capital Resources CASH FLOWS AND LIQUIDITY The City continues to maintain a strong cash position as demonstrated by the $5.9 million in cash and cash equivalents on hand at year-end. Of the $32.4 million in cash generated from operating activities in 2014: • • • •
$1.0 million was used to increase the balance of cash on hand $14.5 million was used to acquire or construct capital assets $16.3 million was invested $526 thousand was used to pay down debt
The City continues to maintain multiple sources of liquidity. Unrestricted cash and near-cash equivalents, and term deposits with a maturity less than a year included: • •
Cash and cash equivalents ($5.1 million) Term deposits ($127.7 million)
DEBT In 2009, the City incurred $25 million of debt through the Municipal Finance Authority to help fund construction of the Coast Meridian Overpass. The debt has a repayment period of 30 years with an interest rate of 4.13%. In 2019 the City will have the option to full settle the outstanding balance or to refinance the remaining balance with a different repayment period. If the debt is refinanced, the City will be subject to the prevailing market rates for interest at the time. Section 174 of the Community Charter restricts the amount of debt that can be incurred by the City. Under the regulations, the maximum value of debt servicing costs for a given year is 25% of the City’s controllable and sustainable revenues for the previous year. In 2014 the City had debt servicing costs of $1.4 million (2013 - $1.4 million) as compared to the liability servicing limit of $20.9 million (2013 - $20.5 million).
43 CITY OF PORT COQUITLAM
Auditors’ Report to the Mayor and Council
KPMG LLP Chartered Accountants Metrotower II Suite 2400 - 4720 Kingsway Burnaby BC V5H 4N2 Canada
Telephone (604) 527-3600 Fax (604) 527-3636 Internet www.kpmg.ca
INDEPENDENT AUDITORS’ REPORT To the Mayor and Council of the Corporation of the City of Port Coquitlam We have audited the accompanying consolidated financial statements of the Corporation of the City of Port Coquitlam, which comprise the consolidated statement of financial position as at December 31, 2014, the consolidated statements of operations, change in net financial assets and cash flows for the year then ended, and notes, comprising a summary of significant accounting policies and other explanatory information. Management’s Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG Canada provides services to KPMG LLP.
44 ANNUAL REPORT 2014
Auditors’ Report to the Mayor and Council
Opinion In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Corporation of the City of Port Coquitlam as at December 31, 2014, and its consolidated results of operations, its change in consolidated net financial assets and its consolidated cash flows for the year then ended in accordance with Canadian public sector accounting standards. Other Matters Our audit was made for the purpose of forming an opinion on the consolidated financial statements taken as a whole. The current year’s supplementary information included in Schedule 1 is presented for purposes of additional analysis and is not a required part of the consolidated financial statements. Such supplementary information has been subjected to the auditing procedures applied in the audit of the consolidated financial statements and, in our opinion, is fairly stated in all material respects in relation to the consolidated financial statements taken as a whole.
Chartered Accountants May 11, 2015 Burnaby, Canada
45 CITY OF PORT COQUITLAM
Consolidated Statement of Financial Position AS AT DECEMBER 31, 2014 2014
2013
FINANCIAL ASSETS Cash and cash equivalents Investments Accounts receivable Due from other governments
$ Note 3 Note 4 Note 5
5,992,167 127,753,053 8,675,711 603,114 143,024,045
$
4,952,306 111,382,843 6,545,756 493,923 123,374,828
Accounts payable Deferred revenues
Note 6 Note 7
12,894,226 10,287,019
10,738,839 8,948,853
Deposits Development cost charges Post-employment future benefits and compensated absences Debt
Note 8 Note 9 Note 10
7,423,612 26,429,540 2,985,000
6,339,584 17,588,289 2,977,000
Note 11
22,788,231 82,807,628
23,314,213 69,906,778
60,216,417
53,468,050
633,427,619
625,160,202
571,914
584,364
438,035 634,437,568
180,942 625,925,508
LIABILITIES
NET FINANCIAL ASSETS NON-FINANCIAL ASSETS Tangible capital assets
Note 12
Inventories Prepaid expenses
ACCUMULATED SURPLUS
Note 13
Commitments and Contingencies
Note 17
$ 694,653,985
$
679,393,558
See accompanying Notes to the Consolidated Financial Statements
John Leeburn, MBA Chief Administrative Officer
Karen Grommada, CPA, CMA Director of Finance
46 ANNUAL REPORT 2014
Consolidated Statement of Operations FOR THE YEAR ENDED DECEMBER 31, 2014
2014 Budget (Notes 2c and 20)
2014
2013
REVENUES Taxation and other levies Utility charges Sale of services Contributions Investment income Other revenue
Note 19
$
56,282,300 18,062,300 8,759,100 4,517,293 824,000 1,529,600 89,974,593
$ 56,740,830 19,032,830 9,391,106 8,885,325 2,210,536 1,712,588 $ 97,973,215
16,550,657 17,525,649 13,692,755 9,140,517 10,205,936 2,754,500 10,569,905 7,641,481 88,081,400
$ 15,597,580 16,338,253 12,754,792 8,696,413 10,290,938 2,283,507 9,379,832 7,371,473 $ 82,712,788
1,893,193
15,260,427
13,632,721
679,393,558
679,393,558
665,760,837
$ 681,286,751
$ 694,653,985
$
$
$
55,897,126 18,465,923 8,845,104 7,377,170 1,811,443 1,619,730 94,016,496
EXPENSES Engineering and operations Parks and recreation Police services General government Fire and emergency services Development services Water operations Sanitary sewer operations
$
$ ANNUAL SURPLUS
ACCUMULATED SURPLUS, beginning of year
ACCUMULATED SURPLUS, end of year
$
$
$
15,985,464 16,731,667 12,368,253 7,399,452 9,011,200 2,204,110 9,388,751 7,294,878 80,383,775
679,393,558
See accompanying Notes to the Consolidated Financial Statements
47 CITY OF PORT COQUITLAM
Consolidated Statement of Cash Flows FOR THE YEAR ENDED DECEMBER 31, 2014 2014
2013
CASH PROVIDED (USED) BY: Annual surplus
$
Items not involving cash: Developer contributions of tangible capital assets Amortization Loss (gain) on disposal of tangible capital assets Write-downs of tangible capital assets Non-cash post-employment future benefits and compensated absences Change in non-cash operating assets and liabilities Accounts receivable Due from other governments Accounts payable Deferred revenues Deposits Development cost charges Inventories Prepaid expenses Cash provided by operations
15,260,427
$
13,632,721
(5,765,936) 11,713,008 238,198 3,749
(4,183,221) 11,534,077 (419,072) 3,596
8,000
340,000
(2,129,955) (109,191) 2,155,387 1,338,166 1,084,028 8,841,251 12,450 (257,093) 32,392,489
1,543,796 171,948 (961,072) 80,078 303,471 1,420,055 (244,221) 62,310 23,284,466
(525,982) (525,982)
(282,279) (282,279)
(14,494,284) 37,848 (14,456,436)
(9,942,936) 2,191,222 (7,751,714)
(127,370,210) 111,000,000 (16,370,210)
(160,436,909) 146,000,000 (14,436,909)
INCREASE IN CASH AND CASH EQUIVALENTS
1,039,861
813,564
CASH AND CASH EQUIVALENTS, beginning of year
4,952,306
4,138,742
FINANCING TRANSACTIONS Debt repayment Cash used in financing CAPITAL TRANSACTIONS Cash used to acquire tangible capital assets Cash received from disposals of tangible capital assets Cash used in capital INVESTING TRANSACTIONS Purchase of investments Redemption of investments Cash used in investing
CASH AND CASH EQUIVALENTS, end of year
$
5,992,167
$
4,952,306
See accompanying Notes to the Consolidated Financial Statements
48 ANNUAL REPORT 2014
Consolidated Statement of Change in Net Financial Assets FOR THE YEAR ENDED DECEMBER 31, 2014
2014 Budget (Notes 2c and 20)
Annual surplus Acquisition of tangible capital assets Developer contributions of tangible capital assets Amortization of tangible capital assets Loss (gain) on disposal of tangible capital assets Write-downs of tangible capital assets Proceeds on disposal of tangible capital assets Use (acquisition) of inventories Use (acquisition) of prepaid expenses
2013
1,893,193 (20,424,600) (1,000,000) 12,300,000 -
$ 15,260,427 (14,494,284) (5,765,936) 11,713,008 238,198 3,749 37,848 12,450 (257,093)
INCREASE (DECREASE) IN NET FINANCIAL ASSETS
(7,231,407)
6,748,367
12,634,476
NET FINANCIAL ASSETS, beginning of year
53,468,050
53,468,050
40,833,574
46,236,643
$ 60,216,417
NET FINANCIAL ASSETS, end of year
$
2014
$
$
$
13,632,721 (9,942,936) (4,183,221) 11,534,077 (419,072) 3,596 2,191,222 (244,221) 62,310
53,468,050
See accompanying Notes to the Consolidated Financial Statements
49 CITY OF PORT COQUITLAM
Notes to the Consolidated Financial Statements YEAR ENDED DECEMBER 31, 2014
1. Operations The Corporation of the City of Port Coquitlam (the “City”) is incorporated under the Local Government Act of British Columbia. The City’s principal activities include the provision of local government services to residents of the incorporated area. These include administrative, protective, transportation, environmental, recreational, water and sanitary sewer services.
2. Significant Accounting Policies The consolidated financial statements of the City are prepared in accordance with Public Sector Accounting Standards as prescribed by the Public Sector Accounting Board (“PSAB”) of the Chartered Professional Accountants of Canada.
A. BASIS OF PRESENTATION The consolidated financial statements comprise the City’s General, Water, Sewer and Reserve funds and the Port Coquitlam Community Foundation. All inter-fund and inter-entity balances have been eliminated. Under the Community Charter, City Council may, by bylaw, establish reserve funds for specified purposes: (i) Internally restricted reserves are in accordance with City policy and with bylaws adopted by Council pursuant to the Community Charter. The policy and bylaws define the funding source for each reserve and their usage. (ii) Statutorily restricted reserves are reserves restricted by the provincial government in accordance with the Community Charter. The legislation defines the funding source for each reserve and their usage. Trust funds are those that are administered for certain beneficiaries. In accordance with PSAB recommendations, trust funds are not included in the City’s consolidated financial statements. Trust funds administered by the City are presented in Note 18.
B. BASIS OF ACCOUNTING The City follows the accrual method of accounting for revenues and expenses. Revenues are recognized in the year in which they are earned and measurable. Expenses are recognized as they are incurred and measurable as a result of receipt of goods and services and/or the creation of a legal obligation to pay.
C. BUDGET INFORMATION The budget information reported in the consolidated statement of operations and the consolidated statement of change in net financial assets reflects the 2014 Financial Plan Bylaw adopted by City Council on March 24, 2014.
D. CASH AND CASH EQUIVALENTS Cash and cash equivalents consist of cash, highly liquid money market investments and investments with maturities of less than 90 days at acquisition.
E. INVESTMENTS Investments are recorded at cost, adjusted for amortization of premiums or discounts. Provisions for losses are recorded when they are considered to be other than temporary.
F. DEFERRED REVENUE Deferred revenue consists of property taxes, utilities, and recreation program fees paid in advance for services yet to be provided. The City defers amounts collected from permits, licenses, and other fees and recognizes the amount as revenue in the year in which related inspections are performed or other related expenditures are incurred.
50 ANNUAL REPORT 2014
Notes to the Consolidated Financial Statements G. DEPOSITS Deposits represent cash collected by the City as security against work performed by property developers. The security is returned to the developer upon satisfactory completion of the work, or recognized into revenue if the work is not performed in accordance with the applicable bylaws.
H. DEVELOPMENT COST CHARGES Development cost charges, collected to pay for capital projects due to be developed, are deferred upon receipt and are recognized as revenue when the capital costs for which they were collected are incurred.
I. POST-EMPLOYMENT FUTURE BENEFITS The City and its employees make contributions to the Municipal Pension Plan. As this plan is a multi-employee plan, contributions are expensed as incurred. Post-employment benefits also accrue to City employees. Liabilities related to these benefits are actuarially determined based on service and best estimates of retirement ages and expected future salary and wage increases. Liabilities under these benefits plans are accrued based on projected benefits as the employees render services necessary to earn the future benefits.
J. DEBT Debt is recorded in the consolidated financial statements net of sinking fund assets.
K. NON-FINANCIAL ASSETS Non-financial assets are not available to discharge existing liabilities and are held for use in the provision of services. They have useful lives extending beyond the current year and are not intended for sale in the ordinary course of operations.
Tangible Capital Assets Tangible capital assets are recorded at cost which includes amounts that are directly attributable to acquisition, construction, development or betterment of the asset. The cost, less residual value, is amortized on a straight line basis over the asset’s useful life as follows: MAJOR ASSET CATEGORY Land Parks Infrastructure Vehicles, Machinery & Equipment Transportation Infrastructure Buildings
USEFUL LIFE Not amortized 3 to 100 years 5 to 25 years 10 to 100 years 20 to 70 years
MAJOR ASSET CATEGORY Drainage Infrastructure Land Improvements Water Infrastructure Sanitary Infrastructure
USEFUL LIFE 25 to 100 years 45 to 100 years 25 to 80 years 25 to 100 years
Amortization begins once the asset is in use and ends when the asset is disposed or decommissioned. Assets under construction are not amortized until the asset is available for productive use. Tangible capital assets received as contributions are recorded at their fair value at the date of receipt and are also recorded as revenue. Interest is capitalized whenever external debt is issued to finance the construction of tangible capital assets. Leases, which transfer substantially all of the benefits and risks incidental to ownership of property, are accounted for as leased tangible capital assets. All other leases are accounted for as operating leases and the related payments are charged to expenses as incurred. Natural resources, works of art and historic assets are not recorded as assets in these financial statements.
Inventories Inventories held for consumption or resale are recorded at the lower of cost and replacement cost.
51 CITY OF PORT COQUITLAM
Notes to the Consolidated Financial Statements L. GOVERNMENT TRANSFERS Restricted transfers from governments are deferred and recognized as revenue as the related expenditures are incurred or the stipulations in the related agreement are met. Unrestricted transfers are recognized as revenue when received or if the amount to be received can be reasonably estimated and collection is reasonably assured.
M. USE OF ESTIMATES The preparation of consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Significant areas requiring the use of management estimates relate to the determination of post-employment benefits, allowance for doubtful accounts receivable, provision for contingencies, valuation of contributed tangible capital assets, and useful lives of tangible capital assets. Actual results may differ from management’s estimates as additional information becomes available. Adjustments, if any, will be reflected in the consolidated financial statements in the period that the change in estimate is made, as well as in the period of settlement if the amount is different.
N. SEGMENT DISCLOSURE A segment is defined as a distinguishable activity or group of activities of a government for which it is appropriate to separately report financial information to achieve the objectives of the standard. Financial information is presented in segmented format in Note 21.
3. Investments Investments have maturity dates of more than 90 days at acquisition and include term deposits in credit unions and deposits in the Municipal Finance Authority. Short-term deposits include term deposits in credit unions with varying maturity dates from January, 2015 to December, 2015. Investments are guaranteed by the Province of BC and have varying maturity dates from January, 2015 to January, 2016. Investments and short-term deposits have rates of return ranging from 1.09% to 2.12% (2013 - 0.06% to 6.49%).
Short-term deposits Government bonds Municipal Finance Authority Intermediate Fund
2014 $ 122,000,000 5,753,053 $ 127,753,053
2013 $ 87,000,000 3,894,344 20,488,499 $ 111,382,843
2014 2,693,120 485,662 3,386,623 2,110,306 8,675,711
2013 2,927,499 939,477 1,343,635 1,335,145 6,545,756
4. Accounts Receivable Property tax and utility receivable Accounts receivable Development cost charges receivable Other
$
$
$
$
52 ANNUAL REPORT 2014
Notes to the Consolidated Financial Statements 5. Due from Other Governments Government of Canada Province of BC Other governments
2013
2014 $ 450,429 109,179 43,506 $ 603,114
$
$
245,672 203,839 44,412 493,923
6. Accounts Payable 2014 Accounts payable and accrued liabilities Wages and benefits payable Statutory holdbacks Due to other governments
$
8,483,357 3,639,628 505,359 265,882 $ 12,894,226
2013 $
7,437,551 2,954,663 258,216 88,409 $ 10,738,839
7. Deferred Revenues Deferred revenues relate to amounts deposited in advance of services performed. 2014 Property tax and utility charges Programs and services
$
7,108,025 3,178,994 $ 10,287,019
2013 $ $
6,841,097 2,107,756 8,948,853
8. Deposits Deposits represent cash collected as security under the Port Coquilam Highway Bylaw, 1984 No. 2011; Subdivision Servicing Bylaw 1987 No. 2241; and City of Port Coquitlam Soil Removal and Deposit Bylaw 2002 No. 3331.
53 CITY OF PORT COQUITLAM
Notes to the Consolidated Financial Statements 9. Development Cost Charges AREA 1 Drainage Transportation Parks Water Sanitary
Balance, beginning of year $
Third Party Contributions
3,748,028 7,541,275 3,458,075 4,373,636 1,352,426
$
67,895 531,080 395,675 30,344 18,700
Interest Allocation $
Capital Expenditures
Balance, end of year
79,346 163,787 70,784 92,077 28,570
(564,104) -
$ 3,895,269 8,236,142 3,360,430 4,496,057 1,399,696
(14,433) (52,489) 28,474 23,148 14,541 23,150 $ 456,955
(356,607) (37,916) $ (958,627)
(239,221) 770,038 1,426,349 1,227,283 749,872 1,107,625 $ 26,429,540
AREA 2 Drainage Transportation Parks Water Sanitary Parks interest $
(1,151,121) (5,826,253) 1,316,448 1,002,494 650,890 1,122,391 17,588,289
926,333 7,005,387 81,427 201,641 84,441 9,342,923
$
10. Post-Employment Future Benefits and Compensated Absences The City provides sick leave and retirement benefits to its employees. Eligible employees accumulate sick leave entitlement on a monthly basis and can only use this entitlement for paid time off under certain circumstances. Retirement benefits represent the City’s share of the cost to provide eligible employees with severance pay upon retirement. The amount recorded for these benefits is based on an actuarial valuation done by an independent firm of actuaries using a projected benefit actuarial valuation method pro-rated on services. The most recent actuarial valuation of the City’s future benefits was completed as at December 31, 2014. Information regarding the City’s obligations for these benefits is as follows: Non-vested Sick Leave Accrued benefit obligation, beginning of year Service cost Interest cost Benefit payments Amortization of net actuarial losses Accrued benefit obligation, end of year Unamortized actuarial loss Accrued benefit liability
$
191,000 130,000 10,000 (133,000) 440,000 638,000 (440,000) $ 198,000
Severance
2014
$ 2,795,000 153,000 114,000 (289,000) 276,000 3,049,000 (262,000) $ 2,787,000
$ 2,986,000 283,000 124,000 (422,000) 716,000 3,687,000 (702,000) $ 2,985,000
2013 $2,772,000 286,000 160,000 (138,000) (94,000) 2,986,000 (9,000) $2,977,000
The unamortized actuarial loss is amortized over a period equal to the employees’ average remaining service lifetime. The significant actuarial assumptions adopted in measuring the City’s accrued benefit liability are as follows:
54
Discount rates Expected future inflation rates Expected compensation increases Expected average remaining service lifetime
2014
2013
3.00% 2.50% 2.58% - 4.63% 10 years
4.00% 2.25% 2.50% 10.1 years
ANNUAL REPORT 2014
Notes to the Consolidated Financial Statements 11. Debt ‘The City incurs debt through the Municipal Finance Authority (MFA) in accordance with the Community Charter to finance certain capital expenditures. Sinking Fund assets managed by the MFA are netted against related debt. The gross amount of debt and the amount of sinking fund assets available to retire the debt are as follows:
Gross Debt Coast Meridian Overpass, Bylaw 3611, 4.13%, due 2039
$ 25,000,000
2014 Sinking Fund Asset $ 2,211,769
2013 Net Debt
Net Debt
$ 22,788,231
$ 23,314,213
Future payments on net outstanding debt over the next five years and thereafter are paid from the General Fund and are as follows:
2015 2016 2017 2018 2019 Thereafter Principal and interest payments Amount representing interest Debt principal repayments
Debt Payments $ 1,478,252 1,478,252 1,478,252 1,478,252 1,478,252 29,565,040 36,956,300 14,168,069 $22,788,231
The City paid $943,853, net of earnings on debt reserve deposit, in interest on debt during the year (2013 - $959,001).
55 CITY OF PORT COQUITLAM
Notes to the Consolidated Financial Statements 12. Tangible Capital Assets a.
Assets Under Construction: Assets under construction having a value of $3,958,558 (2013 - $2,541,469) have not been amortized. Amortization of these assets will commence when the assets are put into service.
b.
Contributed Tangible Capital Assets: Contributed tangible capital assets (including transportation, drainage, water and sanitary sewer assets) have been recognized at fair market value at the date of contribution. The value of contributed assets received during the year is $5,765,936 (2013 - $4,183,221). AS AT DECEMBER 31, 2014 Parks Infrastructure
Land COST Opening balance Add: Additions Add/(Deduct): Transfers from AUC Less: Disposals Less: Write-downs Closing balance
$
219,221,016 $ 4,927,269 224,148,285
ACCUMULATED AMORTIZATION Opening balance Add: Amortization Less: Accumulated amortization on disposals Closing balance Net book value as at December 31, 2014
$
21,988,031 $ 593,720 22,581,751
12,503,508 853,403 13,356,911
224,148,285 $
9,224,840 $
AS AT DECEMBER 31, 2013 Parks Infrastructure
Land COST Opening balance Add: Additions Add/(Deduct): Transfers from AUC Less: Disposals Less: Write-downs Closing balance
$
ACCUMULATED AMORTIZATION Opening balance Add: Amortization Less: Accumulated amortization on disposals Closing balance Net book value as at December 31, 2013
216,482,674 $ 3,042,670 (304,328) 219,221,016
$
219,221,016 $
Vehicles, Machinery, Equipment
Transportation Infrastructure
20,323,017 $ 254,026,617 3,600,125 4,579,687 763,819 (519,033) (460,795) (3,749) 23,404,109 258,905,579
11,600,832 1,641,588 (485,328) 12,757,092
46,343,454 4,221,559 (227,408) 50,337,605
10,647,017 $ 208,567,974
Vehicles, Machinery, Equipment
Transportation Infrastructure
21,758,418 $ 229,613 21,988,031
19,681,177 $ 251,813,650 2,755,727 3,009,955 31,967 969,718 (2,142,258) (1,766,706) (3,596) 20,323,017 254,026,617
11,658,094 845,414 12,503,508
12,078,638 1,494,934 (1,972,740) 11,600,832
9,484,523 $
42,939,485 4,194,750 (790,781) 46,343,454
8,722,185 $ 207,683,163
56 ANNUAL REPORT 2014
Notes to the Consolidated Financial Statements c.
Works of art and historical treasures: The City manages and controls some works of art and non-operational historical assets located at City sites and public display areas. These assets are not recorded as tangible capital assets and are not amortized.
d.
Write-down (adjustments) of tangible capital assets: The write-down of tangible capital assets during the year was $3,749 (2013 - $3,596).
Buildings $
$
$
Water
Sanitary Sewer
36,049,744 $ 546,607 36,596,351
85,929,679 $ 20,464,855 $ 557,992 68,130 286,807 (283) 86,774,195 20,532,985
72,030,090 $ 1,857,914 444,967 (19,006) 74,313,965
57,046,585 $ 319,341 296,753 57,662,679
15,764,272 976,996 16,741,268
26,732,230 1,289,913 (154) 28,021,989
5,187,468 290,242 5,477,710
27,856,074 1,586,920 (10,181) 29,432,813
18,473,063 852,387 19,325,450
58,752,206 $
15,055,275 $
19,855,083 $
Buildings
$
Drainage
Land Improvements
Drainage
Land Improvements
44,881,152 $
Water
38,337,229 $
Sanitary Sewer
35,665,131 $ 135,980 285,633 (37,000) 36,049,744
85,655,188 $ 20,318,484 $ 272,637 137,788 146,371 (135,934) 85,929,679 20,464,855
70,478,509 $ 893,220 1,054,017 (395,656) 72,030,090
56,307,135 $ 340,415 541,853 (142,818) 57,046,585
14,780,254 1,014,751 (30,733) 15,764,272
25,491,269 1,280,617 (39,656) 26,732,230
4,897,212 290,256 5,187,468
26,506,094 1,573,542 (223,562) 27,856,074
17,728,328 839,813 (95,078) 18,473,063
59,197,449 $
15,277,387 $
20,285,472 $
44,174,016 $
38,573,522 $
Assets Under Construction (AUC)
2014 Total
2,541,469 $ 789,621,103 3,209,435 20,260,220 (1,792,346) (999,117) (3,749) 3,958,558 $ 808,878,457
-
$ 164,460,901 11,713,008 (723,071) 175,450,838
3,958,558 $ 633,427,619
Assets Under Construction (AUC)
2013 Total
2,262,876 $ 780,423,242 3,445,940 14,126,157 (3,167,347) (4,924,700) (3,596) 2,541,469 $ 789,621,103
- $ 156,079,374 11,534,077 (3,152,550) - 164,460,901 2,541,469 $ 625,160,202
57 CITY OF PORT COQUITLAM
Notes to the Consolidated Financial Statements 13. Accumulated Surplus 2014 Unrestricted Reserves: General Water Sewer
$
2013
20,727,405 7,072,784 2,503,446 30,303,635
$
18,438,350 5,412,626 1,896,200 25,747,176
Restricted Reserves
Note 14
52,701,013
51,035,087
Equity in tangible capital assets Equity in inventories and prepaids
Note 15
610,639,388 1,009,949 611,649,337
601,845,989 765,306 602,611,295
$ 694,653,985
$ 679,393,558
14. Restricted Reserves Balance, beginning of year Building maintenance Cemetery expansion Community amenities Environmental Equipment Gas tax Land sale Long term infrastructure Operating Parking Parks and recreation Public safety building Public works special capital Roads and drainage infrastructure Sewer Social housing Unallocated capital Water
Contributions/ Transfers
$
228,428 127,441 180,202 186,976 15,270,968 6,310,258 5,994,366 1,638,842 2,242,150 1,961,932 480,125 2,210,115 9,719,906 3,232,016 221,201 1,030,161 $ 51,035,087
$
2,910,600 28,862 (1,666,770) 214,176 1,596,913 4,080,700 115,479 294,869 892,184 234,200 1,750,200 582,500 1,440,469 1,289,000 $ 13,763,382
Interest Allocation $
32,438 2,344 3,581 3,503 264,095 2,247 149,141 168,568 32,840 50,134 33,636 11,239 46,368 175,190 67,523 4,641 15,111 14,296 $ 1,076,895
Use of Reserves
Balance, end of year
$ (275,146) (60,320) (19,000) (40,000) (3,699,305) (262,553) (1,609,604) (123,033) (4,489,326) (609,596) (1,986,468) $ (13,174,351)
$ 2,896,320 98,327 164,783 150,479 10,168,988 216,423 8,056,312 10,243,634 1,524,608 2,587,153 1,278,148 602,531 2,256,483 7,155,970 3,272,443 225,842 1,455,580 346,989 $ 52,701,013
15. Equity in Tangible Capital Assets 2014 Cost of tangible capital assets Accumulated amortization Debt incurred to purchase tangible capital assets
Note 12 Note 12 Note 11
$808,878,457 (175,450,838) (22,788,231) $610,639,388
2013 $789,621,103 (164,460,901) (23,314,213) $ 601,845,989
58 ANNUAL REPORT 2014
Notes to the Consolidated Financial Statements 16. Pension Plan The City and its employees contribute to the Municipal Pension Plan (the Plan), a jointly trusteed pension plan. The Board of Trustees, representing plan members and employers, is responsible for overseeing the management of the Plan, including investment of the assets and administration of benefits. The Plan is a multi-employer contributory pension plan. Basic pension benefits provided are based on a formula. The plan has about 182,000 active members and approximately 75,000 retired members. Active members include approximately 336 (2013 - 302) contributors from the City. The most recent actuarial valuation as at December 31, 2012 indicated a $1,370 million funding deficit for basic pension benefits. The next valuation will be as of December 31, 2015 with results available in 2016. Employers participating in the Plan record their pension expense as the amount of employer contributions made during the fiscal year (defined contribution pension plan accounting). This is because the Plan records accrued liabilities and accrued assets for the Plan in aggregate with the result that there is no consistent and reliable basis for allocating the obligation, assets and cost to the individual employers participating in the Plan. The City paid $2,483,880 (2013 - $2,388,550) for employer contributions while employees contributed $2,029,403 (2013 - $1,948,563) to the plan in fiscal 2014.
17. Commitments and Contingencies a.
The City has a contract with the federal government whereby the federal government provides Royal Canadian Mounted Police (RCMP) policing services. RCMP members and the federal government are currently in legal proceedings regarding pay raises for 2009 and 2010 that were retracted for RCMP members. As the final outcome of the legal action and the potential financial impact to the City is not determinable, the City has not recorded any provision for this matter in the financial statements as at December 31, 2014.
b.
The loan agreements with the Greater Vancouver Regional District and the Municipal Finance Authority provide that, if at any time the scheduled payments provided for in the agreements are not sufficient to meet the Authority’s obligations in respect of such borrowing; the resulting deficiency becomes a joint and several liability of the City and the other participants.
c.
A number of legal claims have been initiated against the City in varying or unspecified amounts. The outcome of these claims cannot reasonably be determined at this time. The amount of loss, if any, arising from these claims will be recorded in the period in which the loss is realized. Liability insurance is carried by the City, subject to a deductible of $250,000. The City self insures claims under $250,000.
d.
The City is a shareholder and member of E-Comm Emergency Communications for Southwest British Columbia Incorporated (E-Comm) whose services provided include: regional 9-1-1 call centre for the Greater Vancouver Regional District; Wide Area Radio network; dispatch operations; and records management. The City has 1 Class A share and 2 Class B shares (of a total of 28 Class A and 23 Class B shares issued and outstanding as at December 31, 2014). As a Class A shareholder, the City shares in both funding the future operations and capital obligations of E-Comm (in accordance with a cost sharing formula), including any lease obligations committed to by E-Comm up to the shareholder’s withdrawal date.
e.
The City provides a share of both the ongoing operations and any additional costs relating to capital assets (in accordance with a negotiated agreement) for the RCMP building located at 2986 Guildford Way, Coquitlam, BC.
59 CITY OF PORT COQUITLAM
Notes to the Consolidated Financial Statements 18. Trust Funds Certain assets have been conveyed or assigned to the City to be administered as directed by an agreement or statute. The City holds the assets for the benefit of, and stands in a fiduciary relationship, to the beneficiary. The following trust fund is excluded from the City’s consolidated financial statements. 2014
2013
CEMETERY PERPETUAL CARE FUND Cash balance, beginning of year
$ 1,263,357
$ 1,207,817
Net contributions received Interest earned Cash balance, end of year
37,075 26,920 $ 1,327,352
30,770 24,770 $ 1,263,357
19. Taxation and Other Levies In addition to levying and collecting real property tax for municipal purposes, the City is required to levy and collect taxes on behalf of other jurisdictions as noted below:
2014 Gross taxes levied on property Taxes levied and collected on behalf of other jurisdictions Province of BC - School Taxes Greater Vancouver Regional District BC Assessment Authority South Coast British Columbia Transportation Authority Municipal Finance Authority
Taxation revenue
2013
$ 90,416,327
$ 88,620,255
26,425,137 788,539 851,301
25,463,809 805,883 846,396
5,607,832
5,604,370
2,688 33,675,497
2,671 32,723,129
$ 56,740,830
$ 55,897,126
.
60 ANNUAL REPORT 2014
Notes to the Consolidated Financial Statements 20. Budget Information The budget information presented in these consolidated financial statements is based upon the 2014 Financial Plan Bylaw approved by Council on March 24, 2014. The chart below reconciles the approved budget to the budget figure reported in these consolidated financial statements.
Budget Amount Revenue Expenses Annual surplus per statement of operations Add: Transfers from reserves Amortization Less: Capital expenditures Capital contributed by developers Debt principal repayments Approved budget
$
89,974,593 (88,081,400) 1,893,193
7,677,207 12,300,000
(20,424,600) (1,000,000) (445,800) $ -
61 CITY OF PORT COQUITLAM
Notes to the Consolidated Financial Statements 21. Operations by Segment The City of Port Coquitlam provides a wide range of municipal services to its residents, businesses, industries, farms and other properties within its boundaries. Engineering structures and services, parks and recreation facilities, police, general government, fire and emergency, planning and development, water and sanitary sewer are the operating segments of the City. The City’s operations and activities are organized and reported by segments broadly based on departmental business units. The departments disclosed in the segmented information, along with the services they provide, are as follows: Engineering & Operations: Provides and maintains a number of essential municipal services and infrastructure including transportation, roads and drainage, environmental protection, solid waste collection, management of the City’s fleet and related engineering services. Parks & Recreation: Supports a sense of community and community well-being. Parks, trails, athletic fields, aquatics, skating, sports, fitness, active living, arts, culture, and the library along with general programming for people of all ages are services provided for community spirit and health. Police Services: Is a shared service with the City of Coquitlam that protects the community from criminal activity and ensures public safety. Reactive, response oriented policing is combined with strategic, proactive policing to deliver an effective, affordable policing model to the community.
REVENUE Taxation and other levies Utility charges Sale of services Contributions Investment income Other revenue
Engineering & Operations
Parks & Recreation
$
3,144,346 6,684,498 477,771 10,306,615
$
$
5,523,189 1,848,817 1,398,423 6,589,885 237,266
$
$
$
3,698,082 1,157,500 22,457 $ 4,878,039
Police Services
General Government
$
26,114 432,778 $ 458,892
$ 56,740,830 1,027,061 501,185 2,210,536 1,133,726 $ 61,613,338
EXPENSES Salaries and benefits Contracted and other services Supplies and materials Amortization Interest and bank charges Loss (gain) on disposals and writedowns
ANNUAL SURPLUS (DEFICIT)
9,539,244 2,279,305 2,923,649 1,600,199 (4,144)
$
79,874 12,504,035 17,034 153,849 -
$ 5,671,677 1,242,539 264,350 567,383 950,464 -
15,597,580
$ 16,338,253 $ 12,754,792
$ 8,696,413
$ (5,290,965)
$ (11,460,214) $ (12,295,900)
$ 52,916,925
62 ANNUAL REPORT 2014
Notes to the Consolidated Financial Statements General Government: Supports the primary services provided by the City. These support services include, legislative, finance, information systems, bylaw services, human resources, and communications. The segment is responsible for adopting bylaws and policy; levying and collecting taxes and utilities; acquiring, disposing and managing City assets; maintaining information technology systems and applications; ensuring effective financial management and communication; administering collective agreements and payroll; corporate training; and performance reporting. Fire & Emergency Services: The mandate of the Fire & Emergency Services department is to protect life, property and the environment through the provision of emergency response, inspections, code enforcement and public education. Development Services: Development Services is responsible for preparing land use plans, bylaws and policies for sustainable development of the City and for reviewing and approving new development and building permits and inspections. Water operations: The water utility is an essential service delivered by the City to its residents and businesses for the supply of high quality, potable water at flows and pressures suitable for fire protection. Sanitary sewer operations: The sanitary sewer utility is an essential service provided by the City to its residents and businesses for the collection and disposal of liquid wastes.
Fire & Emergency Services $
$
234 70,859 71,093
Development Services $
$
Water operations
Sanitary sewer operations
1,495,269 1,495,269
$
11,124,608 102,301 7,775 $ 11,234,684
$
$
2014
2013
- $ 56,740,830 7,908,222 19,032,830 9,391,106 7,063 8,885,325 2,210,536 1,712,588 7,915,285 $ 97,973,215
$
$
55,897,126 18,465,923 8,845,104 7,377,170 1,811,443 1,619,730 94,016,496
$
9,157,093 411,600 359,860 362,385 -
$
1,945,994 330,332 7,181 -
$
517,530 1,501,413 5,765,144 1,586,920 8,825
$
268,426 6,183,681 66,979 852,387 -
$
32,703,027 26,301,722 10,802,620 11,713,008 950,464 241,947
$
31,374,000 26,459,041 10,467,184 11,534,077 964,950 (415,477)
$
10,290,938
$
2,283,507 $
9,379,832
$
7,371,473
$ 82,712,788
$
80,383,775
$
(10,219,845)
$
(788,238)
1,854,852
$
543,812
$ 15,260,427
$
13,632,721
$
63 CITY OF PORT COQUITLAM
Schedule 1 – Statement of Operations by Fund FOR THE YEAR ENDED DECEMBER 31, 2014
REVENUES General taxes Utility charges Sale of services Contributions Investment income Other revenue EXPENSES Engineering and operations Parks and recreation Police services General government Fire and emergency services Development services Water operations Sanitary sewer operations EXCESS (DEFICIENCY) OF REVENUES OVER EXPENSES
General Water Sewer Fund Fund Fund $ 56,740,830 $ - $ 11,124,608 7,908,222 9,018,685 1,901,171 1,133,641 1,704,813 7,775 $ 70,499,140 $ 11,132,383 $ 7,908,222 $ 8,770,429 $
Capital Fund
Reserve 2014 2013 Fund $ - $ - $ 56,740,830 $ 55,897,126 19,032,830 18,465,923 372,421 9,391,106 8,845,104 6,984,154 8,885,325 7,377,170 1,076,895 2,210,536 1,811,443 1,712,588 1,619,730 $ 7,356,575 $ 1,076,895 $ 97,973,215 $ 94,016,496
-
$ 6,827,151
14,742,198 12,600,943 8,129,030
-
-
1,596,055 153,849 567,383
-
16,338,253 12,754,792 8,696,413
16,731,667 12,368,253 7,399,452
9,928,553
-
-
362,385
-
10,290,938
9,011,200
2,283,507
-
-
-
-
2,283,507
2,204,110
-
7,784,087
-
1,595,745
-
9,379,832
9,388,751
-
-
6,519,086
852,387
-
7,371,473
7,294,878
$ 56,454,660
$ 7,784,087
$ 6,519,086
$ 11,954,955
$
-
$ 82,712,788 $ 80,383,775
$ 14,044,480
$ 3,348,296
$ 1,389,136
$ (4,598,380)
$ 1,076,895
$ 15,260,427 $ 13,632,721
INTERFUND TRANSFERS - $ Current fund to Capital $ (1,770,762) $ Current fund to Reserve (11,090,182) (1,736,900) (936,300) Capital fund to Current 37,849 Fund Reserve fund to Current 1,312,313 48,762 154,410 Reserve fund to Capital $(11,510,782) $(1,688,138) $ (781,890)
$
-
$ 15,597,580 $ 15,985,464
- $
1,770,762 $ - 13,763,382 (37,849)
$
-
- (1,515,485) 11,658,866 (11,658,866) $ 13,391,779 $ 589,031
$
- $ -
-
-
-
- $
-
ANNUAL SURPLUS
2,533,698
1,660,158
607,246
8,793,399
1,665,926
15,260,427
13,632,721
ACCUMULATED SURPLUS, beginning of year
19,203,656
5,412,626
1,896,200
601,845,989
51,035,087
679,393,558
665,760,837
$ 21,737,354
$ 7,072,784
$ 2,503,446
ACCUMULATED SURPLUS, end of year
$610,639,388 $ 52,701,013
$694,653,985 $ 679,393,558
64 ANNUAL REPORT 2014
STATISTICAL SECTION (unaudited)
65 CITY OF PORT COQUITLAM
Average Home Municipal Taxes and Utilities Source: BC Ministry of Community, Sport & Cultural Development
TAX RANGE > $3,900 $3,600 - $3,899 $3,300 - $3,599 $2,800 - $3,299 $2,500 - $2,799
*2(0/5
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& !" !" " ' $% $ '
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*0(625 *0(445 *0(40. *0(305 *0(303 *0(240 *0(16/ *0(1-6 *0(004 *0(/-3 *0(-14 *0(-01 */(624 */(562 */(55- */(402 */(40- *-
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66 ANNUAL REPORT 2014
Community Statistics Assessed Values for General Municipal Purposes Dollars (000,000)
Source: BC Assessment Authority
Population Estimates People
Source: BC Ministry of CiĆ&#x;zens’ Services
67 CITY OF PORT COQUITLAM
Household Costs of City Services Estimated Household Costs of City Services for an Average Single Family Residence Source: City of Port Coquitlam Finance Department
%,.(#**
!
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68 ANNUAL REPORT 2014
Property Taxes Property Taxes Levied and Collected Source: City of Port Coquitlam Finance Department
Thousands 2009 City of Port Coquitlam - tax Regional District BC Assessment Finance Authority School District BC Transit Authority
$
43,613 709 765 2 22,940 5,232
2010 $
46,926 744 786 2 23,346 5,384
2011 $
49,594 791 814 2 23,853 5,598
2012 $
51,408 755 821 3 24,369 5,546
2013 $
54,066 806 846 3 25,464 5,604
2014 $
54,501 789 851 3 26,425 5,607
TOTAL CURRENT TAXES LEVIED
73,261
77,188
80,651
82,902
86,789
88,176
Current tax collected ($) Current tax collected (%)
71,776 97.97%
75,306 97.56%
79,035 98.00%
81,158 97.90%
85,323 98.31%
86,872 98.52%
Tax arrears beginning of year
1,987
2,503
2,515
2,182
2,144
2,227
Tax arrears collected ($) Tax arrears collected (%)
1,449 72.92%
1,765 70.52%
1,696 67.43%
1,354 62.04%
1,376 64.18%
1,529 68.66%
TOTAL TAX COLLECTIONS Έ$Ή
$
73,225
$
77,071
$
80,731
$
82,512
$
86,699
$
88,401
Taxes, Major Levies and Other Government Collections Dollars
Source: City of Port Coquitlam Finance Department
#$" """ """ "" #"" """ """ "" (" """ """ "" '" """ """ "" &" """ """ "" $" """ """ "" $"#"
$"##
$"#$
$"#%
$"#&
69 CITY OF PORT COQUITLAM
Taxes and Revenues Revenues by Source Dollars
Source: City of Port Coquitlam Finance Department
#$" """ """ #"" """ """ (" """ """ '" """ """ &" """ """ $" """ """ " $"")
$"#"
$"##
$"#$
$"#%
$"#&
Building Permits and Total Tax Collection Dollars
Source: City of Port Coquitlam Finance Department
!
70 ANNUAL REPORT 2014
Expenses Expense by Function Dollars
Annual Totals 2010 $74,589,869
#! !!! !!!
2011 $76,802,516
2012 $80,005,533
2014 $82,712,788
2013 $80,383,775
"% !!! !!!
Source: City of Port Coquitlam Finance Department
"# !!! !!!
& !!! !!!
$ !!! !!!
!
Expense by Object Dollars
Annual Totals 2010 $74,591,879
!
2011 $76,804,527
2012 $80,007,545
2013 $80,385,788
2014 $82,714,802
!
Source: City of Port Coquitlam Finance Department
! !
71 CITY OF PORT COQUITLAM
Capital Expenditures Capital Expenditures and Net Debt Per Capita Dollars
Source: City of Port Coquitlam Finance Department
Capita per capita
Net debt per capita
Capital Expenditures by Source Dollars
Source: City of Port Coquitlam Finance Department
72 ANNUAL REPORT 2014
Surplus, Reserve and Other Accounts Surplus, Net Financial Assets and Debt Dollars
Source: City of Port Coquitlam Finance Department
Accumulated Surplus Dollars
Source: City of Port Coquitlam Finance Department
Summary of Major Statutory Reserve Funds Dollars
Source: City of Port Coquitlam Finance Department
CITY OF PORT COQUITLAM
73
2014 Total Revenue and Expenses 2014 Revenue "!'
Total Revenue: $94 million
! ' #' "' !'
$#'
2014 Expenses Total Expenses: $82.7 million
!& #&
&
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74 ANNUAL REPORT 2014
Principal Taxpayers and Tax Exemptions 2014 Principal Corporate Taxpayers REGISTERED OWNER Canadian Pacific Railway 0697788 BC Ltd Artis Poco Place Ltd 1510060 Ontario Inc 629654 BC Ltd Mondi Properties Costco Wholesale Canada Ltd RPMG Holdings Ltd Sysco Canada Inc De Gobbi Industries Ltd Westlo Financial Corp Consolidated Fastfrate (BC) Holdings Inc Home Depot Holdings Inc Runnel Holdings Inc Yen Hoy Enterprises Ltd Jim Pattison Developments Esco Limited 566203 BC Ltd Sears Canada Inc Vansea Holdings Ltd Onni Development Corp Kebet Holdings Ltd 677129 British Columbia Ltd Sunrise Investments Inc 0912890 BC Ltd.
PRIMARY PROPERTY Railyard Shopping Centre Shopping Centre Shopping Centre Warehouse Distribution Miscellaneous Retail Sales Miscellaneous Food Distributor Miscellaneous Shopping Centre Shipping Company Retail Sales Shopping Centre Shopping Centre Retail Sales Manufacturing Miscellaneous Distributor Miscellaneous Miscellaneous Miscellaneous Miscellaneous Miscellaneous Shopping Centre
TAXES LEVIED $ 1,344,068 1,114,251 546,670 498,918 488,073 433,884 378,455 366,501 363,293 329,191 321,297 290,322 280,530 267,990 267,990 265,067 260,492 254,898 254,348 226,632 224,586 221,997 210,331 201,239 160,813 $ 9,571,836
2014 Permissive Property Tax Exemptions NAME Port Coquitlam Heritage and Cultural Society Hyde Creek Streamkeepers Port Coquitlam Kinsmen Club Tri-City Women's Centre Victory Baptist Church Southside Baptist Church Coquitlam Chinese Evangelical Free Church Port Coquitlam Pentecostal Assembly Northside Foresquare Gospel Vancouver Bible Presbyterian Port Coquitlam Seniors Housing Hope Lutheran Church Fellowship Deaconry Association of British Columbia Tri-City Islamic Centre BC Conference of Mennonite Brethren Church Foresquare Gospel Hawthorne Care Centre Archbishop Carney Roman Catholic Highschool Our Lady of Assumption Roman Catholic Church and Elementary
TAX RELIEF $ 2,466 5,495 6,548 7,807 8,849 10,850 12,827 13,546 20,028 24,869 25,205 26,721 27,199 27,693 28,865 30,324 74,447 159,202 163,034 $ 675,973
75 CITY OF PORT COQUITLAM
T HE COR POR AT ION OF T H E C I T Y O F
Tel: 604.927.5411 Fax: 604.927.5360 info@portcoquitlam.ca 2580 Shaughnessy Street Port Coquitlam, British Columbia Canada V3C 2A8
www.portcoquitlam.ca