2015 ANNUAL REPORT
T HE COR POR AT ION OF T H E C I T Y O F
BRITISH COLUMBIA, CANADA
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2015
Working Smarter
Table of Contents 3
INTRODUCTORY SECTION
59
STATISTICAL SECTION (UNAUDITED)
4 5 6 7 8 9 10 11 12 13
Message from the Mayor Message from the Chief Administrative Officer City of Port Coquitlam Organizational Chart Port Coquitlam City Council City Snapshot Economic Snapshot 2015 Highlights Giving Back Strategic Direction Letter of Transmittal
60 61
17 18 20 22 24 26 28 30 32 34
DEPARTMENT OVERVIEWS Office of the Chief Administrative Officer Corporate Support Development Services Engineering & Public Works Finance Fire & Emergency Services Human Resources Recreation RCMP
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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 2015 Revenue 2015 Expenses 2015 Principal Corporate Taxpayers 2015 Permissive Property Tax Exemptions
38 39 40 41 42
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
43 58
61 62 63 63 64 64 65 65 66 66 67 67 67 68 68 69 69
A Year in Pictures The City of Port Coquitlam would like to thank the photographers whose images brought life to the pages of our 2015 Annual Report.
This report is printed on paper that is FSC certified and made from 100% post-consumer waste.
T HE COR POR AT ION OF T H E C I T Y O F
BRITISH COLUMBIA, CANADA
2015 ANNUAL REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31, 2015
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, 2014. This is the City’s 10th 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 2015 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 18th 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.
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Annual Report 2015
Introductory Section
City of Port Coquitlam
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Message from the Mayor We’ve all heard the adage “Work smarter, not harder.” It’s a reference to finding ways to be as efficient as possible, and to do more (or the same) with less. As the theme of our 2015 annual report suggests, we’ve embraced this concept at the City of Port Coquitlam. This report includes many examples of how we were “Working Smarter” in 2015, from reducing duplication to cutting red tape. Some of this is relatively new ground for a city. When people think about government, efficiency isn’t usually the first thing to come to mind. Council is proud of the City’s willingness to ask the hard questions and to look closely at both why we do what we do, and how we do it. The results have included refinements to our processes, such as streamlined fire inspections and a more user-friendly budget, as well as more significant operational changes, such as the shifting of parks maintenance from the Recreation Department (formerly Parks & Recreation) to the Engineering & Public Works Department (formerly Engineering & Operations), which was already doing similar work in other parts of the City. Whether the changes are large or small, the underlying goal is to improve our service to the community. It’s important to note, however, that we’re not just making change for the sake of change. While we’re willing to look closely at everything we do, if something is working well, we leave it alone.
The Mayor in the Veterans Park gardens in front of Port Coquitlam City Hall.
You can expect us to continue to apply this approach to our upcoming work, such as our new Community Recreation Complex and our in-depth review of our capital planning process. On behalf of the City of Port Coquitlam and City Council, I’m pleased to share our 2015 accomplishments in this annual report.
Greg Moore Mayor
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Annual Report 2015
Message from the Chief Administrative Officer All families know what it’s like to balance your wants and needs with the funds you have available. Do you buy the big screen TV and hope you can get another winter out of the furnace? Do you upgrade the kitchen or set money aside for a roof repair? The challenges we face as a local government are similar, but on a larger scale. Do we repair existing, aging roads and sidewalks or do we install additional sidewalks and streetlights? Do we invest in upgrading existing buildings or do we demolish and build something new? There’s a lot to juggle, and we’re constantly reviewing priorities to make sure we’re spending our money in the right places. These days, “Working Smarter” – the theme of our 2015 annual report – has become an imperative for cities, as we struggle to meet rising costs with increased demands for service. To keep taxes down, it has become critical that we find efficiencies, generate new revenue and make operational changes that will provide the capacity we need to tackle the challenges of the future, such as the ongoing and increasing demands related to our aging infrastructure. In other words, we can’t keep doing things the way they’ve always been done. While this prospect may be a bit unsettling, ultimately we’ll be a more efficient organization that is focusing our energies and our resources – financial and people – where they make the most impact.
The CAO on “Shady Lane,” the Donald Street trail he takes to work at City Hall every day.
On the positive side, we’re already seeing tangible results from some of the changes we’ve made through our Continuous Improvement Assessments. For example, the in-depth review of our City fleets led to savings of at least $85,000 in the first year.
As we continue our journey, we’ll keep revisiting our priorities – all the while maintaining communications both within our organization and with the community to make sure our decisions and actions reflect what’s most important to you.
John Leeburn, MBA Chief Administrative Officer
City of Port Coquitlam
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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
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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 & PUBLIC WORKS
FINANCE
Kristen Meersman, P.Eng, MBA Director
Karen Grommada, CPA, CMA Director
Divisions: Administration; Capital Projects; Infrastructure Planning; Public Works (incl. water, sewer, drainage, solid waste utilities)
Divisions: Common Services; Finance Services (purchasing, accounting, financial planning, payroll, revenue services)
FIRE & EMERGENCY SERVICES
HUMAN RESOURCES
Nick Delmonico Fire Chief/City Emergency Coordinator
Steve Traviss, CHRP Director
Divisions: Administration; Emergency Preparedness; Fire Suppression; Training; Protective Services & Public Education
Functions: Benefits & Compensation, Occupational Health & Safety; Labour Relations; Recruitment; Training & Development
RECREATION
RCMP
Lori Bowie, Bsc, MA Director
Sean Maloney Superintendent, Officer-in-Charge
Divisions: Recreation Services; Community Services; Facility Services
Contracted service
Municipal Auditors
Bankers
KPMG LLP
Toronto Dominion Bank
Annual Report 2015
City Council
Port Coquitlam City Council 2014-2018: (left to right) Cllr. Laura Dupont, Cllr. Mike Forrest, Cllr. Brad West, Mayor Greg Moore, Cllr. Darrell Penner, Cllr. Dean Washington, Cllr. Glenn Pollock.
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.
City of Port Coquitlam
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.
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City Snapshot Located in the
heart of Metro Vancouver, British Columbia
29.17 km2
Incorporated 19 1 3
March 7, 1913
total land area
2015 DEMOGRAPHICS
61,000
3,438
271
23,300
people
business licences
hectares of parks & trails
private dwellings
GOVERNANCE City Council
WHAT PORT COQUITLAM IS KNOWN FOR PoCo Pride
Leader in waste management
Traboulay PoCo Trail
Family-friendly neighbourhoods
7 members of Council provide leadership, set policies and establish budgets
Structure Chief Administrative Officer Hometown of Terry Fox
Using technology to engage citizens
Corporate Support
Quaint downtown & small-town charm
Development Services Engineering & Public Works 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.
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Fire & Emergency Services Human Resources Recreation
MISSION
RCMP
Annual Report 2015
Economic Snapshot CONSTRUCTION PERMIT VALUE
Total $ value – new construction Total $ value – improvements
Business licences issued
$120 million $80 million $60 million
2013 3,178 2014 3,261
$40 million $20 million 2011
2012
2013
NEW CONSTRUCTION 2015: $94.2 MILLION Structure or pool ($0.09 million)
2014
2015
IMPROVEMENTS 2015: $12.7 MILLION
Institutional ($9 mill) Multi-familyy ($52.9 mill))
Institutional ($1.3 mill) Multi-family ($0.45 mill) Single/two family ($1.6 mill) Accessory ($0.07 mill)
Industrial ($4.5 mill)
Industrial ($14.8 mill) Commercial ($3.5 mill) Accessory ($0.2 mill) Single/two family ($13.7 mill)
Commercial ($4.8 mill)
POPULATION AND DWELLINGS
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
Source: Statistics Canada 2006 and 2011 Census Note: Census population estimates are not consistent with municipal and regional estimates.
All 0-14 years 15-24 years 25-44 years 45-64 years 65+ years
City of Port Coquitlam
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
3000
Top sectors based on 2015 licences
Home-based (764)
General (761)
Out-of-town Gen. Contractor (664)
Manufacturing (250)
Professional Person (196)
Retail (169)
% 100.0%* 17.4% 14.1% 28.0% 30.4% 10.1%
• 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
AGE DISTRIBUTION Male
2000
BC
56,342 52,687 6.9
Ages
2015 3,438 0 1000
RESIDENT STATISTICS
Port Coquitlam
Population in 2011 Population in 2006 2006 to 2011 population change (%)
Land area (square km)
* Percentage distribution based on published totals, both sexes. Source: Statistics Canada 2011 Census.
Source: Bylaw Services
2011 3,117 2012 3,204
$100 million
$0
BUSINESS STATISTICS
% 100.0%* 15.3% 13.2% 29.0% 29.0% 13.5%
• 55% have some post-secondary education • Median household income: $72,563 • 66.2% are employed Source: Statistics Canada, 2011
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2015 Highlights COMMUNITY REC COMPLEX • Hired a project manager. • Awarded $12.5 million in federal infrastructure funds. • Issued request for proposals for design/construction.
CART LOCK RECOGNITION
GRANT MONEY FOR PARKS • Awarded $1.9 million in federal and provincial funds to create Blakeburn Lagoons Park. • Awarded $125,000 in federal funds for Sun Valley Park upgrades.
• Responded to a major fire downtown by mobilizing all departments to protect lives and property, restore services, help businesses and keep the public informed.
USER-FRIENDLY BUDGETING • Developed a more userfriendly budget structure as part of an ongoing effort to make budgeting process more accessible and accountable.
GROWING THE COMMUNITY • Issued building permits valued at more than $100 million. • Improved building inspection efficiency with mobile technology and online scheduling.
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million
PARK GRANTS
LIONS PARK REOPENS
• Received an honourable mention from the Union of BC Municipalities for development of a simple but effective wildlife-resistant waste cart lock.
SHAUGHNESSY STREET FIRE
$2+
• Completed a major renovation, including a new playground, washroom and promenade. • Rated by Vancouver Sun readers as one of best playgrounds in Metro Vancouver.
CITY INFO GUIDE • Released a colourful new 36-page City Info Guide to provide information about the City to residents, visitors, businesses and investors. Pick up a copy today!
ECONOMIC DEVELOPMENT • Held the first PoCo BizAlley showcase at the May Day Festival, filling all spots. • Continued to improve the PoCoWorks! job board, PoCo Biz Awards and other programs.
WASTE-SORTING TOOLS • Introduced new wastesorting tools, including an online Sort it Right Search Tool and comprehensive Sort it Right printed flipguide, available at www.portcoquitlam.ca/waste.
Annual Report 2015
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. Charitable efforts in 2015 included: •
Port Coquitlam firefighters raised $40,254 and donated more than 1,600 hours of time to support a variety of causes: · $15,534 for prostate cancer research and men’s health initiatives through Movember.
Projects for Boots on the Ground, a volunteer initiative by City staff, included a wheelchair-accessible gravel path for the Hyde Creek Education Centre and Hatchery. ·
$5,400 for the BC Professional Fire Fighters Burn Fund through Christmas tree chipping and the Canada Day salmon barbecue. · $14,000 for Muscular Dystrophy Canada through a boot drive. · $5,500 for the BC Burn Unit through a slowpitch tournament beer garden and cook shack. · Volunteered for the Terry Fox Foundation, BC Professional Fire Fighters Burn Fund, PoCo youth hockey, Art Knapps and Sorroptomist International. • The annual United Way campaign raised $6,923 through 50/50 draws and other fundraisers. • Staff participation in Jeans Day raised $1,286.98 for BC Children’s Hospital. • Staff donated their time to several community improvement projects through the Boots on the Ground initiative.
Port Coquitlam firefighters held the third largest Movember Foundation fundraiser in Canada, raising $15,534 for prostate cancer research and men’s health initiatives.
City of Port Coquitlam
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Strategic Direction The work of the City’s departments (described in the Department Overviews, page 17) is aligned with the following:
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. 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. Targeting a few priorities at a time enables the City to meet its goals more effectively. Go to www.portcoquitlam.ca/vision2020 for more information.
MISSION: Port Coquitlam is a happy, vibrant, safe community of healthy engaged residents and thriving businesses supported by sustainable resources and services.
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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. Economic Strength – Addresses business strength, employment, access/transportation and agricultural land.
Community Well-being – Addresses community safety, parks/natural areas, waste management and utility services.
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 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.
Annual Report 2015
Letter of Transmittal
2580 Shaughnessy Street, Port Coquitlam BC, Canada, V3C 2A8 5FM t 'BY UBYFT!QPSUDPRVJUMBN DB
LETTER OF TRANSMITTAL
May 25, 2016 Mayor and Council City of Port Coquitlam We maintained our focus on continuous improvement in 2015, as we continued to look for ways to improve how we work and provide service in both large ways and small. From a process and reporting standpoint, one of the biggest impacts has come from the ongoing implementation of the Agresso Financial System, which is changing the way we do business. We have automated processes, decreased paper-moving and increased electronic workflow. This has required a lot of change management for both staff and our customers. Through Agresso and other measures, we are working to meet the increased demand for new processes and reporting tools that provide departments with better access to timely financial information and analysis. Ultimately, this will help facilitate better strategic decisions. Another significant change has come from the work of the Budget & Infrastructure subcommittee, established to review our budgeting process and to develop a more sustainable model for planning and funding infrastructure. Based on its feedback, we presented the 2016-2020 Financial Plan in a form that is more easily understood by both Council and taxpayers. In 2016, the subcommittee will continue to develop a long range capital plan that defines what projects will be undertaken and to what standard, and includes a strategy for funding infrastructure. Overall, the City’s work and finances in 2015 once again took direction from the Vision 2020 Corporate Strategic Plan as well as Council's three priorities: developing the organization and increasing employee engagement in order to improve customer service; maximizing the life of infrastructure assets and saving for their replacement; and planning for a Community Recreation Complex on 15 acres of City land that includes the aging Port Coquitlam Recreation Complex. It is my pleasure to present to you the City’s Financial Statements and Annual Report for the fiscal year ending December 31, 2015. 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 2015 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.
www.portcoquitlam.ca
City of Port Coquitlam
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Letter of Transmittal
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, 2015, and the results of 2015 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. 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 establishing the new Budget & Infrastructure sub-committee addressed earlier. Also, as shown in Note 16 - Restricted Reserves, funds are slowly collecting in long-term reserves to address the infrastructure gap. The difference between 2015 revenues and 2015 expenses results in a 2015 annual surplus amount of $13.9 million (2014 - $15.3 million) and increases the City’s accumulated surplus from the 2014 balance of $690.1 million up to $704.1 million. It is, however, important to note that not all of the City’s accumulated surplus relates to funds that can be spent on future projects. Of the $704.1 million ending balance in 2015, only the $101.2 million related to restricted and unrestricted reserves is available for use. The remaining $602.9 million relates to the City’s equity in tangible capital assets and other non-financial assets. Notes 15 through 17 of the consolidated financial statements provide additional breakdown of the various components of accumulated surplus. 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. Improved efficiency and reduced duplication were achieved by restructuring the Engineering & Public Works department to include park maintenance and planning functions. While the Budget & Infrastructure subcommittee develops a long-term capital plan model, the primary focus on capital projects is on essential maintenance, committed projects and multi-year initiatives.
www.portcoquitlam.ca
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Annual Report 2015
Letter of Transmittal
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 2015, the City issued building permits for projects with a total value of $107 million, slightly less than 2014. 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
City of Port Coquitlam
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2015 Terry Fox Hometown Run
16
Annual Report 2015
Department Overviews
City of Port Coquitlam
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18
Annual Report 2015
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
2015 PERFORMANCE MEASURES
Community Recreation Complex
• Oversaw Recreation Complex planning team in hiring a project manager, applying for and receiving federal infrastructure funding, and tendering a request for design/construction proposals.
Economic Strength
• Worked with Mayor to secure a five-year contract to host the PoCo Grand Prix as part of the BC Superweek road cycling series. • Oversaw negotiations to enable the completion of Nicola Avenue to link the Dominion Triangle road network.
Strategic Service Delivery and Organizational Development
• Oversaw completion of new Continuous Improvement Assessments (CIAs) to improve efficiency and effectiveness, and implementation of recommendations for earlier CIAs. • Restructured the former Engineering & Operations and Parks & Recreation departments to improve efficiency and reduce duplication. • Worked with Human Resources on initiatives intended to build the City team at all levels, get input from staff, and keep staff informed about City projects.
Sustainable Future
• Oversaw revenue generation initiatives such as advertising, sponsorship, and marketing of City wildlife-resistant waste cart locks. • Maximized the benefit for the City when negotiating a five-year agreement for the Shaw Go WiFi service at City facilities and Gates Park.
STRATEGIC OUTCOME OR COUNCIL PRIORITY
2016 GOALS
Community Recreation Complex
• Work with Council and Recreation Complex planning team to finalize the design and financing strategy.
Strategic Service Delivery and Organizational Development
• Continue to oversee and develop initiatives that improve efficiency and effectiveness (such as Continuous Improvement Assessments). • Review new process used to develop 2016 budget and adjust as necessary for 2017.
Sustainable Future
• Oversee and act upon existing and new initiatives for revenue generation, including marketing of City wildlife-resistant waste cart locks.
For more information about the Office of the CAO, visit www.portcoquitlam.ca/CAO.
City of Port Coquitlam
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20
Annual Report 2015
Corporate Support Corporate Support brings together services and functions that support the organization as a whole.
KEY RESPONSIBILITIES • Communications, legislative and administrative functions • Bylaw enforcement (including community policing) • Technology and online services • Council meetings, City records and elections • City land holdings
DIVISIONS • • • •
Bylaw Services Communications & Administrative Services Corporate Office Information Services
STATS & FACTS • • • • • • • • •
Website visits: 632,670 Facebook followers: 7,390 Twitter followers: 4,618 Freedom of Information requests: 61 Bylaws processed: 44 IS customer support requests: 2,235 PCs replaced: 12 (5%) Business licences issued: 3,438 Dog licences issued: 4,432
STRATEGIC OUTCOME OR COUNCIL PRIORITY
2015 PERFORMANCE MEASURES
Community Well-being
• Completed major renovation of the Mary Hill Community Police Station and began renovations of Coast Meridian station. • Improved regulation of dangerous and aggressive dogs.
Economic Strength
• Began development of the Shop PoCo searchable online business directory of licensed Port Coquitlam businesses.
Organizational Development
• Gave City Council members a behind-the-scenes look at City services during PoCo at Work Week in June.
Strategic Service Delivery
• Reviewed and adjusted agenda processes to reduce paper consumption. • Released second edition of the City Info Guide, a comprehensive source of information for residents, businesses and visitors. • Introduced payroll and human resources modules for the new Agresso cloudbased financial system (year two of three-year rollout).
STRATEGIC OUTCOME OR COUNCIL PRIORITY
2016 GOALS
Community Well-being
• Support community safety with a new plan and protocols for communications during emergencies, and new regulations for homeless camps in parks.
Economic Strength
• Improve customer service in fire and bylaw inspections of businesses.
Strategic Service Delivery
• Update City website to ensure it fully integrates with mobile devices and existing and new online services. • Modernize Freedom of Information processes, including online requests. • Develop 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
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22
Annual Report 2015
Development Services Development Services guides the growth and development of the community.
KEY RESPONSIBILITIES • Manage the growth and development of the City. • Institute sustainable and integrated land use and development policies. • Provide guidance on land use and development matters. • Promote economic development. • Liaise with First Nations, Business Improvement Association and Chamber of Commerce.
STATS & FACTS • Planning applications processed: 81 • Engineering development applications processed: 752 • Building permits issued: 323 · Construction value: $107 million · Number of new dwelling units: 388
DIVISIONS • Building (including Plumbing) • Development Engineering • Planning
STRATEGIC OUTCOME OR COUNCIL PRIORITY
2015 PERFORMANCE MEASURES
Community Recreation Complex
• Managed the planning for a new Community Recreation Complex downtown to replace aging infrastructure.
Economic Strength
• Helped promote local businesses with a new BizAlley business showcase at the May Day Festival, and the third annual PoCo Best Biz Awards. • Issued building permits in a timely manner for projects valued at over $100 million.
Sense of Community
• Completed a Heritage Inventory and Register awareness program.
Strategic Service Delivery
• Increased efficiency by introducing mobile technology for engineering inspections.
Sustainable Future
• Consulted the public and provided information to assist Council in selecting the alignment of a future north-south arterial road in the north-east sector. • Began update of the Official Community Plan, including completing a Housing Action Plan to ensure future new housing meets community needs.
STRATEGIC OUTCOME OR COUNCIL PRIORITY
2016 GOALS
Community Recreation Complex
• Manage the planning for the new Community Recreation Complex, including finalizing the design and public consultation.
Strategic Service Delivery
• Improve efficiency and customer service with online scheduling of building inspections.
Sustainable Future
• Continue the Official Community Plan update, including Housing Action Plan implementation and review of agricultural lands, commercial lands, neighbourhood planning and infrastructure needs. • Update the Building Bylaw for consistency with building regulations across B.C. • Revise the Subdivision Servicing Bylaw in consultation with local developers.
For more information about Development Services, visit www.portcoquitlam.ca/development.
City of Port Coquitlam
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Annual Report 2015
Engineering & Public Works Engineering & Public Works provides and maintains essential municipal services and infrastructure.
KEY RESPONSIBILITIES • • • • • • • •
Plan and manage City infrastructure projects. Plan and operate the City transportation network. Maintain the PoCoMAP geographic information system. Collect garbage, recycling and green waste. Provide and maintain City parks, trails and open spaces. Manage the City fleet. Provide water, sewer and drainage services. Provide engineering customer services.
DIVISIONS • • • •
Administration Capital Projects Infrastructure Planning Public Works (including streets, parks, fleet, and solid waste, sewer, water and drainage utilities)
STATS & FACTS • Public requests and inquiries: 5,232 • PoCoMAP public visits: 19,661 • Waste collection: · Single-family units: 14,434 · Multi-family units: 4,486 · Institution or business: 241 • Waste diverted from landfill: 66% diversion rate • Water supplied: 9.1 million cubic metres • Capital projects: 29 projects and $4.88 million in expenditures • PoCo Waste-Line registrants: 4,465
STRATEGIC OUTCOME OR COUNCIL PRIORITY
2015 PERFORMANCE MEASURES
Community Well-being and Sustainable Future
• Distributed more than 12,000 City-designed wildlife-resistant waste cart locks, and earned an honourable mention for the project from the Union of BC Municipalities. • Received $1.9 million in provincial and federal funding to enable rehabilitation of the decomissioned Blakeburn Lagoons settling ponds into a future park. • Addressed rising waste disposal costs by focusing on waste mis-sorting, including monitoring carts and launching a Sort it Right! campaign with Communications that included an online waste-sorting tool and user-friendly print and online materials.
Strategic Service Delivery and Sustainable Future
• Improved efficiency and reduced duplication by restructuring department to include park maintenance and planning functions.
Sustainable Future
• Purchased a City street sweeper to improve efficiency and service to citizens. • Completed the Burns Road repaving and watermain project that enhanced water quality and pressure while improving the road surface in a growing area.
STRATEGIC OUTCOME OR COUNCIL PRIORITY
2016 GOALS
Community Well-being
• Begin design for the rehabilitation of future Blakeburn Lagoons park site.
Economic Strength
• Improve access by completing Nicola Avenue connection to link the Dominion Triangle road network, and design upgrades to Pitt River Road / McLean Avenue.
Sustainable Future
• Support the Budget & Infrastructure advisory committee in developing a longrange capital planning model. • Conduct structural repairs on the Coquitlam River Bridge on Lougheed Highway to add five years to the bridge’s lifespan. • Review waste collection zones for opportunities for efficiency.
For more information about Engineering & Public Works, visit www.portcoquitlam.ca/engineering.
City of Port Coquitlam
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Annual Report 2015
Finance Finance provides financial services to citizens, City departments and City Council.
KEY RESPONSIBILITIES • Provides financial planning, accounting, payroll, purchasing and revenue collection services. • Administrates operating funds. • Risk management (insurance and claims administration).
DIVISIONS • Common Services • Finance Services · Accounting · Financial Planning · Payroll · Purchasing · Revenue Services
STATS & FACTS • • • •
Annual budget: $97 million Billing and collection value: $78 million Tax customers: 20,110 MyPortCoquitlam registrants: · Business Licences 22 · Development Services 27 · Dog Licences 147 · Property Taxes 1,002 · Water and Sewer 1,075 · Electronic Home Owner Grants 8,020
STRATEGIC OUTCOME OR COUNCIL PRIORITY
2015 PERFORMANCE MEASURES
Infrastructure and Sustainable Future
• Continued to set aside an additional 1% of property tax revenue for infrastructure replacement, as well as 0.5% for the new Community Recreation Complex.
Strategic Service Delivery
• Earned Government Finance Officer Association Awards for budgeting and annual reporting. • Worked with Communications to continue to promote MyPortCoquitlam for online property and tax bills access. • Worked with Communications to collect and review feedback on the 2015 budget from more than 850 residents. • Worked with Budget & Infrastructure advisory committee to develop a more userfriendly, transparent presentation for the 2016 budget.
Sustainable Future
• Continued to implement the new Agresso cloud-based financial system (year two of three-year rollout), replacing outdated system.
STRATEGIC OUTCOME OR COUNCIL PRIORITY
2016 GOALS
Infrastructure and Sustainable Future
• Assist in the Budget & Infrastructure advisory committee’s in-depth review of City’s long-term capital planning. • Finalize a funding strategy for the new Community Recreation Complex.
Strategic Service Delivery
• Earn Government Finance Officer Association awards for budgeting and annual reporting. • Introduce a new purchasing policy based on recommendations from last year’s Continuous Improvement Assessment.
Sustainable Future
• Implement a new payroll system through the new cloud-based financial system.
For more information about Finance, visit www.portcoquitlam.ca/finance.
City of Port Coquitlam
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Annual Report 2015
Fire & Emergency Services Fire & Emergency Services provides for the preservation of life, property and the environment in Port Coquitlam.
KEY RESPONSIBILITIES • • • •
Respond to fire, medical and other emergencies. 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 Emergency Preparedness Fire Suppression Training Protective Services & Public Education
STATS & FACTS • • • • • • • •
Total calls: 4,014 Total fires: 232 Hazardous materials calls: 68 Medical calls: 2,132 Motor vehicle accidents: 355 Public service/assist: 135 Fire bylaw inspections: 2,862 Emergency preparedness course attendees: 707 • Emergency preparedness volunteer hours: 1,861
STRATEGIC OUTCOME OR COUNCIL PRIORITY
2015 PERFORMANCE MEASURES
Community Well-being
• Improved the City’s emergency preparedness by hosting a business pre-disaster recovery planning workshop, producing a business emergency preparedness toolkit, and continuing to offer free community courses.
Community Well-being and Strategic Service Delivery
• Improved the business fire inspection process and safety with changes that provide incentives for compliance and automatic fire sprinkler systems. • Completed a tender process and took delivery of a new Pierce quint pumper truck with 75-foot ladder to increase capacity and replace aging equipment.
Community Well-being and Sustainable Future
• Renovated and expanded Fire Hall #2, including addition of living quarters, to meet the growing need for service on the north side.
Strategic Service Delivery
• Worked with Human Resources to complete negotiations with IAFF local 1941 for a new collective agreement for firefighters. • Moved dedicated fire software to a workspace model for more efficient access by multiple users.
STRATEGIC OUTCOME OR COUNCIL PRIORITY
2016 GOALS
Community Well-being
• Implement a Disaster Recovery Plan to help the community recover more quickly following a disaster.
Community Well-being and Strategic Service Delivery
• Review emergency response, staffing and training for efficiency and effectiveness.
Sustainable Future
• Continue to focus on repair and maintenance of fire facilities. • Continue to work to address the impact of increasing medical response calls.
For more information about Fire & Emergency Services, visit www.portcoquitlam.ca/fire.
City of Port Coquitlam
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30
Annual Report 2015
Human Resources Human Resources serves both internal and external customers by providing specialized advice and assistance in all facets of people management.
STATS & FACTS
KEY RESPONSIBILITIES • Champion City-wide initiatives that build on a positive and inclusive organizational culture, which places employees in the best position to provide excellent support and service to citizens and the business community. • 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.
• Total number of employees: 568 (290 full-time, 82 part-time, 196 casual) • Average employee age: · Casuals: 29.9 years · Part-time: 33.93 years · Full-time: 46.39 years · Fire suppression: 39.09 years · Fire non-suppression: 45.38 years · Exempt (non-union): 50.04 years • Average length of service: 9.97 years • External hires: 62 • Internal appointments: 62
STRATEGIC OUTCOME OR COUNCIL PRIORITY
2015 PERFORMANCE MEASURES
Economic Strength and Strategic Service Delivery
• Continued to improve the City jobs webpage and PoCoWorks! Job Board that lists jobs with the City as well as local businesses.
Organizational Development and Strategic Service Delivery
• Worked with departments to complete in-depth evaluations (Continuous Improvement Assessments) of shared services, and customer service in inspection and compliance roles. • Continued partnership with BCIT to offer its Associate Certificate in Leadership program on-site to City staff.
Strategic Service Delivery
• Earned a $60,000 rebate from WorkSafe BC for the City’s highest score to date for Occupational Health and Safety standards. • Worked with Fire & Emergency Services to complete negotiations with IAFF local 1941 for a new collective agreement for firefighters.
STRATEGIC OUTCOME OR COUNCIL PRIORITY
2016 GOALS
Organizational Development and Strategic Service Delivery
• Support Continuous Improvement Assessment of business licensing and recreation programming. • Commence collective bargaining with CUPE staff, and work with CUPE to ensure union jobs meet current and future City needs. • Conduct an employee engagement survey to engage and collect input from City staff.
Strategic Service Delivery
• Investigate and make recommendations for a new Living Wage Policy for City staff and contractors.
For more information about Human Resources, visit www.portcoquitlam.ca/HR.
City of Port Coquitlam
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32
Annual Report 2015
Recreation The Recreation Department promotes healthy lifestyles, social engagement and community development.
KEY RESPONSIBILITIES • Provide recreation, sport, fitness, social, arts and culture programs, services and special events. • Coordinate volunteer opportunities and training. • Manage facility reservations for recreation facilities. • Support community organizations aligned with department services, and administer grant programs. • Manage building maintenance and lifecycle management for 26 City facilities.
DIVISIONS • Recreation Services • Community Services • Facility Services
STATS & FACTS • Courses offered: 6.599 • Program registrations: 29,9788 · Online registrations: 13.120 • Program hours provided: 32.010 • Drop-in program participants: 133,746 • Volunteers: 324 • Library items borrowed: 355,074 • Library visits: 232,597 • Residents with active cards identifying Terry Fox as home library: 15,558
STRATEGIC OUTCOME OR COUNCIL PRIORITY
2015 PERFORMANCE MEASURES
Community Recreation Complex
• Participated in the planning of a new Community Recreation Complex.
Community Well-being and Strategic Service Delivery
• Transitioned to a new recreation software program for memberships, facility reservations, program registrations and admissions.
Community Well-being and Sustainable Future
• Received $125,000 in federal funding for Sun Valley Wading Pool and Spray Park to update infrastructure and add new play features.
Sense of Community and Sustainable Future
• Began work on a new Cultural Plan, including extensive community consultation, to guide future arts and cultural services and programs.
Strategic Service Delivery and Sustainable Future
• Restructured to focus on recreation, sports, arts, culture, and facility services. • Managed Fraser Health building demolition and asbestos abatement program.
STRATEGIC OUTCOME OR COUNCIL PRIORITY
2016 GOALS
Community Recreation Complex
• Play a key role in the planning and design of a new Community Recreation Complex.
Community Well-being and Sustainable Future
• Upgrade the Sun Valley Wading Pool and Spray Park.
Economic Strength and Sense of Community
• Coordinate the City’s involvement in the new PoCo Grand Prix cycling event.
Sense of Community and Sustainable Future
• Implement a new Cultural Plan for arts and cultural services. • Support the development of a new Festivals Committee.
Sustainable Future and Strategic Service Delivery
• Monitor facility energy use and implement energy conservation projects.
For more information about the Recreation Department, visit www.portcoquitlam.ca/recreation.
City of Port Coquitlam
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Annual Report 2015
RCMP Coquitlam RCMP serves more than 200,000 residents across Anmore, Belcarra, Coquitlam and Port Coquitlam.
KEY RESPONSIBILITIES
SERVICE AREAS
• Reduce and prevent crime and protect citizens and property through efficient and effective response-to-call, enforcement and investigations as well as strategic outreach and education initiatives. • Identify and address emerging public safety issues. • Work in partnership with the City and citizens to ensure Port Coquitlam is a healthy, vibrant and safe community.
STATS & FACTS Crime Types Person Crimes1 Property Crimes2 Other (Breach of Probation) Drugs3 Traffic4
2014 totals 819 7,264 357 311 1,945
2015 totals 888 8,258 401 265 2,139
% change +8 +14 +12 -15 +10
• RCMP • Public Safety Building
For more information about Coquitlam RCMP, visit www.portcoquitlam.ca/policing or www.coquitlam.rcmp.ca.
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 marijuana grow operations, cocaine (possession and trafficking), heroin (possession and trafficking) and methamphetamine (possession and trafficking). 4 Collision (fatal, injury and property damage), dangerous operation, impaired operation (alcohol/drugs), prohibited driver, roadside prohibitions and immediate roadside prohibitions.
• Data extracted 2016-03-31; in cases of discrepancy, the most current data will take precedence. • Statistics are for the Coquitlam RCMP jurisdiction (Coquitlam, Port Coquitlam, Anmore and Belcarra). • Criminal Code offence data are compiled using select PRIME BC files and are not comprehensive. • All data is subject to change based on investigational factors and records data quality processes. • Data is 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
2015 PERFORMANCE MEASURES
Community Well-being
• Experienced a reduction in break & enters and robberies compared to the five-year average, while calls for service increased from 37,419 to 44,308 (18%).
Sustainable Future
• Completed a power systems upgrade at the RCMP Public Safety Building. • Began development of a 2016-2020 strategic plan to guide the organization forward.
STRATEGIC OUTCOME OR COUNCIL PRIORITY
2016 GOALS
Community Well-being and Strategic Service Delivery
• Hire four new police officers to begin to build a new Uniformed Crime Reduction Unit to increase visibility and enhance focus on crime hotspots.
Sustainable Future
• Complete and implement the 2016-2020 strategic plan.
Strategic Service Delivery and Sustainable Future
• Conduct resource efficiency reviews to ensure value for taxpayer dollar.
City of Port Coquitlam
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The Traboulay PoCo Trail
36
Annual Report 2015
Financial Section
City of Port Coquitlam
37
Auditors’ Report to the Mayor and Council
KPMG LLP Metro Tower I 4710 Kingsway, Suite 2400 Burnaby BC V5H 4M2 Canada Telephone (604) 527-3600 Fax (604) 527-3636
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, 2015, 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. 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, 2015, 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.
Chartered Professional Accountants May 24, 2016 Burnaby, Canada 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.
38
Annual Report 2015
Consolidated Statement of Financial Position AS AT DECEMBER 31, 2015 2015
2014 (Recast - Note 4)
FINANCIAL ASSETS Cash and cash equivalents Investments Accounts receivable Due from other governments
$ Note 5 Note 6 Note 7
5,468,008 145,692,744 7,140,789 310,402 158,611,943
$
5,992,167 127,753,053 8,675,711 603,114 143,024,045
Accounts payable and accrued liabilities Deferred revenues
Note 8 Note 9
10,131,023 10,244,066
12,894,226 10,287,019
Deposits Development cost charges Post-employment future benefits and compensated absences Debt
Note 10 Note 11 Note 12
6,219,597 27,916,031 2,915,000
7,423,612 26,429,540 2,985,000
Note 13
22,241,280 79,666,997
22,788,231 82,807,628
78,944,946
60,216,417
624,485,405
628,955,102
584,139
571,914
115,184 625,184,728
438,035 629,965,051
LIABILITIES
NET FINANCIAL ASSETS NON-FINANCIAL ASSETS Tangible capital assets
Note 14
Inventories Prepaid expenses
ACCUMULATED SURPLUS
Note 15
Commitments and Contingencies
Note 19
$ 704,129,674
$
690,181,468
See accompanying Notes to the Consolidated Financial Statements
John Leeburn, MBA Chief Administrative Officer
City of Port Coquitlam
Karen Grommada, CPA, CMA Director of Finance
39
Consolidated Statement of Operations FOR THE YEAR ENDED DECEMBER 31, 2015 2015
2015 Budget (Notes 2c and 22)
2014
REVENUES Taxation and other levies Utility charges Sale of services Contributions Permits and licences Investment income Penalties and fines Other revenue Gain (loss) on disposals and write-downs
Note 21
$
58,696,300 18,408,100 8,133,700 7,172,600 1,802,200 1,675,000 463,400 59,100 96,410,400
$ 58,915,659 19,274,060 8,179,258 3,793,559 2,481,191 2,176,755 375,350 248,775 4,187,942 $ 99,632,549
$
$
8,629,553 16,267,492 12,855,248 13,528,327 10,541,505 2,986,839 3,447,295 10,018,955 7,409,129 $ 85,684,343
$
$
9,324,886 16,785,893 13,710,280 14,167,860 10,991,689 3,100,666 3,597,500 10,902,110 7,512,316 90,093,200
$
8,858,037 15,964,127 11,686,579 12,488,849 10,265,129 3,053,594 3,433,773 9,349,280 7,371,473 82,470,841
$
6,317,200
$ 13,948,206
$
15,260,427
$
$
56,740,831 19,032,830 7,501,919 8,857,197 2,470,482 2,210,536 392,224 767,196 (241,947) 97,731,268
EXPENSES General government Engineering and public works Recreation Police services Fire and emergency services Development services Solid waste operations Water operations Sanitary sewer operations
$
ANNUAL SURPLUS ACCUMULATED SURPLUS, beginning of year
(Recast – Note 4)
690,181,468
690,181,468
ACCUMULATED SURPLUS, end of year
(Recast – Note 4)
$ 696,498,668
$ 704,129,674
674,921,041
$
690,181,468
See accompanying Notes to the Consolidated Financial Statements
40
Annual Report 2015
Consolidated Statement of Cash Flows FOR THE YEAR ENDED DECEMBER 31, 2015 2015
2014
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 and accrued liabilities Deferred revenues Deposits Development cost charges Inventories Prepaid expenses Cash provided by operating activities
13,948,206
$
15,260,427
(374,662) 12,035,385 (4,187,942) -
(5,765,936) 11,713,008 238,198 3,749
(70,000)
8,000
1,534,922 292,712 (2,763,203) (42,953) (1,204,015) 1,486,491 (12,225) 322,851 20,965,567
(2,129,955) (109,191) 2,155,387 1,338,166 1,084,028 8,841,251 12,450 (257,093) 32,392,489
(546,951) (546,951)
(525,982) (525,982)
(8,529,362) 5,526,278 (3,003,084)
(14,494,284) 37,848 (14,456,436)
(135,000,000) 117,060,309 (17,939,691)
(127,370,210) 111,000,000 (16,370,210)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
(524,159)
1,039,861
CASH AND CASH EQUIVALENTS, beginning of year
5,992,167
4,952,306
FINANCING ACTIVITIES Debt repayment Cash used in financing activities CAPITAL ACTIVITIES Cash used to acquire tangible capital assets Cash received from disposals of tangible capital assets Cash used in capital activities INVESTING ACTIVITIES Purchase of investments Redemption of investments Cash used in investing activities
CASH AND CASH EQUIVALENTS, end of year
$
5,468,008
$
5,992,167
See accompanying Notes to the Consolidated Financial Statements
City of Port Coquitlam
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Consolidated Statement of Change in Net Financial Assets FOR THE YEAR ENDED DECEMBER 31, 2015 2015
2015 Budget (Notes 2c and 22)
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
INCREASE IN NET FINANCIAL ASSETS NET FINANCIAL ASSETS, beginning of year NET FINANCIAL ASSETS, end of year
$6,317,200 (17,044,700) (1,000,000) 12,900,000 -
2014
-
$13,948,206 (8,529,362) (374,662) 12,035,385 (4,187,942) 5,526,278 (12,225) 322,851
$15,260,427 (14,494,284) (5,765,936) 11,713,008 238,198 3,749 37,848 12,450 (257,093)
1,172,500
18,728,529
6,748,367
60,216,417
60,216,417
53,468,050
$61,388,917
$78,944,946
$60,216,417
-
See accompanying Notes to the Consolidated Financial Statements
42
Annual Report 2015
Notes to the Consolidated Financial Statements YEAR ENDED DECEMBER 31, 2015
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 20.
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 2015 Financial Plan Bylaw adopted by City Council on April 13, 2015.
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.
City of Port Coquitlam
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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-employer 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.
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Annual Report 2015
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. LIABILITIES FOR CONTAMINATED SITES Contaminated sites are a result of contamination being introduced into air, soil, water or sediment of a chemical, organic, radioactive material or live organism that exceeds an environmental standard. Liabilities are recorded net of any expected recoveries. A liability for remediation of contaminated sites is recognized when a site is not in productive use and the following criteria are met: i. ii. iii. iv. v.
An environmental standard exists; Contamination exceeds the environmental standards; The City is directly responsible or accepts responsibility; It is expected that future economic benefits will be given up; and A reasonable estimate of the amount can be made.
The liability is recognized as management’s estimate of the cost of post-remediation including operation, maintenance, and monitoring that are an integral part of the remediation strategy for a contaminated site.
N. 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 and liability for contaminated sites, 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.
0. 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 24.
3. Adoption of New Accounting Standard On January 1, 2015, the City adopted PS 3260 Liability for Contaminated Sites. The standard was applied on a retroactive basis to January 1, 2014 and did not result in any adjustment to liabilities, tangible capital assets, or accumulated surplus of the City.
City of Port Coquitlam
45
Notes to the Consolidated Financial Statements 4. Recast of Prior Year Comparative Figures During the year, the City determined the book value of certain land parcels included in tangible capital assets was overstated. The impact of these immaterial errors has been recorded retrospectively and prior periods have been recast as follows: ACCUMULATED SURPLUS AS AT JANUARY 1, 2014 Accumulated surplus , as previously reported Decrease of net book value of tangible capital assets previously recorded Accumulated surplus, as recast
$ 679,393,558 (4,472,517) $ 674,921,041
TANGIBLE CAPITAL ASSETS AT DECEMBER 31, 2014 Tangible capital assets, as previously reported Decrease of net book value of tangible capital assets previously recorded Tangible capital assets, as recast
$ 633,427,619 (4,472,517) $ 628,955,102
5. 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, 2016 to December, 2016. Investments are guaranteed by the Province of BC and have varying maturity dates from January, 2016 to December, 2016. Investments and short-term deposits have rates of return ranging from 1.45% to 2.12% (2014 - 1.09% to 2.12%).
Short-term deposits Municipal Finance Authority Intermediate Fund
2015 $ 140,000,000 5,692,744 $ 145,692,744
2014 $ 122,000,000 5,753,053 $ 127,753,053
2015 $ 2,674,639 952,362 1,620,826 1,892,962 $ 7,140,789
2014 $ 2,782,406 808,887 3,386,623 1,697,795 $ 8,675,711
6. Accounts Receivable Property tax and utility receivable Accounts receivable Development cost charges receivable Other
46
Annual Report 2015
Notes to the Consolidated Financial Statements 7. Due from Other Governments Government of Canada Province of British Columbia Other governments
2015 $ 221,957 84,631 3,814 $ 310,402
2014 $
$
450,429 109,179 43,506 603,114
8. Accounts Payable and Accrued Liabilities 2015 Accounts payable and accrued liabilities Wages and benefits payable Statutory holdbacks Due to other governments
$
7,522,812 1,987,623 107,893 512,695 $ 10,131,023
2014 $ 8,483,357 3,639,628 505,359 265,882 $ 12,894,226
9. Deferred Revenues Deferred revenues relate to amounts deposited in advance of services performed. 2015 Property tax and utility charges Programs and services
$
7,248,183 2,995,883 $ 10,244,066
2014 $ 7,108,025 3,178,994 $ 10,287,019
10.Deposits Deposits represent cash collected as security under the following bylaws: Port Coquitlam Highway Bylaw, 1984 No. 2011; Subdivision Servicing Bylaw 1987 No. 2241; and City of Port Coquitlam Soil Removal and Deposit Bylaw 2002 No. 3331.
City of Port Coquitlam
47
Notes to the Consolidated Financial Statements 11.Development Cost Charges AREA 1 Drainage Transportation Parks Water Sanitary
December 31, 2014 $
3,895,269 8,236,142 3,360,430 4,496,057 1,399,696
Third Party Contributions $
67,434 557,003 399,956 29,707 18,274
Interest Allocation $
79,650 176,742 70,543 90,968 28,501
Capital Expenditures $
(250,782) -
December 31, 2015 $
4,042,353 8,969,887 3,580,147 4,616,732 1,446,471
AREA 2 Drainage Transportation Parks Water Sanitary Parks interest $
(239,221) 770,038 1,426,349 1,227,283 749,872 1,107,625 26,429,540
$
121,954 141,063 12,098 26,478 29,518 1,403,485
(2,357) 16,383 28,817 25,201 15,666 19,942 $ 550,056
(96,051) (4,750) (115,467) $ (467,050)
(119,624) 831,433 1,462,514 1,278,962 795,056 1,012,100 $ 27,916,031
12. 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 and the results have been extrapolated to December 31, 2015. 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
$
638,000 39,000 19,000 (55,000) 641,000 (396,000) $ 245,000
Severance $ 3,049,000 158,000 90,000 (416,000) 17,000 2,898,000 (228,000) $ 2,670,000
2015 $ 3,687,000 197,000 109,000 (471,000) 17,000 3,539,000 (624,000) $ 2,915,000
2014 $ 2,986,000 283,000 124,000 (422,000) 716,000 3,687,000 (702,000) $ 2,985,000
Continued on next page
48
Annual Report 2015
Notes to the Consolidated Financial Statements 12. Post-Employment Future Benefits and Compensated Absences (continued) 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:
Discount rates Expected future inflation rates Expected compensation increases Expected average remaining service lifetime
2015
2014
3.00% 2.50% 2.58% - 4.63% 10 years
3.00% 2.50% 2.58% - 4.63% 10 years
13. 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
2015 Sinking Fund Asset $ 2,758,720
2014 Net Debt
Net Debt
$ 22,241,280
$ 22,788,231
Future payments on net outstanding debt over the next five years and thereafter are paid from the General Fund and are as follows:
2016 2017 2018 2019 2020 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 28,086,797 35,478,057 13,236,777 $ 22,241,280
The City paid $931,301, net of earnings on debt reserve deposit, in interest on debt during the year (2014 - $943,853).
City of Port Coquitlam
49
Notes to the Consolidated Financial Statements 14. Tangible Capital Assets a.
Assets Under Construction: Assets under construction having a value of $5,620,560 (2014 - $5,291,264) 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 $374,662 (2014 - $5,765,936). AS AT DECEMBER 31, 2015 Parks Infrastructure
Vehicles, Machinery, Equipment
$ 219,675,768 27,699 (6,603) 219,696,864
$ 22,581,751 291,552 22,873,303
$ 23,396,279 2,104,055 (703,452) 24,796,882
$ 257,862,608 1,700,311 1,385,944 (1,177,036) 259,771,827
-
13,356,911 816,902 14,173,813
12,763,076 2,004,675 (558,943) 14,208,808
50,331,624 4,282,092 (542,842) 54,070,874
8,699,490
$ 10,588,074
$ 205,700,953
Land COST Opening balance (Recast – Note 4) Add: Additions Add/(Deduct): Transfers from AUC Less: Disposals Closing balance ACCUMULATED AMORTIZATION Opening balance Add: Amortization Less: Accumulated amortization on disposals Closing balance Net book value as at December 31, 2015
$ 219,696,864
$
AS AT DECEMBER 31, 2014 Parks Infrastructure
Vehicles, Machinery, Equipment
$ 214,748,499 4,927,269 219,675,768
$ 21,988,031 593,720 22,581,751
$ 20,323,017 3,592,295 (519,033) 23,396,279
$ 254,026,617 3,532,967 763,819 (460,795) 257,862,608
-
12,503,508 853,403 13,356,911
11,600,833 1,641,588 (479,345) 12,763,076
46,343,453 4,221,559 (233,388) 50,331,624
9,224,840
$ 10,633,203
$ 207,530,984
Land COST Opening balance (Recast – Note 4) Add: Additions Add/(Deduct): Transfers from AUC Less: Disposals Less: Write-downs (adjustments) Closing balance (Recast – Note 4) ACCUMULATED AMORTIZATION Opening balance Add: Amortization Less: Accumulated amortization on disposals Closing balance Net book value as at December 31, 2014
50
Transportation Infrastructure
Transportation Infrastructure
(Recast – Note 4) $ 219,675,768
$
Annual Report 2015
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 of tangible capital assets: The write-down of tangible capital assets during the year was nil (2014 - $3,749).
Buildings
Drainage
Land Improvements
Water
Sanitary Sewer
$ 36,596,351 660,344 37,256,695
$ 86,641,124 732,735 113,453 (67,555) 87,419,757
$ 20,524,544 (129,080) 20,395,464
$ 74,248,236 1,363,889 105,340 (516,115) 75,201,350
$ 57,588,015 89,406 (2,066) 57,675,355
16,741,268 886,684 17,627,952
28,021,987 1,296,389 (24,216) 29,294,160
5,477,710 289,663 (79,610) 5,687,763
29,432,812 1,601,280 (56,635) 30,977,457
19,325,450 857,700 (1,325) 20,181,825
19,628,743
$ 58,125,597
14,707,701
$ 44,223,893
$ 37,493,530
$
Buildings
Drainage
$
Land Improvements
Water
Sanitary Sewer
$ 36,049,744 546,607 36,596,351
$ 85,929,679 424,921 286,807 (283) 86,641,124
$ 20,464,855 59,689 20,524,544
$ 72,030,090 1,792,185 444,967 (19,006) 74,248,236
$ 57,046,585 244,677 296,753 57,588,015
15,764,272 976,996 16,741,268
26,732,231 1,289,913 (157) 28,021,987
5,187,468 290,242 5,477,710
27,856,073 1,586,920 (10,181) 29,432,812
18,473,063 852,387 19,325,450
19,855,083
$ 58,619,137
15,046,834
$ 44,815,424
$ 38,262,565
$
City of Port Coquitlam
$
Assets Under Construction (AUC) $
2015 Total
5,291,264 1,934,033 (1,604,737) 5,620,560
$
175,450,838 12,035,385 (1,263,571) 186,222,652
$
5,620,560
$
Assets Under Construction (AUC) $
624,485,405
2014 Total (Recast – Note 4)
2,541,469 4,545,890 (1,792,346) (3,749) 5,291,264
$
5,291,264
785,148,586 20,260,220 (999,117) (3,749) 804,405,940
164,460,901 11,713,008 (723,071) 175,450,838
-
$
804,405,940 8,904,024 (2,601,907) 810,708,057
$
628,955,102
51
Notes to the Consolidated Financial Statements 15. Accumulated Surplus 2015 Unrestricted Reserves: General Water Sewer
$
19,102,569 6,499,179 2,570,048 28,171,796
2014 (Recast - Note 4) $
20,727,405 7,072,784 2,503,446 30,303,635
Restricted Reserves
Note 16
73,014,430
52,701,013
Equity in tangible capital assets Equity in inventories and prepaids
Note 17
602,244,125 699,323 602,943,448
606,166,871 1,009,949 607,176,820
$
704,129,674
$
690,181,468
16. Restricted Reserves December 31, 2014 Building maintenance Cemetery expansion Community amenities Environmental Equipment Gas tax Land sale Long term infrastructure Operating Parking Parks and recreation Parkland acquisition Public safety building Public works special capital Recreation complex RCMP Roads and drainage infrastructure Sewer Social housing Unallocated capital Water
52
$
2,896,320 98,327 164,783 150,479 10,168,988 216,423 8,056,312 10,243,634 2,172,032 2,587,153 475,195 802,953 602,531 2,256,483 7,155,970 3,272,443 225,842 1,455,580 (300,435) $ 52,701,013
Contributions/ Transfers $
290,700 44,623 20,020 387,700 1,536,689 214,176 7,088,400 6,051,800 265,121 180,000 515,200 333,556 40,900 690,000 1,171,700 2,678,966 53,800 20,019 3,450,700 868,600 $ 25,902,670
Interest Allocation $
58,580 1,529 3,440 6,921 197,297 6,503 232,146 266,718 46,322 53,811 11,082 19,492 8,683 45,355 6,935 11,776 126,797 61,574 4,741 63,893 (2,621) $ 1,230,974
Use of Reserves $
(254,517) (89,123) (7,285) (2,243,075) (101,904) (362,918) (382,009) (2,374,624) (471,946) (4,313) (528,513) $ (6,820,227)
December 31, 2015 $
2,991,083 55,356 180,958 545,100 9,659,899 437,102 15,274,954 16,562,152 2,483,475 2,820,964 638,559 1,156,001 270,105 2,301,838 696,935 1,183,476 7,587,109 2,915,871 250,602 4,965,860 37,031 $ 73,014,430
Annual Report 2015
Notes to the Consolidated Financial Statements 17. Equity in Tangible Capital Assets 2015 Cost of tangible capital assets Accumulated amortization Debt incurred to purchase tangible capital assets
Note 14 Note 14 Note 13
$810,708,057 (186,222,652) (22,241,280) $602,244,125
2014 (Recast - Note 4) $804,405,940 (175,450,838) (22,788,231) $ 606,166,871
18. Pension Plan The employer and its employees contribute to the Municipal Pension Plan (a jointly trusteed pension plan). The board of trustees, representing plan members and employers, is responsible for administering the plan, including investment of assets and administration of benefits. The plan is a multi-employer defined benefit pension plan. Basic pension benefits are based on a formula. As at December 31, 2014, the plan has about 185,000 active members and approximately 80,000 retired members. Active members include approximately 37,000 contributors from local governments. Every three years, an actuarial valuation is performed to assess the financial position of the plan and adequacy of plan funding. The actuary determines an appropriate combined employer and member contribution rate to fund the plan. The actuary’s calculated contribution rate is based on the entry-age normal cost method, which produces the long-term rate of member and employer contributions sufficient to provide benefits for average future entrants to the plan. This rate is then adjusted to the extent there is amortization of any funding deficit. The most recent valuation for the Municipal Pension Plan as at December 31, 2012, indicated a $1,370 million funding deficit for basic pension benefits on a going concern basis. The City of Port Coquitlam paid $2,939,031 for employer contributions to the plan in 2015, which represents 0.17% of the total plan contributions. The next valuation will be as at 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, resulting in no consistent and reliable basis for allocation the obligation, assets and cost to individual employers participating in the plan. The City paid $2,939,031 (2014 - $2,483,880) for employer contributions to the plan while employees contributed $2,395,079 (2014 - $2,029,403) to the plan in fiscal 2015.
City of Port Coquitlam
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Notes to the Consolidated Financial Statements 19. 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, 2015.
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 shares and 2 Class B shares (of a total of 28 Class A and 23 Class B shares issued and outstanding as at December 31, 2015). 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.
20. 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. 2015
2014
CEMETERY PERPETUAL CARE FUND
54
Cash balance, beginning of year
$1,327,352
$1,263,357
Net contributions received Interest earned Cash balance, end of year
53,383 27,216 $1,407,951
37,075 26,920 $1,327,352
Annual Report 2015
Notes to the Consolidated Financial Statements 21. 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: 2015 Gross taxes levied on property
$ 93,415,008
$ 90,416,327
27,145,709 809,029 870,350 5,671,405 2,856 34,499,349
26,425,137 788,539 851,301 5,607,832 2,688 33,675,497
$ 58,915,659
$ 56,740,830
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
2014
22. Budget Information The budget information presented in these consolidated financial statements is based upon the 2015 Financial Plan Bylaw approved by Council on April 13, 2015. The chart below reconciles the approved budget to the budget figure reported in these consolidated financial statements.
Budget Amount Revenue Expenses Annual surplus per consolidated statement of operations Add: Amortization Less: Transfers from reserves Capital expenditures Capital contributed by developers Debt principal repayments Approved budget
$
96,410,400 (90,093,200) 6,317,200
12,900,000
(726,700) (17,044,700) (1,000,000) (445,800) $ -
23. Comparative Information Certain comparative information has been reclassified to conform with the consolidated financial statement presentation adopted for the current year.
City of Port Coquitlam
55
Notes to the Consolidated Financial Statements 24. Operations by Segment The City provides a wide range of municipal services to its residents, businesses, industries, farms and other properties within its boundaries. 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. General Government: General: Includes activities that are attributable to multiple segments. Corporate Support: Provides support services that include: communications and administrative services, corporate office and lands, bylaw services and information services. Finance: Provides financial services to citizens, City departments and City Council including financial planning and systems, accounting services, revenue and collections, payroll, purchasing and risk management. Human Resources: Provides specialized advice and assistance in all facets of people management including recruitment, labour relations, occupational health and safety, staff training and development, benefit administration, wage and salary administration. Office of the Chief Administrative Officer (CAO): Oversees the implementation of the vision, plans and priorities by ensuring effective policies are in place and adhered to and by providing leadership that enables an engaged and productive municipal workforce. GENERAL GOVERNMENT REVENUE General $ 58,754,675 Taxation and other levies Utility rates Sale of services 26,250 Contributions 1,295,611 Permits and licences 2,176,755 Investment income Penalties and fines 364,194 Other revenue 50,236 5,285,397 Gain (loss) on disposals and write-downs $ 67,953,118 EXPENSES $ Personnel Contracted and other Services Telephone, utilities and rent Materials and supplies Internal charges (recoveries) Insurance and claims Interest and bank charges 933,700 Grants and financial assistance 142,794 Amortization $ 1,076,494 ANNUAL SURPLUS (DEFICIT)
56
Corporate Human Office of Engineering & Support Finance Resources the CAO Public Works $ - $ - $ - $ - $ 35,237 260,189 1,613 1,434,124 200 89,704 1,145,583 1,046,547 26,966 (1,780) 11,156 36,976 48,820 1,514 51,839 (642,406) $ 1,130,116 $ 425,679 $ 1,514 $ 1,613 $ 1,987,360 $ 2,765,513 $ 2,096,198 $ 712,383 $ 450,411 $ 7,006,676 749,874 407,133 127,098 1,961 2,442,946 74,230 64,809 1,949 2,945 624,524 73,081 154,143 9,247 1,834 1,426,709 47,145 (1,102,760) (3,158,430) 363,934 173,967 11,991 15,984 6,196 18,625 505,331 7,744,904 $ 4,227,165 $ 2,018,066 $ 850,677 $ 457,151 $ 16,267,492
$ 66,876,624 $(3,097,049) $(1,592,387) $ (849,163) $ (455,538) $ (14,280,132)
Annual Report 2015
Notes to the Consolidated Financial Statements Engineering & Public Works: Provides and maintains a number of essential municipal services and infrastructure including transportation, parks, trails, athletic fields, roads and drainage, environmental protection, management of the City’s fleet and related engineering services. Recreation: Delivery of recreation, sport, community and cultural programs, events and services, and the operation of recreation facilities. Police Services: Is a shared service with the City of Coquitlam that protects the community from criminal activity and ensures public safety. Fire & Emergency Services: Protects life, property and the environment through the provision of emergency response, inspections, code enforcement and public education. Development Services: Ensures orderly and safe development within the City, including Planning, Building and Development Engineering services. Solid Waste: Includes curbside garbage, recycling and organics collection and glass collection from depot locations across the City. 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.
Recreation $ - $ 3,175,673 541,506 58,165 $ 3,775,344 $
Police Services 47,700 679,270 726,970
Fire & Emergency Development Services Services Solid Waste $ - $ 160,984 $ 67,026 156,885 2,974,561 5,246 4,000 - 1,409,458 5,172 $ 77,444 $ 1,731,327 $ 2,974,561
Sanitary Water Sewer Operations Operations 2015 2014 $ - $ - $ 58,915,659 $ 56,740,831 11,277,050 7,997,010 19,274,060 19,032,830 8,179,258 7,501,919 23,529 8,910 3,793,559 8,857,197 2,481,191 2,470,482 2,176,755 2,210,536 375,350 392,224 1,225 248,775 767,196 4,187,942 (241,947) (459,480) (741) $10,842,324 $ 8,005,179 $ 99,632,549 $ 97,731,268
$886,420 $644,765 1,086,742 202,367 800 21,949 52,326 6,136,817 1,421,007 1,411,782 - 1,601,275 3,447,295 $10,018,955 $
33,943,411 $ 32,645,288 $195,401 4,928,770 27,316,503 25,825,609 78,582 1,583,702 1,560,685 49,220 9,003,275 8,957,218 1,299,457 568,967 697,487 1,094,377 991,250 138,723 80,296 12,035,385 857,699 11,713,008 7,409,129 $ 85,684,343 $ 82,470,841
$(9,079,904) $(12,801,357) $(10,464,061) $ (1,255,512) $ (472,734) $ 823,369 $
596,050 $ 13,948,206 $ 15,260,427
$ 7,188,492 $ $9,370,548 $2,626,604 3,410,074 13,381,141 306,280 272,117 637,078 67,320 9,516 818,682 271,064 10,152 21,861 1,314 58,624 1,953 29,113 122,340 4,166 120,098 5,660 495,866 534,670 147,186 $12,855,248 $ 13,528,327 $ 10,541,505 $ 2,986,839 $
City of Port Coquitlam
57
Schedule 1 – Statement of Operations by Fund FOR THE YEAR ENDED DECEMBER 31, 2015
REVENUES Taxation and other levies Utility rates Sale of services Contributions Permits and licences Investment income Penalties and fines Other revenue Gain (loss) on disposals and write-downs
General Water Sewer Capital Reserve Fund Fund Fund Fund Fund 2015 2014 $ 56,740,831 $ 58,915,659 $ - $ - $ - $ - $ 58,915,659 11,277,050 7,997,010 19,274,060 19,032,830 8,179,258 8,179,258 7,501,919 2,771,520 1,022,039 3,793,559 8,857,197 2,481,191 2,481,191 2,470,482 945,781 1,230,974 2,176,755 2,210,536 374,125 1,225 375,350 392,224 248,775 248,775 767,196 -
-
$ 73,916,309 $ 11,278,275 $
7,997,010 $
4,187,942
-
4,187,942
(241,947)
4,187,942 $
2,253,013 $ 99,632,549 $ 97,973,215
$
7,981,428 $ 8,522,588 12,320,578 13,381,141 10,045,639 2,981,179 3,447,295 $ 58,679,848 $
- $ - $ 648,125 $ 7,744,904 534,670 147,186 495,866 5,660 8,417,680 1,601,275 6,551,430 857,699 8,417,680 $ 6,551,430 $12,035,385 $
- $ 8,629,553 $ 8,858,037 - 16,267,492 15,964,127 12,855,248 11,686,579 13,528,327 12,488,849 10,541,505 10,265,129 2,986,839 3,053,594 3,447,295 3,433,773 9,349,280 - 10,018,955 7,409,129 7,371,473 - $ 85,684,343 $ 82,470,841
$ 15,236,461 $
2,860,595 $
EXPENSES General government Engineering and public works Recreation Police services Fire and emergency services Development services Solid waste operations Water operations Sanitary sewer operations EXCESS (DEFICIENCY) OF REVENUES OVER EXPENSES
1,445,580 $ (7,847,443) $
2,253,013 $ 13,948,206 $ 15,502,374
INTERFUND TRANSFERS Current fund to capital fund Current fund to reserve fund Capital fund to current fund Reserve fund to current fund Reserve fund to capital fund
ANNUAL SURPLUS (DEFICIT) ACCUMULATED SURPLUS, beginning of year (Recast - Note 4) ACCUMULATED SURPLUS, end of year
58
$ (2,288,355) $ (777,314) $ - $ 3,065,669 $ (20,834,431) (2,657,000) (1,389,200) 5,400,213 (5,400,213) 550,650 114 10,222 6,259,241 $(17,171,923) $ (3,434,200) $ (1,378,978) $ 3,924,697 $
- $ 24,880,631 (560,986) (6,259,241) 18,060,404 $
- $ - $
-
(1,935,462)
(573,605)
66,602
(3,922,746)
20,313,417
13,948,206
15,502,374
21,737,354
7,072,784
2,503,446
606,166,871
52,701,013
690,181,468
674,921,041
$ 19,801,892 $ 6,499,179 $
2,570,048 $ 602,244,125 $ 73,014,430 $ 704,129,674 $ 690,423,415
Annual Report 2015
Statistical Section (unaudited)
City of Port Coquitlam
59
Average Home Municipal Taxes and Utilities Source: BC Ministry of Community, Sport & Cultural Development
NORTH VANCOUVER DISTRICT | $4,098 WEST VANCOUVER | $5,503 NORTH VANCOUVER CITY | $3,401
COQUITLAM | $3,392 PITT MEADOWS | $2,856
PORT MOODY | $3,792 BURNABY | $3,731
VANCOUVER | $3,856
MAPLE RIDGE | $3,173 PORT COQUITLAM | $3,048
NEW WESTMINSTER | $3,881
RICHMOND | $3,618 LANGLEY (CITY) | $2,823
SURREY | $2,938
TAX RANGE
DELTA | $3,147
> $4,000 $3,700 - $3,999 $3,300 - $3,699
LANGLEY TOWNSHIP | $3,018
$3,000 - $3,299 $2,700 - $2,999
WHITE ROCK | $3,785
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60
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Annual Report 2015
Community Statistics Assessed Values for General Municipal Purposes Dollars (000,000)
Source: BC Assessment Authority
Population Estimates People Source: BC Ministryy of CiĆ&#x;zens’ Services
City of Port Coquitlam
61
Household Cost of City Services Estimated Household Costs of City Services for an Average Single Family Residence Source: City of Port Coquitlam Finance Department
(/2+$,0
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Annual Report 2015
Property Taxes Property Taxes Levied and Collected Source: City of Port Coquitlam Finance Department
Thousands 2010 City of Port Coquitlam - tax Regional District BC Assessment Finance Authority School District BC Transit Authority
$
2011
46,926 744 786 2 23,346 5,384
$
2012
49,594 791 814 2 23,853 5,598
$
51,408 755 821 3 24,369 5,546
2013 $
54,066 806 846 3 25,464 5,604
2014 $
54,918 789 851 3 26,425 5,607
2015 $
57,120 809 870 3 27,146 5,671
TOTAL CURRENT TAXES LEVIED
77,188
80,652
81,159
86,789
88,593
91,619
Current tax collected ($) Current tax collected (%)
75,306 97.56%
79,035 98.00%
81,158 97.90%
85,323 98.31%
86,872 98.06%
90,306 98.57%
Tax arrears beginning of year
2,503
2,515
2,182
2,144
2,227
1,977
Tax arrears collected ($) Tax arrears collected (%)
1,765 70.52%
1,696 67.44%
1,354 62.05%
1,376 64.18%
1,529 68.66%
1,380 69.80%
TOTAL TAX COLLECTIONS Έ$Ή
$
77,071
$
80,732
$
82,513
$
86,699
$
88,401
$
91,686
Taxes, Major Levies and Other Government Collections Dollars
Source: City of Port Coquitlam Finance Department
$%# ### ###
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)# ### ###
'# ### ###
$## ### ###
%# ### ###
%#$$
City of Port Coquitlam
%#$%
%#$&
%#$'
%#$(
63
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
64
Annual Report 2015
Expenses Expense by Function Dollars
Annual Totals 2011 $76,802,516
!$
2012 $80,005,533
2013 $80,383,775
2014 $82,470,841
!
2015 $85,684,343
Source: City of Port Coquitlam Finance Department
$
$
!
! !
! "
! #
! $
Expense by Object Annual Totals
Dollars 2011 $76,802,516
2012 $80,005,533
2013 $80,383,775
2014 $82,470,841
2015 $85,684,343
Source: City of Port Coquitlam Finance Department
City of Port Coquitlam
65
Capital Expenditures Capital Expenditures and Net Debt Per Capita Dollars
Source: City of Port Coquitlam Finance Department
Capital Expenditures by Source Dollars
Source: City of Port Coquitlam Finance Department
66
Annual Report 2015
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
67
2015 Total Revenue and Expenses 2015 Revenue Total Revenue: $99.6 million
&) %) #)
$&)
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2015 Expenses Total Expenses: $85.7 million '* !"*
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68
!&*
Annual Report 2015
Principal Taxpayers and Tax Exemptions 2015 Principal Corporate Taxpayers REGISTERED OWNER Canadian Pacific Railway 0697788 BC Ltd 0697788 BC Ltd Artis Poco Place Ltd 629654 BC Ltd 1510060 Ontario Inc Mondi Properties Hope Distribution & Sales Inc. RPMG Holdings Ltd De Gobbi Industries Ltd Costco Wholesale Canada Ltd Sysco Canada Inc Westlo Financial Corp Onni Development Corp 566203 BC Ltd Runnel Holdings Inc Yen Hoy Enterprises Ltd Home Depot Holdings Inc Consolidated Fastfrate (BC) Holdings Inc Sears Canada Inc Jim Pattison Developments Beedie (Kingsway Ave) Holdings II Ltd Sunrise Investments Inc Kebet Holdings Ltd RPMG Holdings Ltd
PRIMARY PROPERTY Railyard Shopping Centre Shopping Centre Shopping Centre Warehouse Distribution Shopping Centre Miscellaneous Shopping Centre Miscellaneous Miscellaneous Retail Sales Food Distributor Shopping Centre Miscellaneous Miscellaneous Shopping Centre Shopping Centre Retail Sales Shipping Company Distributor Retail Sales Manufacturing Miscellaneous Miscellaneous Warehouse Distribution
TAXES LEVIED 1,106,179 841,828 585,336 555,831 518,817 457,010 455,761 451,646 407,659 387,485 385,654 377,336 343,517 335,610 309,245 288,897 288,897 285,286 282,742 260,349 258,773 255,527 240,637 232,287 228,645 $ 10,140,956
2015 Permissive Property Tax Exemptions NAME Port Coquitlam Heritage and Cultural Society Port Coquitlam Kinsmen Club Tri-City Women's Centre Hyde Creek Streamkeepers Victory Baptist Church Southside Baptist Church Coquitlam Chinese Evangelical Free Church Port Coquitlam Pentecostal Assembly BC Conference of Mennonite Brethren Church Port Coquitlam Seniors Housing Vancouver Bible Presbyterian Northside Foresquare Gospel United Church Fellowship Deaconry Association of British Columbia Hope Lutheran Church Tri-City Islamic Centre Coquitlam Chinese Evangelical Bible Church Royal Canadian Legion Port Coquitlam (British Columbia/Yukon) Hawthorne Care Centre Archbishop Carney Roman Catholic Highschool Our Lady of Assumption Roman Catholic Church and Elementary
City of Port Coquitlam
TAX RELIEF $ 6,526 7,231 9,045 9,124 9,699 11,691 14,491 16,176 25,018 26,094 26,430 26,554 27,624 28,109 28,716 29,019 31,490 48,467 85,353 172,274 176,113 $ 815,245
69
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