City of Powell River Annual Report 2018 by The Peak

POWELL RIVER ANNUAL REPORT 2018 in Review

EMMA LAROCQUE PHOTO

INTRODUCTION The City of Powell River is a small seaside city located in the spectacular setting of the British Columbia Upper Sunshine Coast boasting big achievements in 2018 and bigger ambitions for the future. Reachable only by ferry or air, Powell River’s isolation is its charm and greatest appeal for retirees and a new influx of young professionals from large urban centres in the Lower Mainland looking for a better quality of life.

ise an exceptional lifestyle, affordability, low crime rate, quality education, world-class recreation, clean water and fresh air. Our economy is diversifying from the single industry mill town that Powell River was founded on in 1910. The City is enjoying a booming residential development sector and new business investment in light industry and the creative economy.

Powell River enjoys a temperate coastal rainforest climate with warm and comfortable summers and Located on the traditional territory of the Tla’amin winters kept lush and green by coastal rain. The averNation, Powell River is the centre of the qathet Re- age high temperature in July is 22.4°C and in January gional District and the gateway to a spectacular play- it drops 5.0°C. The average annual rainfall ranges beground of islands, ocean and backcountry. We prom- tween 101cm and 105cm. City Area 28.91 square kilometres Residents/Population 13,157 Regional area 5,092 square kilometres Residents/Population 20,070 Total Civic Grants-in-Aid

$24,183.00 cash/$39,525.48 In-Kind

Total Powell River Community Forest Grants

$1,949,990

2 ANNUAL REPORT 2018 | CITY OF POWELL RIVER

CONTENT Message from the Mayor ..................................................................................................4 Message from the former Chief Administrative Officer .............................5 Vision and Values ....................................................................................................................6 Mayor and Council .............................................................................................................7-8 Departments Infrastructure and Operations.................................................................................. 9-11 First Responders .Fire Rescue ........................................................................................................................12-13 . RCMP..............................................................................................................................................14 Administration ..........................................................................................................................15 Planning Services .Sustainability .........................................................................................................................16 . Development and Community Planning ...................................................17-19 Economic Development and Communications ....................................20-21 Parks, Recreation and Culture.............................................................................22-23 Information Technology Services.............................................................................24 Finance .........................................................................................................................................25 . Tax Exemptions ....................................................................................................................26 . Grants-in-Aid ......................................................................................................................... 27 Powell River Community Forest Grants............................................................28 . 2018 Consolidated Financial Statements.........................................................29 Cover photo: Michelle Pennell Copyright ÂŠ All rights reserved. City of Powell River

ANNUAL REPORT 2018 | CITY OF POWELL RIVER 3

MESSAGE FROM MAYOR This is the eighth Annual Report that I have presented to you as Mayor. Each year, I marvel at what the City of Powell River accomplishes. Our successes are your successes. They are possible only through the dedication of the people who work tirelessly to serve this community. It is City Council that receives most of the public attention, good and bad, but it is our City staff that deserve nothing but accolades. These are the people who make Powell River run. They are family, friends, coaches, fishing buddies, artists, athletes, community volunteers and neighbours. It is with great satisfaction that I present the highlights of their work on behalf of all of Powell River in 2018. In this report, you will see the involvement the City has in our community through outreach programs, education and awareness campaigns, and public information and engagement. There are also significant goals that were completed in 2018 that will improve Powell River’s infrastructure, attract investment and put the City on a firm financial foundation for the future. As always, we welcome your input and suggestions, with reason and respect, on how we can make Powell River even better. It is my sincere privilege to serve you in my role as Mayor of the City of Powell River. Thank you for working alongside us.

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“These are the people who make Powell River run. They are family, friends, coaches, fishing buddies, artists, athletes, community volunteers and neighbours.” David J. Formosa Mayor

MESSAGE FROM CAO Thank you. Two simple words that can convey so much. Thank you to our customers who use the over one hundred municipal services offered in our mid-sized community. When things are going well, most of these services become invisible, or at least taken for granted. When services are broken or not available, frustration is often the response as many services are essential and others are emotionally charged. It is our commitment to expeditiously restore disrupted services and explain the rationale behind emotionally charged issues. In a community of 13,000 people that provides many services to the 20,000 people of our region, individual compromise for the collective good is necessary but often hard to achieve and even harder to accept. Thank you for caring about your community in these circumstances. Thank you to the Mayor, Council and 200 staff members. 2018 marks the end of my 42 years of public service at the federal, provincial, regional and municipal levels in the finest country in the world. I say without reservation, that the City of Powell River team is the best group of colleagues with which I have worked. It has been an honour to have been a part of such a team. Thank you.

“I say without reservation, that the City of Powell River team is the best group of colleagues with which I have worked.” Mac Fraser Former Chief Administrative Officer

In December 2018, Mac Fraser retired and Russell Brewer became the City’s new Chief Administrative Officer.

Russell Brewer Chief Administrative Officer

ANNUAL REPORT 2018 | CITY OF POWELL RIVER 5

JOSEPH MCLEAN PHOTO

VISION AND VALUES The City upholds the vision and values for a sustainable Powell River, including an economically diverse and resilient economy; a vibrant and safe community for the social well-being of our citizens; and a diverse and healthy natural environment.

Mission Our mission is to ensure provision of quality services, in a manner that promotes prosperity and economic, environmental, and social health and well-being for current and future generations, while living within our means and economic sustainability.

Social Planning and Action The City will work collaboratively with all parties to advance community social objectives and needs. Community Engagement The City will facilitate the community being informed and involved in local matters and initiatives.

Strategic Corporate Priorities

Financial Resiliency The City will strive towards long-term financial sustainability and best practices in internal processes. Asset Management The City will follow best practices in asset management and seek to maximize capital utilization and Strategic Community Priorities stewardship. Regional Recreation Sustainability The City will be a leader in increasing community, The City will facilitate, encourage and provide enenvironmental, social/cultural and economic hanced recreation services in the region. Emergency Preparedness sustainability. The City will ensure the residents of Powell River are Economic Revitalization The City will facilitate, promote and develop com- prepared to withstand emergencies through a collaborative support approach throughout the region. munity economic resiliency and vibrancy. Community Planning The City will lead the community in safeguarding and enhancing the positive physical and environmental attributes of Powell River. 6 ANNUAL REPORT 2018 | CITY OF POWELL RIVER

2018 MAYOR AND COUNCIL Mayor David Formosa Portfolios: Economic Development, Powell River Community Forest Ltd., Regional Emergency Executive Committee

Councillor Russell Brewer Portfolios: Finance, qathet Regional District Municipal Director, Tourism Powell River, Municipal Insurance Association of British Columbia, Select Sustainability Advisory Committee, Grant Funding Advisory Committee

Councillor Maggie Hathaway Portfolios: Protective Services, Community Futures Development Corporation, Catalyst Community Stakeholders Committee, Northern Sunshine Coast Ferry Advisory Committee

Councillor CaroleAnn Leishman Portfolios: Arts, Culture & Heritage, Youth Council, Sustainability Committee, qathet Regional District Municipal Director

Councillor James Palm Portfolios: Infrastructure, Parks and Recreation, Seniors, Sports Hall of Fame Committee, BC Ferry Advisory Committee

Councillor Karen Skadsheim Portfolios: Infrastructure, Communications, Select Grant Funding Advisory Committee, North Sunshine Coast Ferry Advisory Committee, Tourism Powell River, Community Futures Development Corporation, Community Advisory Group to Western Stillwater and Island Timberlands, Canada 150 Community Leaders Network

Councillor Rob Southcott Portfolios: Planning, Association of Vancouver Island Coastal Communities Social Procurement, Parcel Tax Roll Review Panel, Powell River Library Board, Sustainability Committee

Declaration

In accordance with Section 98(2)(e) of the Community Charter, there were no declarations of disqualification made under Section 111 of the Community Charter in the year 2018. ANNUAL REPORT 2018 | CITY OF POWELL RIVER 7

NEWLY ELECTED MAYOR AND COUNCIL Mayor David Formosa Portfolios: Economic Development, Powell River Community Forest Ltd, Regional Emergency Executive Committee

Councillor George Doubt Portfolios: Finance, Sustainability and Climate Change Adaptation/Mitigation, Finance Committee Chair, Municipal Insurance Association of BC, Parcel Tax Roll Review Panel, Sustainability Committee, Tourism Powell River, qathet Regional District Municipal Director

Councillor Maggie Hathaway Portfolios: Communication, Protective Services: RCMP, Fire Service, Emergency Services & Bylaw Enforcement, Social Action & Planning, Affordable Housing, Parcel Tax Roll Review Panel, Powell River Community Forest Ltd.

Councillor CaroleAnn Leishman Portfolios: Solid Waste, Sustainability and Climate Change Adaptation/Mitigation, Sustainability Committee, Youth Council, qathet Regional District Municipal Director, Powell River Regional Hospital District Chair

Councillor James Palm Portfolios: Infrastructure, Parks and Recreation, Seniors, Sports Hall of Fame Committee, BC Ferry Advisory Committee

Councillor Cindy Elliott Portfolios: Arts, Culture and Heritage, Social Action & Planning, Affordable Housing, Community Advisory Group to Western Stillwater & Island Timberlands, Community Futures Development Corporation

Councillor Rob Southcott Portfolios: Planning, Legislative Services and Procedural Governance, Coastal Communities Procurement Initiative, Parcel Tax Roll Review Panel, Powell River Library Board, Sustainability Committee, Youth Council

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INFRASTRUCTURE AND OPERATIONS The most significant decision for the City of Powell River in 2018 was Councilâ&#x20AC;&#x2122;s approval of the location, design and engineering for a new Consolidated Liquid Wastewater Treatment Plant. The project is an investment in the environment, economy, job creation and quality of life that will meet the demands of Powell River for generations.

Grant applications were submitted that would cover up to 73 per cent of the estimated total project cost and the City awaits decisions on those federal and provincial funding applications.

The plant will consolidate sewage from three aging facilities in Westview, Townsite, where the new plant will be located, and the Wildwood Lagoon.

Two major projects were completed under the City of Powell Riverâ&#x20AC;&#x2122;s 2018 Road Pavement Management Plan. A total $460,000 was spent on a two-block stretch of Maple Avenue in Townsite, and Kemano Street between Manson and Fernwood venues in Westview.

A key to the City becoming a leader in sustainability is the Municipal Cycling Plan. Phase 4 of the plan was completed in 2018. The new ManThe size, scope and estimated cost of between $70 son/Townsite connector is part of a network of million to $80 million dollars makes it the larg- bike lanes planned as a continuous route through est infrastructure project in the history of Powell the City. Since construction began in 2015, over River and will bring the City into compliance with $1 million has been invested in the cycling plan to encourage active transportation. federal and provincial regulations.

City Council chose a design in keeping with the architecture of Historic Townsite.

ANNUAL REPORT 2018 | CITY OF POWELL RIVER 9

CITY OF POWELL RIVER SUPERINTENDENT OF PUBLIC WORKS, MURRAY STEER || OPERATIONS WORKERS CRAIG MURRAY [LEFT] AND YVON SEVIGNY.

Operations

The Timberlane Park concession stand was removed and replaced by a refurbished building from the forOur public works professionals plan, design, build, mer barge terminal. operate and maintain transportation, water supply, storm drainage, sewage and garbage disposal sys- Our operation workers made the excitement of Powtems, public buildings, and other structures and fa- ell River Logger Sports more accessible by building a cilities, and provide community services that are es- ramp for wheelchair access and a viewing area, and the Powell River Recreation Complex became more sential to quality of life. accessible with the installation of a new bus stop. In 2018, the department conducted unidirectional water-main flushing in Townsite to help improve The Centennial Building was given new siding, the drinking water quality, and watermains were re- Dwight Hall roof was replaced, the Powell River Airplaced on Jordan Street and Gordan Lane. In Cran- port furnace was replaced, flooring was installed at berry the department conducted smoke testing of the bus depot, there were renovations done at the Wildwood Fire Hall and the Cranberry Fire Hall roof sanitary main lines. was replaced. 10 ANNUAL REPORT 2018 | CITY OF POWELL RIVER

CONTEST WINNERS: CITY OF POWELL RIVER OPERATIONS STAFF, YVON SEVIGNY [LEFT] AND GILLES RIVEST, AND GRADE THREE WESTVIEW ELEMENTARY SCHOOL STUDENTS, KYRA KING [LEFT] AND MAYLIN CAIRNS, WHOSE ARTWORK NOW APPEARS ON THE SIDES OF TWO NEW GARBAGE AND RECYCLING TRUCKS. POWELL RIVER PEAK PHOTO

Operations maintains and operates the Westview/ South and North Harbours, fleet maintenance for the City and operates the airport and the conventional transit system. In the community, the department participated in Public Works Week to raise awareness of the jobs they do to keep Powell River running. The week included school visits to the public works yard and a colouring contest. Drawings by two Westview Elementary School students, Kyra King and Maylin Cairns, were chosen. Their colourful artwork now adorns the sides of two new garbage and recycling trucks.

CITY OF POWELL RIVER OPERATIONS MANAGER, SHAWN CATOR

ANNUAL REPORT 2018 | CITY OF POWELL RIVER 11

FIRST RESPONDERS The department’s community outreach included: • The PARTY Program for the prevention of alcohol and risk related trauma to youth • Wildfire Community Preparedness Day • A record number of people turned out for the Fire Prevention Week Open House • Fire Safety House, a joint initiative sponsored by Fire and Rescue In 2018, City Council approved the purchase of the department with the International a new fire apparatus at a cost of $709,685. The fire Association of Fire Fighters (IAFF) volunteering time truck replaced one that was 21-years old. • IAFF Celebrated 100 years A concept plan for an emergency services facility was • Fire Rescue was involved in fostering the Broom Busters program to combat a fire hazard and presented to Council. invasive species Fire Rescue responded to 928 calls, down from 1,093 • Car Seat Education in 2017. There was a significant decline in the num- • Pre-school and elementary school visits ber of first responder calls, from 767 in 2017 to 619 • Development reviews – worked with planning on many developments, business licenses and in 2018. occupancy reviews Significant fires occurred on Willow Avenue in September, Kamloops Street in January, Coastal Cookery in June, a bush fire behind the RCMP detachment in September and an RV fire on Alberni Street in October. The City of Powell River extends its gratitude to the brave men and women with Powell River Fire Rescue and Powell River RCMP for their unselfish service in protecting our community and providing for our safety 24/7.

12 ANNUAL REPORT 2018 | CITY OF POWELL RIVER

Training Highlights • Confined Space Operators course conducted by Dynamic Rope Rescue from Vancouver. This has increased the department’s ability to assess and respond to any confined space issues fire fighters might come across • Career Fire Fighter Training was a month long training program for all full-time members. This is important instruction as it’s the only time all full-time members are in one location to standardize crew training and enhance the department capabilities • Auxiliary Recruit courses saw 14 members sent to various live fire events on Vancouver Island for the purpose of testing and qualifying as “trained” fire fighters. The minimum time required for part-time fire fighters to become qualified and recognized by the province is approximately two and a half years. The new program follows the BC Fire Fighters Playbook, which sets out the minimum standards the province will allow • Career staff were put through the new resilient minds operations stress injury prevention program, helping the department mitigate the effects of operations stress injuries. ANNUAL REPORT 2018 | CITY OF POWELL RIVER 13

RCMP • break and enters up 10 per cent • theft under $5,000 up 40 per cent • shoplifting up 90 per cent • 125 reported assaults Thanks to the officers and staff of our RCMP, Powell • robbery down 25 per cent River is one of the safest communities in BC, ranked • sex offences down 10 per cent 110 out of 229 cities with populations over 10,000. • overall violent crime up 6 per cent The overall Crime Severity Index was down .04 per • property crime up 17 per cent cent to 65 per cent in 2018. The Canadian average is • direct investigations up 4 per cent • mental health complaints up 2 per cent 70.96 per cent. • drug traffic investigations up 6 per cent Members put in more than 100 volunteer hours for • one of the highest per capita overdose community events - mostly red serge for the likes of rates in the province Remembrance Day, Powell River Rotary clubs, minor • detachment has 27 officers sports and Cops for Cancer, with Cpl. Pete Gaiger riding on behalf of the Powell River RCMP detach- Overdose Task Force ment. Cops for Cancer involves first responders Powell River has the second highest overdose rate across the country and the Canadian Cancer Society, per capita in the Vancouver Coastal Health auto support children and families affected by child- thority. RCMP reported an alarming fact that evhood cancer. Since 1997, the program has raised ery seizure of heroin made by Powell River RCMP over $42 million to fund life-saving pediatric cancer in 2018 contained fentanyl. Powell River received $100,000 in funding from the Community Overresearch and support programs. dose Crisis Innovation Fund to combat the overRCMP responded to 5,750 calls for service in 2018, dose crisis. RCMP and Fire Rescue, along with up six per cent from 2017 with an increase in most Councillor Maggie Hathaway, joined the Community Action Team. statistics: We are proud of our police who are true to the core values of the RCMP; integrity, honesty, professionalism, compassion, respect and accountability.

14 ANNUAL REPORT 2018 | CITY OF POWELL RIVER

ADMINISTRATION On October 20, voters went to the polls in the general election to elect a new mayor and council. David Formosa was returned to office for his third term as Mayor. Also re-elected were long-time Councillors Maggie Hathaway and James Palm, Rob Southcott and CaroleAnn Leishman won second terms, and George Doubt and Cindy Elliott were elected to their first.

After years of sitting derelict in the middle of town, Council passed a remediation order for the demolition of the Inn at Westview. The City was able to come to an agreement with the owner for tearing down the building at no cost to the taxpayer.

Citizens of Powell River were reminded again of the special relationship between the City and our Tla’amin Nation neighbours when the City and Voter turnout was approximately 47 per cent, well Tla’amin re-signed the Community Accord. This is a above the 36.6 per cent voter turnout for the en- significant agreement and unique in this current petire province. A total of 4,843 votes were cast out of riod of reconciliation. 10,342 eligible voters. The Community Accord recognizes: The BC Supreme Court ruled in favour of a petition to declare Doubt’s election invalid because of voter All residents of Powell River and Tla’amin trace their eligibility. origin to societies of different cultural traditions, beliefs and values. In October 2018, the City was served a remediation order from the Agricultural Land Commission to re- Residents of the city and members of Tla’amin have move a section of the Hemlock Street statutory right created, or have had created on their behalf, distinct of way and return it to the Agricultural Land Reserve local governing institutions. (ALR). The order required that the City of Powell River remove the road and all fill from 0.2 hectares of Powell River and Tla’amin deem recognition, underALR land; remediate the property to similar or better standing and reconciliation the foundation of their agricultural standard than previously; and have the communities’ common good. Paramount is respect right of way removed from the title of the property. for and appreciation of each other’s diverse backTwo courses of action were taken, including an ap- grounds. peal and preparation of a plan to comply with the ruling.

ANNUAL REPORT 2018 | CITY OF POWELL RIVER 15

COUNCILLOR CAROLEANN LEISHMAN [LEFT] AND MANAGER OF RECREATION, NEIL PUKESH.

PLANNING SERVICES Sustainability In 2018 the City continued to act on becoming a leader in sustainability initiatives.

pump incentives offered up to $3,500 for switching from a fossil fuel powered heating system to an electric heat pump.

The Community Works Fund allocated $177,800 to One of the many achievements in addressing climate install LED upgrades for City Hall, Public Works change was promoting the use of electric vehicles (EV). Yard, Dwight Hall, and Willingdon Beach Campsite. Two new EV charging stations were installed at the Pow- The upgrade is to take place in 2019 and is projected ell River Public Library and the Recreation Complex. to save over $25,000 annually in hydro and mainteThe first EV was purchased for the Cityâ&#x20AC;&#x2122;s fleet; a 2017 nance costs. Ford Focus. Replacing gas-powered vehicles with electric versions will be reviewed on an ongoing The City funded a community-wide GHG emissions analysis which was completed by Climate Acbasis. tion Powell River in partnership with BC Institute of Penticton Trails was rezoned as a park to protect the Technology and Cora Hallsworth Consulting. area for the enjoyment of residents and reduce climate change. Preserving the park trees will generate The Recreation Complex installed a capacitor at an estimated cumulative carbon benefit of over 8,400 the Complex to eliminate BC Hydroâ&#x20AC;&#x2122;s power factor tonnes of carbon dioxide, equivalent to replacing charges, which saved the City over $16,000 a year in over 90 gas cars with electric for twenty years. Green- hydro costs. house gas emission (GHG) reductions from Penticton Trails and Millennium Park were used to achieve Parks, Recreation and Culture switched to larger garbage containers at City parks to reduce the frequency corporate carbon neutrality. of garbage pickups required. Funding to top-up EfficiencyBC rebates on heat 16 ANNUAL REPORT 2018 | CITY OF POWELL RIVER

DEVELOPMENT AND COMMUNITY PLANNING Schedule B Amendments Bylaw Number Adoption Date

Teeshohsum (Tla'amin IR1)

Powell Lake TA K U S T R EE T

Municipal Boundary

SK E E NA S TR E E T

1 LU

LO IS S TR E E T

CO L U M B IA S TR E E T

CHILCO AVENUE

SE T O N A VE N UE

E SUTHERLAND AVENU

KIN G A VEN UE

V T A

A V EN E

BAR

PO C

LO M

While the real estate market balanced out from the torrid pace of 2016 and 2017, planning for new residential developments in Powell River and business licenses issued grew substantially in 2018 over previous years. Building permits went up 114 per cent from 2014. Total construction value was up to $26,677,760 from $738,798 in 2014.

NA S S S TR E E T

MAPLE AV ENUE

S TR

STRE

RRY

NBE

Cr an La berr ke y

DR A K E S T R EE T

EET

CRA

NE L S ON A VE N U E

MA M

NE EN

2018 was a banner year for development in Powell River and a key sector in Powell River’s diversifying economy.

There were inroads made toward easing the pressure on the long-term rental shortage.

A RI N E A V EN U E M

TA N N ER A VEN U E

DUNCAN STRE ET

Ferry

GLA CI ER STR EET

H UN T IN G DO N S TR E E T JA S PE R S T R EE T

Urban Residential Low Density

ES TV IE W AV

LY TT O N S T R E ET

Urban Residential Single Family

Agriculture

Resource

G O R DO N A V EN U E

i sp ala M

Suburban Residential

NO OT KA S TREET

ra St

Waterfront Commercial/Industrial

O L IV E R S TR E E T

PEN T ICT ON STR EET

Water

Special Policy Areas Q UE S N E L S T R E ET

Airport Lands, RI CHM ON D S TR E E T

National Historic District Special Study Area Tla'amin Treaty Settlement Land*

* To be developed by Tla’amin under Tla’amin laws and zoning.

The impact of Airbnb and similar online platforms on long-term rentals was also the subject in drafting new bylaw amendments related to short-term rentals. In January, a community engagement process began, including an online survey, and regulations were drafted to present to Council following those public consultation sessions.

BO W N E S S A VE N U E

WHARF STREET

Urban Residential Medium Density

In the first full year under the bylaw regulating carriage houses, 12 applications were received. The City believes both higher density small lots and carriage houses will help alleviate the stress on inventory in long-term rentals.

BA R N E T S TR E E T

BURNABY STREET

T I S

land da Is Texa

Mixed Use Commercial/Residential

JOYC E AVENUE

Uptown Mixed Use

E LB

Comox Ferry

Employment Centre

COO K AVENUE

Millsite Industrial

MARINE AVENUE

Parks, Schools & Green Space

ONTARIO AVENUE

UE ON AVEN W IL L IN G D

Land Use Designations

MANSON AVENUE

FE RN W OOD A V E NU E

Bylaw 2370, 2014 Schedule B LAND USE DESIGNATIONS

M IC H IG A N A V E NU E

Bylaws were passed for the first Comprehensive Development Zone, which included development permit requirements for intensive residential/small lot subdivisions.

Kilometers

A $50,000 Partnering Agreement with Community Futures Association for the Marine Avenue Business Façade Improvement Program made available eight $2,500 grants for businesses with a single frontage and two grants of $5,000 for businesses on corner lots. Store owners had to match the grants. ANNUAL REPORT 2018 | CITY OF POWELL RIVER 17

City planners started the process of public consultation and drafting of a Development Permit Area that would establish, form and heritage guidelines for single and two-family residential properties in Townsite.

Development approvals for several major residential constructions in 2018 included:

• BC Housing Rapid response to Homelessness Programs housing at Joyce Avenue and Harvie Street Townsite Market opened, with 11 licenced business- • Lot 14 Fernwood Avenue with two buildings, es located in the Market and another five expected to with a total of 25-unit condominiums • Lot A Harwood Avenue – Phase 2 and 3 of open in 2019. Grandview Estates condominiums With the adoption of the Standalone Street Vending • Phase 2 and 3 of Pacific Point lofts and bylaw, rules and regulations were updated, clarified condominiums, and ground level commercial and simplified for operating ice cream trucks, food • Cedar Creek Estates Phase One Strata duplex carts, and all non-food vendors. townhomes • Sunset Homes 34-unit seniors affordable housing apartments • Westview Commons 12-units of strata row homes. 18 ANNUAL REPORT 2018 | CITY OF POWELL RIVER

BUILDING DEPARTMENT FACTS Year Building Permits

New Residential Units

Total Construction Value

Unit Type

2014

$7,381,791

13 single-family, 4 multi-family

2015

108

$9,119,881

25 single-family, 2 multi-family

2016

124

$14,937,995

30 single-family, 5 multi-family

2017

145

$14,088,436

37 single-family, 16 multi-family

2018

167

$26,677,760

38 single-family, 56 multi-family

PLANNING DEPARTMENT FACTS Application TYPE 2015 2016 2017 2018 Development Variance

Development Permits

Zoning / OCP Amendments

Subdivisions 9 23 16 17 New lots created 22 56 82 95 Tree Cutting Permits

Total Applications Received 20 52 49 68 Total Application $9,600 $27,425 $28,025 $58,625 Fees collected BUSINESS LICENCING FACTS Year

New Licences

Renewed Licences

Total

2014 49

585

634

2015 60

621

681

2016 81

683

764

2017 107

747

854

2018 124

749

873

ANNUAL REPORT 2018 | CITY OF POWELL RIVER 19

ECONOMIC DEVELOPMENT AND COMMUNICATIONS The department amended the Lease to Purchase Agreement with SantĂŠ Veritas Therapeutics Inc. (Now TILT Holdings) for the development of the former Catalyst administration building into a medical marijuana production facility. It also provided support to the company on several other In spring of 2018, the department conducted a com- levels, including power supply agreements and land munity consultation through townhalls and surveys assembly. regarding cannabis legalization, which helped to inform the development of municipal bylaws. In 2018, the Economic Development and Communications Department worked on a wide range of initiatives often with other community organizations to achieve the goals of economic diversification, and more effective communication with City residents.

20 ANNUAL REPORT 2018 | CITY OF POWELL RIVER

In 2018 multiple leases were completed including: • a 99-year lease with Gaoshi Holdings for development of 4.65 hectares of property at the Powell River Airport • units on the second floor of the Powell River Public Library building • 5401 Timberlane Avenue property across from Timberlane Park

It also worked with the Tla’amin Nation, qathet Regional District, School District 47 and Vancouver Island University on launching the Creative Economy and Innovation Initiative with matched funding from the Island Coastal Economic Trust. The focus of the initiative is to build upon an entrepreneurial culture in the region and foster business innovation.

Other activities in 2018 included: Land transactions in 2018 included the sale of 5815 • Completion of a new service agreement with Marine Avenue to Sunshine Investments, and the Tourism Powell River to provide visitor services transfer of Treaty Settlement Lands to Tla’amin Na- • Completion of Agricultural Land Capability Study of City Airport Reserve Lands tion • Development of a new City of Powell River website, With funding from the BC Rural Dividend Program, and strengthened internal and external the department completed the Farm Economy Plan communications in partnership with Powell River Farmers and Ag- • Conducted 120 interviews with local businesses ricultural Institute, School District 47, Vancouver through the Business Retention and Expansion Program Island University and Tla’amin Nation. ANNUAL REPORT 2018 | CITY OF POWELL RIVER 21

PARKS, RECREATION AND CULTURE The City is committed to Powell River becoming one of the most active communities in BC and when it comes to bringing the community together in its pursuit of the good life, the Parks, Recreation and Culture Department is the most active, operating and maintaining facilities, parks, trails, and playing fields that offer a wide variety of healthy, recreational opportunities and cultural activities. By hosting annual community events and offering a host of programs, including the arts, aquatic, fitness, arena, sport and community recreation programs, Parks and Recreation encourages healthy living, and enriches the quality of life for residents, visitors and future generations. An important success for the department was approval of the qathet Regional District Recreation Referendum in the 2018 general election. Voters in the three mainland electoral areas approved a maximum annual taxation totalling $178,500 to share the cost of operating the Recreation Complex with the City. 22 ANNUAL REPORT 2018 | CITY OF POWELL RIVER

The department joined its highly successful Block Party program to BC Healthy Communities Building Resilient Neighbourhoods program. The aim is to create stronger communities by bringing neighbours together. The City of Powell River was one of four participants in this pilot project. Everything was provided for a block party: how to conceive the idea; a $50 grant for planning and $200 for the event. Neighbourhoods were also provided with the new community event trailer, which included everything needed for a great block party: tables, chairs, games, BBQ, generator, and more. In 2018, 57 grants were given to community members to hold block parties and other neighbourhood resiliency building projects and over 2,795 neighbours participated. The development of strategic and action plans for the Seniors Community Council was completed. The seniors council advocates on behalf of Powell Riverâ&#x20AC;&#x2122;s seniors and worked with City staff and a consultant on its mission and vision statements, values, goals and objectives.

2018 Department Highlights • Introduced new registration software – ACTIVE Net • Launched new Parks, Recreation and Culture website, www.powellriverprc.ca • Purchased new playground equipment for Willingdon Beach • Recipient of Active Communities grant for enhanced trail signage, people counters • Ammonia plant enhancements and new alarms installed • Pool shutdown for maintenance, including tiling and grout work • Recreation Access Program introduced • Rick Hansen accessibility audit • Special Event Guide policy implemented • LED screen installed in Hap Parker Arena • Safety Committee formed • Recycling project introduced 2018 Grants Received • BCRPA Family Day • BCRPA Active After School • Age Friendly Seniors Grant • Active Communities Grant • Canada Day Heritage Grant • Resilient Streets • Summer Student Grants

$1,000 $1,800 $11,000 $34,500 $4,000 $20,000 $4,558

2018 Events • Family Day • Free Community Swim, Skate, and Gym, with over 700 in attendance • Annual Community Easter Egg Hunt, with over 2,500 in attendance

• Move for Health Day • 2nd Annual free community 5 km fun run/walk to encourage community members to get outside and get moving • Music in the Park • Over 180 people attended three free events held throughout the summer at Willingdon Beach featuring local musicians and bands • Hosted four disc golf tournaments throughout the summer with over 158 registrants • Canada Day brought together over 3,000 people to celebrate our nation’s birthday • The new Breakfast with Santa was a sold-out event 2018 Program Highlights • Over 5,240 people took part in registered programs, up 6 percent from 2017 • 202 registrations for summer camps • First Aid Courses started being offered and 23 certifications were issued • Seven new adult swimmers learned water safety and swimming skills • 28 Lifeguards certified, and 18 swimming instructors certified • 70 private swim lessons conducted • United Way partnership for monthly free swims • Over 107 registrations for 3-on-3 Spring Hockey • Over 180 midget drop-in skaters • Six teams registered for Rec League Hockey • Hosted 12 free, sold out Seniors Together events • Ran three Brave Heart Programs in partnership with Vancouver Coastal Health, Tla’amin Nation and the City of Powell River ANNUAL REPORT 2018 | CITY OF POWELL RIVER 23

INFORMATION TECHNOLOGY SERVICES • Questica – a multi-user budgeting system, which was implemented in 2018 to prepare the 2019-2023 Five-Year Financial Plan. The program improves efficiency, transparency and accountability in the bud• ACTIVE Net – a mature facility management sys- geting process. tem, which went live in August 2018 at the Recreation Complex and improves customer service, • Unit4 Cheque Writing – the software was impleinternal controls and integration with the City’s mented in June 2018 and has resulted in cost savings financial system. As a cloud-based program, it on licensing and support fees, and improved record reduces costly infrastructure requirements and meets keeping. Payment Card Industry compliance standards. • BMO Spend Dynamics – a purchasing card man• Marina Controller – a dedicated harbour manage- agement and reporting tool, which went live in Febment system, which went live in December 2018 and ruary 2018, streamlines administration while immeets the complexities associated with operating a proving internal reporting for spending analysis. harbour. The program provides higher-quality information, more efficient billing and customer service • Server room upgrades - to support a virtual environment, upgrades were made which will improve and is planned to integrate with the campsite. data backups and disaster recovery. In 2018, staff collaborated with the City’s IT professionals to deliver a variety of advancements, including:

24 ANNUAL REPORT 2018 | CITY OF POWELL RIVER

FINANCE The Finance Department’s longterm financial planning improved in 2018 through the implementation of new budget software. It was the second year that the City’s financial statements and year-end reporting was completed with the use of financial reporting software called CaseWare. The department also implemented the use of purchasing cards that reduced the time it was taking for small vendors to receive payment, which has aided in the improvement of relationships between the City and local vendors. A new budgeting system resulted in efficiency gains and higher-quality information to support better decision-making across the organization. In addition, the department revamped the City’s investment strategy to earn a higher rate of return.

Although the Finance Department is trying to move forward with technology there is the recognition of providing solid face-to-face services regarding taxation, utilities, grants and all other finance related services.

City of Powell River Consolidated Actual Versus Budget By Department For the Year Ended December 31, 2018 $35,000,000

$30,000,000

$25,000,000

$20,000,000

$15,000,000 Actual $10,000,000

Budget

$5,000,000

$‐

ANNUAL REPORT 2018 | CITY OF POWELL RIVER 25

PERMISSIVE TAX EXEMPTIONS FOR 2018 TAXATION YEAR ORGANIZATION Alano Club of Powell River BC Association of Seventh Day Adventists BC Association of Seventh Day Adventists Cranberry Community Hall Association Evangel Pentecostal Church Faith Lutheran Church Foursquare Gospel Church of Canada Glacier Park Bible Fellowship Governing Council of the Salvation Army Guru Arjan Dev Sikh Society of Powell River Inclusion Powell River Inclusion Powell River Inclusion Powell River Inclusion Powell River Life Cycle Housing Society Life Cycle Housing Society Life Cycle Housing Society Life Cycle Housing Society Life Cycle Housing Society Life Cycle Housing Society Life Cycle Housing Society Life Cycle Housing Society Nature Trust of BC Nature Trust of BC Powell River Academy of Music Powell River Bon Accueil Society Powell River Brain Injury Society Powell River Brain Injury Society Powell River Council for Arts and Culture Powell River Curling Club Powell River Employment Program Society Powell River Employment Program Society Powell River Employment Program Society Powell River Employment Program Society Powell River Employment Program Society Powell River Historical Museum & Archives Association Powell River Historical Museum & Archives Association (Forestry Museum) Powell River Italian Community Club Powell River Kiwanis Village Society Powell River Kiwanis Village Society Powell River Lawn Bowling Club Powell River Otago Rugby Football Club Powell River Regional Hospital District Powell River Regional Hospital District Powell River Regional Hospital District Powell River Search and Rescue Society Powell River Sunset Homes Society Powell River Sunset Homes Society President of Lethbridge Stake; Church of Jesus Christ of Latter Day Saints Roman Catholic Archbishop of Vancouver Royal Canadian Legion Branch 164 Senior Citzens Association of BC Branch #49 Synod of the Diocese of New Westminster The BC Society for the Prevention of Cruelty to Animals The Source Club Society The Trustees of the Powell Lake Congregation of Jehovahâ&#x20AC;&#x2122;s Witnesses Timberlane Barracks Committee, Scouts Canada, Scout Properties (BC/Yukon), Powell River Fine Arts Association, Star Dusters Square Dance Club Townsite Heritage Society of Powell River Westview Baptist Church Westview Flying Club Westview United Church

26 ANNUAL REPORT 2018 | CITY OF POWELL RIVER

CIVIC ADDRESS MUNICIPAL EXEMPTION 5903 Arbutus Ave $9,555 4880 Manson Ave 1,664 0 Manson Ave 430 6828 Cranberry St 2,223 5139 Manson Ave 5,101 4811 Ontario Ave 2,761 4640 Manson Ave 3,499 4620 Michigan Ave 1,793 4500 Joyce Ave 2,517 3850 Quadra Ave 1,631 6831 Artaban St 18,709 201 - 4675 Marine Ave 14,278 7055 Alberni St 8,575 4493 Marine Ave 2,679 6637 Cranberry St 568 6635 Cranberry St 570 6633 Cranberry St 572 6631 Cranberry St 572 6649 Cranberry St 574 6651 Cranberry St 565 6653 Cranberry St 565 6655 Cranberry St 565 0 Cranberry Lake 813 5570 Park Ave 7,480 7280 Kemano St 21,277 5110 Manson Ave 11,238 101 - 7020 Duncan St 1,665 Vacant Lot on Joyce Ave 620 Unit 215-6975 Alberni St 4,643 5750 Crown Ave 8,614 4752 Joyce Ave 4,183 #101-4511 Marine Ave 2,740 #102-4511 Marine Ave 2,346 #103-4511 Marine Ave 2,340 #104-4511 Marine Ave 2,738 4790 & 4798 Marine Ave 9,257 4815 Marine Ave 7,033 5866 Lund St 8,921 4943 Kiwanis Ave 2,160 4923 Kiwanis Ave 17,760 5714 Marine Ave 5,727 6821 Church St 3,002 0 Joyce Ave 4,877 4970 and 5000 Joyce Ave, 4980 Kiwanis Ave 9,123 5907 Arbutus St 7,088 6791 Drake St 3,385 4165 & 4167 Westview Ave 8,723 4156 Westview Ave 3,109 6952 Courtenay St 2,932 6121 Lois St 2,564 6811 Alexander St 4,638 6792 Cranberry St 10,589 6310 Sycamore St 2,465 7558 Duncan St 9,617 4476 Cumberland Place 1,563 4946 Manson Ave 3,181 5401, 5393, 5395, 5399 Timberlane Ave 12,785 6211 Walnut St 3676 Joyce Ave 7508 Duncan St 4440 Michigan Ave TOTAL

2,304 3,303 4,106 2,884 $303,760

2018 Council Grants-In-Aid Requests and Approvals Group/Organization

Project/Event

Cash

In-Kind

Total

Caregiver Support Group

Meeting rooms for groups with Alzheimer's or another dementia related disease

$424

Powell River Chamber of Commerce

Annual Business Award

776

Climate Action Powell River Society

Meeting rooms

1,553

Climate Action Powell River Society

Event on Earth Day

286

Powell River Yacht Club

4351 Marine Ave rental cost for 2018 ($646.70 per month)

7,760

Powell River Cycling Association

2018 BC Big Bike

5,419

Career Link

Annual Job Fair

536

Brooks Thunderbird Dry Grad Society

2018 Dry Grad

3,782

Powell River Young Naturalist

Young Naturalist meetings

200

Powell River Cycling Association

Bike to Work and School Week

500

Marine Area Business Association

Blackberry Festival and Santa Parade

2,000

Powell River and District Christmas Cheer Committee

Purchase food and toys/gift for inclusion in Christmas hampers

1,000

Powell River Gymnastics & Cheer

Assist up to 100 parents to attend drop-in with their children with subsidized insurance

1,250

Hands Across the Water

6 month bus and Recreation Complex passes for 2 adults, 3 children

1,728

Inclusion Powell River, FASD Committee

A banner to bring awareness to Fetal Alcohol Spectrum Disorder Day

833

Powell River District United Way (Success By 6)

Ages and Stages Event

762

Powell River Pride Society

Powell River Pride Events

500

Powell River Hospice Society

The Hospice Volunteer Training and Coordination Program

5,000

Powell River Health Care Auxiliary

Annual Fall Bazaar

838

Powell River Action Centre Food Bank Society

Powell River Food Bank activities

5,000

Powell River Logger Sports

Powell River Logger Sports activities

6,500

1,606

8,106

Hɛhɛwšɩn Organizing Committee

Calling Home the Spirit Ceremony

800

Powell River Minor Hockey Association

3,500

Wild Ocean Whale Society

World of Whales presentations and workshops

1,259

School District 47

Donation of 19 semester bus passes as per Youth Council recommendation

1,995

Remembrance Day Service

345

Total

$23,383

$32,771

$56,154

The Royal Canadian Legion

ANNUAL REPORT 2018 | CITY OF POWELL RIVER 27

Powell River Community Forest Grants 2018 Community Projects Powell River Parks and Wilderness Society Sunshine Coast Trail, north end shelter and misc. Zackeryâ&#x20AC;&#x2122;s Social Network Society K-Lumet Pilot Project Powell River Curling Club New ice plant Wild Ocean Whale Society New ocean viewpoints and binoculars Knuckleheads Winter Recreation Association Sentinel backcountry cabin - 2nd top up Ohtaqken Canoe Paddle Project Paddle, mast, and sail for tribal journey Gillies Bay Volunteer Fire Department Mobile structural protection unit for Texada Island Powell River Employment Program New lease space at Crossroads Village Cadet Core of Powell River with support of Indoor facility and targets BC Target Sports Association Vancouver Coastal Health Double wall oven Powell River Gymnastic Club Replace foam pit Powell River Public Library PRPL fundraising Paddling for Life Society New dragon boat Powell River United Way Success By 6 - New ORCA bus Powell River Community First Aid Team Society Community ambulance Powell River Sunrise Rotary Shelter at dog park Powell River Chamber of Commerce Office renovations 100+ Women Who Care Matching donation Powell River Employment Program Society Office renovations Powell River Villa Soccer Club Covered spectator seating Total Community Projects City Projects North Harbour Parks Parks Parks Timberlane building Museum Centennial building Parks Powell River Aces Volleyball Club Sports Hall of Fame Ash Street 28 ANNUAL REPORT 2018 | CITY OF POWELL RIVER

$73,304 36,290 150,000 35,729 15,000 14,235 23,000 130,000 14,545 6,365 60,000 250,000 10,000 137,500 40,500 5,500 25,000 35,000 85,000 223,597 1,370,565

Project / Event Approved Amount Launching ramp improvements 200,000 Park signage upgrades 30,000 Playground equipment for DA Evans, Grief Point, and Lindsay Parks 67,000 Disabled seating and pathways for Loggers Memorial Bowl 10,000 Cedar shake siding on Timberlane washroom building 10,000 Cedar shake siding Museum Centennial Building 25,000 Playground equipment for Grief Point Park and Willingdon Beach 45,000 Beach volleyball courts 50,000 Displays 39,175 Heritage street lights 103,250 Total City Projects 579,425 Total $1,949,990

City of Powell River

Consolidated Financial Statements December 31, 2018

ANNUAL REPORT 2018 | CITY OF POWELL RIVER 29

CONTENTS Page Management Statement of Responsibility Independent Auditor's Report Consolidated Financial Statements & Notes: Consolidated Statement of Financial Position

Consolidated Statement of Operations

Consolidated Statement of Change in Net Financial Assets

Consolidated Statement of Cash Flows

Notes to the Consolidated Financial Statements

Schedules: 1. Long-Term Debt

2. Tangible Capital Assets

3. Tax Levies

4. Sale of Services

5. Other Revenue

6. Utility User Fees

7. Powell River Public Library

8. Powell River Power Development Corporation

9. Powell River Waterfront Development Corporation

10. General Government

11. Transportation Services

12. Environmental and Public Health

13. Protective Services

14. Recreation and Cultural Services

15. Environmental Development

16. Water and Sewer Utilities

17. Reserves

18. Financial Activities - by Segment

30 ANNUAL REPORT 2018 | CITY OF POWELL RIVER

City of Powell River Management Statement of Responsibility The accompanying consolidated financial statements of The City of Powell River (the "City") are the responsibility of management and have been prepared in accordance with Canadian public sector accounting standards established by the Public Sector Accounting Board of Chartered Professional Accountants of Canada. A summary of the significant accounting policies is disclosed in Note 1 to the consolidated financial statements. The City's management maintains a comprehensive system of internal controls designed to ensure assets are safeguarded, transactions are properly authorized and recorded in compliance with legislative and regulatory requirements, and reliable financial information is available on a timely basis for preparation of the financial statements. These systems are monitored and evaluated by management. Mayor and Council meet with management and the external auditors to review the financial statements and discuss any significant financial reporting or internal control matters prior to their approval of the financial statements. The financial statements have been audited by BDO Canada LLP, independent external auditors appointed by the City. The accompanying Independent Auditor's Report outlines their responsibility, the scope of their examination and their opinion on the City's financial statements.

Mallory Denniston, MPAcc, CPA, CA Manager of Accounting Services

Adam Langenmaier, BBA, CPA, CA Chief Financial Officer

Russell Brewer Chief Administrative Officer

ANNUAL REPORT 2018 | CITY OF POWELL RIVER 31

Tel: 604 688 5421 Fax: 604 688 5132 vancouver@bdo.ca www.bdo.ca

BDO Canada LLP 600 Cathedral Place 925 West Georgia Street Vancouver BC V6C 3L2 Canada

Independent Auditor’s Report To the Mayor and Council of the City of Powell River We have audited the consolidated financial statements of the City of Powell River (“the Consolidated Entity”) which comprise the Consolidated Statement of Financial Position as at December 31, 2018 and the Consolidated Statements of Operations, Changes in Net Financial Assets, and Cash Flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information. In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of the Consolidated Entity as at December 31, 2018 and its consolidated results of operations, its consolidated change in net financial assets, and its consolidated cash flows for the year then ended in accordance with Canadian public sector accounting standards. Basis for Opinion We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of this report. We are independent of the Consolidated Entity in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Canada and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of the 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. In preparing the consolidated financial statements, management is responsible for assessing the Consolidated Entity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Consolidated Entity, or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Consolidated Entity’s financial reporting process.

BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms.

32 ANNUAL REPORT 2018 | CITY OF POWELL RIVER

Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements. As part of an audit in accordance with Canadian generally accepted auditing standards we exercise professional judgment and maintain professional skepticism throughout the audit. We also: -

Identify and assess the risks of material misstatement of the consolidated financial statements whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. But not for the purpose of expressing an opinion on the effectiveness of the Consolidated Entityâ&#x20AC;&#x2122;s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Consolidated Entityâ&#x20AC;&#x2122;s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However future events or conditions may cause the Consolidated Entity to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the ďŹ nancial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Chartered Professional Accountants Vancouver, British Columbia May 13, 2019

ANNUAL REPORT 2018 | CITY OF POWELL RIVER 33

City of Powell River

Consolidated Statement of Financial Position

Financial Assets Cash and cash equivalents Portfolio investments (Note 2) Accounts receivable (Note 3) Dividends receivable (Note 4) Municipal Finance Authority deposit (Note 5) Investment in Powell River Community Forest Ltd. (Note 4) Investment in PRSC entities (Note 6)

$ 16,836,256 12,148,814 2,797,979 2,518,576 179,208 1,987,525 -

Liabilities Accounts payable and accrued liabilities (Note 7) Employee benefit obligations (Note 8) Deferred revenue (Note 9) Long-term debt (Note 10) and (Schedule 1)

Net Financial Assets Non-Financial Assets Tangible capital assets (Note 11) and (Schedule 2) Inventory Prepaid expenses

Accumulated Surplus (Note 12)

Adam Langenmaier, BBA, CPA, CA Chief Financial Officer

2017 (Note 19)

2018

At December 31, 2018

36,468,358

32,874,957

4,560,748 518,742 3,628,362 13,107,532

5,500,860 554,742 3,935,892 13,254,578

21,815,384

23,246,072

14,652,974

9,628,885

105,519,805 2,693,162 212,184

103,358,875 485,465 239,622

108,425,151

104,083,962

$123,078,125

$113,712,847

David Formosa Mayor

The accompanying notes are an integral part of these consolidated financial statements

34 ANNUAL REPORT 2018 | CITY OF POWELL RIVER

1,196,603 22,288,708 4,963,068 2,130,450 222,939 1,107,173 966,016

City of Powell River

Consolidated Statement of Operations For the Year Ended December 31, 2018 Revenue (Note 17) Property taxes and grants in lieu (Schedule 3) Sale of services (Schedule 4) Other revenue (Schedule 5) Utility user fees (Schedule 6) Government transfers Interest and investment income Powell River Public Library (Schedule 7) Powell River Power Development Corporation (Schedule 8) Powell River Waterfront Development Corporation (Schedule 9) Investment Earnings, Powell River Community Forest (Note 4) Developer contributions (Note 15)

Expenses (Note 17) General Government Services (Schedule 10) Transportation Services (Schedule 11) Environmental and Public Health Services (Schedule 12) Protective Services (Schedule 13) Recreation, Parks, and Cultural Services (Schedule 14) Environmental Development (Schedule 15) Water Utility (Schedule 16) Sewer Utility (Schedule 16) Powell River Public Library (Schedule 7) Powell River Power Development Corporation (Schedule 8) Powell River Waterfront Development Corporation (Schedule 9) Fiscal services & debt charges (Schedule 18)

Annual Surplus Accumulated Surplus, Beginning of Year Accumulated Surplus, End of Year

Budget 2018 (Note 16)

Actual 2018

Actual 2017

$ 17,590,179 5,295,407 1,245,788 5,335,594 22,344,312 333,559 467,681 900,000 -

$ 17,583,535 5,618,864 1,563,235 5,318,924 2,867,830 789,067 615,161 1,277,414 3,398,928 1,332,130

$ 16,861,657 5,276,781 1,320,781 5,227,684 3,819,743 522,075 1,078,864 427 350,221 2,193,638 658,396

53,512,520

40,365,088

37,310,267

6,953,557 4,888,659 529,502 6,784,534 5,250,178 1,134,930 1,977,617 3,432,491 865,473 595,848

7,501,496 5,215,254 496,769 5,686,688 5,068,527 1,136,880 1,617,581 2,651,417 1,022,826 9,954 48,911 543,507

7,277,489 4,992,103 593,806 5,847,004 5,192,252 995,903 1,572,681 2,873,864 1,289,027 401,107 611,410

32,412,789

30,999,810

31,646,646

21,099,731

9,365,278

5,663,621

113,712,847

108,049,226

$134,812,578

$123,078,125

$113,712,847

The accompanying notes are an integral part of these consolidated financial statements

ANNUAL REPORT 2018 | CITY OF POWELL RIVER 35

City of Powell River

Consolidated Statement of Change in Net Financial Assets Budget 2018

For the Year Ended December 31, 2018 Annual Surplus Acquisition of tangible capital assets Contributed equipment put in service Developer contributions Amortization (Gain) loss on disposal of tangible capital assets Proceeds on sale of tangible capital assets

$ 21,099,731 $ 9,365,278 $ 5,663,621 (30,229,993) (4,196,389) (9,195,530) (10,000) (1,332,130) (658,396) 3,857,000 3,246,984 3,533,308 51,054 (663) 79,551 36,060 7,204,348

(621,600)

(2,207,697) 27,438

(104,049) 50,952

(2,180,259)

(53,097)

(5,273,262)

5,024,089

(674,697)

9,628,885

4,355,623

$ 14,652,974

(5,273,262) Change in inventories Change in prepaid expenses

Increase (Decrease) in Net Financial Assets Net Financial Assets, Beginning of Year Net Financial Assets, End of Year

The accompanying notes are an integral part of these consolidated financial statements

36 ANNUAL REPORT 2018 | CITY OF POWELL RIVER

Actual 2017

Actual 2018

10,303,582 $

9,628,885

City of Powell River

Consolidated Statement of Cash Flows 2017 (Note 19)

2018

For the Year Ended December 31, 2018 Cash Provided by (Used for) Operating Transactions Annual surplus Items not Involving Cash Amortization Loss (gain) on disposal of tangible capital assets Change in employee benefits Municipal Finance Authority actuarial adjustments Developer contributions Changes in non-cash operating assets and liabilities Accounts receivable Dividends receivable Municipal Finance Authority deposit Accounts payable and accrued liabilities Deferred revenue Inventory Prepaid expenses Investment Transactions Portfolio investments Investment in related parties Capital Transactions Aquisition of tangible capital assets Contributed equipment put in service Proceeds from sale of tangible capital assets Financing Transactions Debt repayment Proceeds from borrowing

9,365,278

3,246,984 51,054 (36,000) (198,557) (1,332,130)

3,533,308 (663) (66,000) (176,697) (658,396)

2,165,089 (388,126) 43,731 (940,112) (307,530) (2,207,697) 27,438

(3,070,065) (154,811) (4,266) 1,060,981 1,289,714 (104,049) 50,952

9,489,422

7,363,629

10,139,894 85,664

1,026,113 685,307

10,225,558

1,711,420

(4,196,389) (10,000) 79,551

(9,195,530) 36,060

(4,126,838)

(9,159,470)

(768,489) 820,000

(1,194,553) 1,213,000

51,511 Increase (decrease) in Cash and Cash Equivalents Cash and Cash Equivalents, Beginning of Year Cash and Cash Equivalents, End of Year

5,663,621

18,447

15,639,653

(65,974)

1,196,603 $ 16,836,256

The accompanying notes are an integral part of these consolidated financial statements

1,262,577 $

1,196,603

ANNUAL REPORT 2018 | CITY OF POWELL RIVER 37

City of Powell River

Notes to the Consolidated Financial Statements For the Year Ended December 31, 2018

Significant Accounting Policies (a)

Basis of Presentation (i) The Consolidated Financial Statements of the City of Powell River (the "City") are prepared in accordance with Canadian public sector accounting standards ("PSAS") established by the Public Sector Accounting Board of the Chartered Professional Accountants Canada. The Consolidated Financial Statements reflect the combined results and activities of the reporting entity which comprises all organizations that are controlled by the City. The City controls the Powell River Public Library, the Powell River Waterfront Development Corporation, Powell River Power Development Corporation and Powell River Community Forest Ltd. The City applies such accounting principles consistently. The financial resources and operations of the various funds of the City have been consolidated for financial statement purposes, while each fund is treated as a separate entity with responsibility for the stewardship of the assets allocated to it. The consolidated statements include the operations of General, Water, Sewer, Reserve, Powell River Public Library, Powell River Waterfront Development Corporation, and the Powell River Power Development Corporation funds. (ii) Powell River Community Forest Ltd. is a government business enterprise and is accounted for on a modified equity basis.

(b)

Reserve Accounts Reserve accounts are non-statutory reserves for future expenditures, which represent an allocation of accumulated surplus for specific purposes. Reserve accounts receive an allocation of interest earned based on the average balance in each reserve account. The transfers out of the reserve accounts are based on the actual annual expenditures incurred during the year.

(c)

Revenue Recognition (i) Taxes are recorded at estimated amounts when they meet the definition of an asset, have been authorized, and the taxable event occurs. Annual levies for non-optional (legislated) municipal services, including general administrative services, are recorded as taxes for municipal services in the year they are levied. Taxes receivable are recognized net of an allowance for anticipated uncollectible amounts. Levies imposed by other taxing authorities are not included as taxes for municipal purposes. Through the British Columbia Assessment Authority appeal process, taxes may be adjusted by way of supplementary roll adjustments. The affects of any adjustments, in excess of those previously estimated, are recognized at the time the Property Assessment Appeal Board accepts the recommendations and orders the Assessor to amend the assessment roll. (ii) Government transfers, which include legislative grants, are recognized as revenue in the financial statements when the transfer is authorized and any eligibility criteria are met except to the extent that transfer stipulations give rise to a liability. Transfer revenue is recognized in the statement of operations as the stipulation liabilities are settled. Unconditional government transfers are recognized when received or receivable.

38 ANNUAL REPORT 2018 | CITY OF POWELL RIVER

City of Powell River

Notes to the Consolidated Financial Statements For the Year Ended December 31, 2018

Significant Accounting Policies (Continued) (c)

Revenue Recognition (Continued) (iii) Charges for sewer and water usage are recorded as user fees. Connection fee revenues are recognized when the connection has been established. (iv)Sales of service and other revenue are recognized when the services have been provided and collection is reasonably certain.

(d)

Cash and Cash Equivalents Cash equivalents consist of short-term investments that are liquid with maturity dates of less than 90 days from acquisition. In addition, cash equivalents include investments in Municipal Finance Authority money market funds that are recorded at fair value, which approximates cost.

(e)

Financial Instruments Financial instruments consist of cash and cash equivalents, portfolio investments, accounts receivable, dividends receivable, accounts payable and accrued liabilities, and long term debt. Unless otherwise noted, it is managementâ&#x20AC;&#x2122;s opinion that the City is not exposed to significant interest rate, currency or credit risks arising from these financial instruments.

(f)

Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results will depend on future economic events and could differ from those estimates. Significant areas requiring management estimates relate to the determination of accrued sick benefits and retirement liability, collectability of accounts receivable, the useful lives of tangible capital assets for amortization calculations, and assessment of contaminated sites liabilities.

(g)

Non-Financial Assets Non-financial assets are not available to discharge existing liabilities and are held for use in the provision of goods and services. They may have useful lives extending beyond the current year and are not intended for sale in the ordinary course of operations.

ANNUAL REPORT 2018 | CITY OF POWELL RIVER 39

City of Powell River

Notes to the Consolidated Financial Statements For the Year Ended December 31, 2018

Significant Accounting Policies (Continued) (g)

Non-Financial Assets (Continued) (i)

Tangible Capital Assets Tangible capital assets are comprised of capital assets and capital work in progress, which are recorded at cost and include amounts that are directly attributable to the acquisition, construction, development or betterment of the asset. The cost, less residual value of the capital asset is amortized commencing when the asset is put into service on a straight-line basis over their estimated useful life, as follows: Years Land

Indefinite

Land Improvements

15 to 100

Buildings

15 to 100

Equipment

5 to 45

Road Infrastructure

20 to 100

Water

20 to 100

Sewer

7 to 110

Drainage

40 to 100

Marine and Airport Infrastructure

15 to 150

Subdivision streets, lighting, sidewalks, drainage and other infrastructure are required to be provided by subdivision developers. Upon completion, they are turned over to the City for no consideration and recorded as assets at the cost to the developers which approximates fair value. The City is not involved in the construction and does not budget for either the contribution from the developer or the capital expenditure in its annual bylaw. The tangible capital assets at the Powell River Public Library are presented as a separate line item in Schedule 2 for financial presentation purposes. The Powell River Public Library holds various tangible capital assets and applies a policy consistent with the City. Intangible capital assets such as water rights are not recorded in the financial statements. (ii)

Assets Under Construction Tangible Capital Assets classified as assets under construction are not amortized until the construction is complete and the asset is brought into service

(iii)

Inventory Inventories are recorded at the lower of cost and replacement cost. Cost is generally determined on an average cost basis.

40 ANNUAL REPORT 2018 | CITY OF POWELL RIVER

City of Powell River

Notes to the Consolidated Financial Statements For the Year Ended December 31, 2018

Significant Accounting Policies (Continued) (h)

Liability for Contaminated Sites The City has adopted the Public Sector Accounting Standard PS3260 Contaminated Sites, which requires governments to accrue a liability for the costs to remediate a contaminated site. Liabilities are recognized when an environmental standard exists, contamination exceeds the standard, the government has responsibility for remediation, future economic benefits will be given up and a reasonable estimate can be made. Management has assessed its potential liabilities under this standard including sites that are no longer in productive use and sites which the City accepts responsibility. There were no such sites that had contamination in excess of an environmental standard which required remediation at this time, therefore no liability has been recorded as at December 31, 2018. The City purchased land in 2017 for the consolidated waste water treatment plant. A portion of this land contains contaminants, and the City is in the process of assessing if there is a liability, which can be determined after the consolidated waste water treatment plant is built. The potential liability is a contingency described in note 13(a)(iii).

Portfolio Investments

2018 Term deposit MFA bond fund

2017

$10,000,000 $20,177,000 2,148,814

2,111,708

$12,148,814 $22,288,708 The City's portfolio investments consist of a term deposit held at the First Credit Union and Municipal Finance Authority bond funds. The term deposit earns interest at 3.10% and matures December 5, 2019. 3.

Accounts Receivable 2018 Government transfers receivable

2017

$ 1,126,372 $ 2,329,720

General and accrued interest

786,058

1,578,353

Property taxes

884,480

930,367

32,080

152,083

Other governments Other reporting entities Allowance for doubtful accounts

7,034

17,610

(38,045)

(45,065)

$ 2,797,979 $ 4,963,068 As at December 31, 2018, government transfers receivable includes a grant receivable of $683,358 for the Haslam Lake water pipeline (2017 - $2,035,078).

ANNUAL REPORT 2018 | CITY OF POWELL RIVER 41

City of Powell River

Notes to the Consolidated Financial Statements For the Year Ended December 31, 2018

Investment in Powell River Community Forest Ltd. Powell River Community Forest Ltd. (PRCF) is a government business enterprise and is accounted for on the modified equity basis. 2018 Cost of investment Equity earnings Accumulated net equity, beginning of year Net income during the year Dividends receivable Accumulated net equity, end of year

2017 1 $

1,107,172

1,043,984

1,107,173 3,398,928

1,043,985 2,193,638

(2,518,576)

(2,130,450)

$ 1,987,525 $ 1,107,173

2018

2017

Statement of Financial Position Total assets

$ 5,116,997 $ 3,936,122

Total liabilities

3,129,472

2,828,949

Total equity

1,987,525

1,107,173

5,116,997

3,936,122

5,837,160

4,291,606

2,438,232

2,097,968

Statement of Comprehensive Income Revenue Expenses Net earnings

$ 3,398,928 $ 2,193,638

42 ANNUAL REPORT 2018 | CITY OF POWELL RIVER

City of Powell River

Notes to the Consolidated Financial Statements For the Year Ended December 31, 2018

Debt Reserve Fund The Municipal Finance Authority of British Columbia provides capital financing for regional districts and their member municipalities. The Authority is required to establish a Debt Reserve Fund. Each regional district through its member municipalities who share in the proceeds of a debt issue is required to pay into the Debt Reserve Fund certain amounts set out in the debt agreements comprised of a cash deposit portion and a demand note commitment. The Authority pays into the Debt Reserve Fund these monies from which interest earned thereon less administrative expenses becomes an obligation to the regional districts. It must then use this fund, if at any time there are insufficient funds, to meet payments on its obligations. When this occurs the regional districts may be called upon to restore the fund. The member municipalities are in turn contingently liable for this potential obligation. As the demand notes are contingent in nature, and the City does not currently believe they will be required, no amount has been recorded. Upon the maturity of a debt issue the unused portion of the Debt Reserve Fund established for that issue will be discharged to the City. The proceeds from the cash deposit and earnings upon discharge will be credited to income in the year they are received. As at December 31, 2018 the total of the Debt Reserve fund was comprised of:

Cash deposits plus interest

Demand notes $

2018

2017

179,208 $

222,939

249,011

321,328

428,219 $

544,267

ANNUAL REPORT 2018 | CITY OF POWELL RIVER 43

City of Powell River

Notes to the Consolidated Financial Statements For the Year Ended December 31, 2018

Investment in PRSC Entities Powell River Waterfront Development Corporation (PRWDC) held a 50% interest in PRSC Limited Partnership and PRSC Land Developments Ltd. The PRSC entities were dissolved in fiscal 2018 and accordingly will no longer be an investment held by PRWDC. PRSC Limited Partnership was dissolved on November 26, 2018 and PRSC Land Developments Ltd. was dissolved on November 27, 2018. PRWDC is controlled by the City and is consolidated with the City’s financial statements. 2018

2017

Investment in PRSC Limited Partnership A limited partnership of two limited partners and one general partner formed the PRSC Limited Partnership to carry out the business of acquiring, developing, operating and selling lands in the City. The two limited partners were Tees’kwat Land Holdings Ltd., and PRWDC (which held 50% of the limited partnership units). The general partner, PRSC Land Developments Ltd., managed the business of the Partnership pursuant to the terms and conditions set forth in the Limited Partnership $ Agreement.

- $

Investment in PRSC Land Development Ltd. (shares and loans) PRSC Land Developments Ltd. (PRSC) was 50% owned by PRWDC with the remainder held by Tees’kwat Land Holdings Ltd. The sole mission of PRSC was to act as the general partner of the PRSC Limited Partnership. PRSC was the general partner and carried out the course of business of the Partnership in a manner pursuant to the terms and conditions set forth in the PRSC Limited Partnership agreement and shareholders'/unitholders' agreement.

- $

965,971

45 966,016

Condensed Supplementary Financial Statements Information of PRSC Limited Partnership 2018 Statement of Financial Position Total assets

3,609,431 27,436

3,581,995

- $

3,609,431

5,970,461 $

330,002

Partners' capital

(3,567,190)

Expenses Net income (loss)

- $ -

Total liabilities

Statement of Comprehensive Income Revenue

2017

2,403,271 $

(342,246) (12,244)

44 ANNUAL REPORT 2018 | CITY OF POWELL RIVER

City of Powell River

Notes to the Consolidated Financial Statements For the Year Ended December 31, 2018

Investment in PRSC Entities (Continued) Condensed Supplementary Financial Statements Information of PRSC Land Development Ltd. Statement of Financial Position Total assets Total liabilities

2018

- $

- $ -

Shareholders' equity (deficiency)

Statement of Comprehensive Income Revenue

7,199 27,842 (20,643)

- $

7,199

33,195 $

(12,552)

Expenses Net income (loss)

2017

20,643 $

(5,192) (5,192)

Accounts Payable and Accrued Liabilities 2018 Accounts payable General Wages payable Other reporting entities Holdbacks

Accrued liabilities Deposits and other Payroll benefits

2017

$ 1,588,067 $ 2,505,943 723,591

838,956

70,797

247,617

121,799

388,539

2,504,254

3,981,055

1,822,332

1,328,553

234,162

191,252

2,056,494

1,519,805

$ 4,560,748 $ 5,500,860 8.

Employee Benefit Obligations The City provides sick leave, termination benefits and supplemental vacation to various groups of employees. The most recent actuarial valuation of the Cityâ&#x20AC;&#x2122;s employee future benefit obligations was undertaken as at December 31, 2018 and was finalized on April 8, 2019 by independent actuaries. The information presented in this note is based upon the actuarial report. It is presented using a projected benefit actuarial valuation method prorated on services, to be reviewed on a periodic basis.

ANNUAL REPORT 2018 | CITY OF POWELL RIVER 45

City of Powell River

Notes to the Consolidated Financial Statements For the Year Ended December 31, 2018

Employee Benefit Obligations (Continued) Accumulated sick leave represents the liability for sick leave banks accumulated for possible draw down at future dates. Termination benefit payments represent the City’s share of the cost to provide employees with various benefits, including severance payments, lump sum retirement payments and accumulated sick bank and vacation entitlements. Accumulated supplemental vacation represents the liability for vacation time that certain groups of employees are entitled to in the future as either paid vacation or, upon termination, as a lump sum payment. Information regarding the City’s obligations for these benefits is as follows:

Accrued Benefit Liability Beginning of year

2018

2017

492,000 $

518,000

Current service cost

55,000

56,000

Actuarial losses

68,000

30,000

Interest on accrued benefit obligations Benefit payments Accrued Benefit Obligation, End of Year Accrued Benefit Obligation, End of Year

Plus unamortized net actuarial gains (losses) Accrued Benefits Liability, End of Year Powell River Public Library Consolidated Accrued Benefits Liability, End of Year

15,000

(97,000)

(127,000)

533,000

492,000

533,000 $

492,000

(38,000)

39,000

495,000 23,742

531,000 23,742

518,742 $

554,742

The accrued benefit liability is included as employee benefit obligations on the statement of financial position. The significant actuarial assumptions adopted in measuring the City’s accrued benefit liability are as follows: 2018

2017

Discount Rates

3.00 %

Expected Wage and Salary Increases

3.00 %

46 ANNUAL REPORT 2018 | CITY OF POWELL RIVER

City of Powell River

Notes to the Consolidated Financial Statements For the Year Ended December 31, 2018

Deferred Revenue 2018 Prepaid taxes

2017

$ 1,753,462 $ 1,792,078

Development cost charges (DCC)

997,487

753,375

Other

841,090

328,728

Other entities

19,170

117,527

Recreation

10,669

67,451

6,484

28,795

847,938

Prepaid utilities Grants

$ 3,628,362 $ 3,935,892 Property owners may prepay taxes on an instalment basis for the following tax year. Prepaid taxes in the amount of $1,753,463 will be applied to the owners 2019 current tax balance. The owner may request a full refund of the prepayment anytime before the prepaid balance has been transferred to the current taxes owing. Certain City services and fees are sometimes paid in advance and are recognized as revenue as they become due. This includes business licenses, harbour moorage, dog licenses, utilities, leases and other fees. The City may on occasion receive grant funding for projects prior to the commencement of the project. The grant revenue will be recognized as the project expenditures occur. Development Cost Charges are collected from developers for the purpose of funding new infrastructure as a direct result of capacity demand. Funds are collected as per the DCC bylaws and rates schedule for parkland, water facility, sewer facility and storm infrastructure. The funds will remain as deferred revenue and recognized as revenue when used to develop new infrastructure. 10. Long-term debt The City issues debt instruments through the Municipal Finance Authority, pursuant to security issuing bylaws under authority of the Local Government Act, to finance certain capital expenditures. A detailed listing of long-term debt is disclosed in Schedule 1. Future aggregate payments of net outstanding debenture debt over the next five years and thereafter is summarized, as follows: 2019

$ 2,338,835

2020

918,861

2021

603,627

2022

374,619

2023

388,355

Thereafter Total

8,483,235 $ 13,107,532 14

ANNUAL REPORT 2018 | CITY OF POWELL RIVER 47

City of Powell River

Notes to the Consolidated Financial Statements For the Year Ended December 31, 2018

11. Tangible Capital Assets 2018

2017

Tangible Capital Assets consist of the following: General

$ 68,803,098 $ 68,325,641

Water

20,242,851

19,833,057

Sewer

15,792,436

14,454,628

681,420

745,549

Other reporting entities

$ 105,519,805 $ 103,358,875 A detailed tangible capital asset listing is disclosed in Schedule 2.

48 ANNUAL REPORT 2018 | CITY OF POWELL RIVER

City of Powell River

Notes to the Consolidated Financial Statements For the Year Ended December 31, 2018

12. Accumulated Surplus 2018 Operating Fund Surplus (Deficit) General Operating Fund

3,248,332 $

2017 (Note 19) 1,395,813

Sewer Operating Fund

574,373

580,887

Water Operating Fund

1,162,049

473,604

Investment in Powell River Community Forest Ltd.

1,987,525

1,107,173

443,204

135,196

Powell River Public Library Powell River Power Development Corporation Powell River Waterfront Development Corporation Appropriated Surplus Reserve Accounts (Schedule 17) Reserve Fund Balance (Schedule 17)

Investment in Tangible Capital Assets Accumulated Surplus

(9,954) 987,471

(16,923) (241,032)

11,046,159

10,483,973

9,908,932

8,441,069

29,348,091

22,359,760

93,730,034

91,353,087

$123,078,125 $113,712,847

ANNUAL REPORT 2018 | CITY OF POWELL RIVER 49

City of Powell River

Notes to the Consolidated Financial Statements For the Year Ended December 31, 2018

13. Contingencies, Commitments, and Contractual Rights and Obligations (a)

General (i) The City, as a member of the Powell River Regional District and the Powell River Regional Hospital District, is jointly and severally liable for its proportion of any operating deficit or capital debt related to functions in which it participates. (ii) The loan agreements with the Municipal Finance Authority provide that if the Authority does not have sufficient funds to meet payments on its obligations it shall make payments from the Debt Reserve fund which in turn is established by a similar Debt Reserve Fund in the City and all other borrowing participants. If the Debt Reserve Fund is deficient the Authorityâ&#x20AC;&#x2122;s obligations become a liability of the Regional District and may become a liability of the participating municipalities. No amounts are currently recorded for this contingent liability. (iii) The City is reviewing potential environmental liabilities for its properties, including potential site reclamation obligations associated with the land purchased in 2017 for the waste water treatment plant. The amount and likelihood of any such obligations are not presently determinable as described in note 1(g).

(b)

Demand Notes The City has issued demand notes to the Regional District totalling $249,011 (2017 - $321,328). These notes are callable only if required by the Regional District (Note 5). No amounts are currently recorded for this contingent liability.

(c)

Municipal Pension Plan The City 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, 2017, the plan has about 197,000 active members and approximately 95,000 retired members. Active members include approximately 39,000 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 actuaryâ&#x20AC;&#x2122;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 may be adjusted for the amortization of any actuarial funding surplus and will be adjusted for the amortization of any unfunded actuarial liability. The most recent valuation for the Municipal Pension Plan as at December 31, 2015, indicated a $2,224 million funding surplus for basic pension benefits on a going concern basis. As a result of the 2015 basic account actuarial valuation surplus and pursuant to the joint trustee agreement, $1,927 million was transferred to the rate stabilization account and $297 million of the surplus ensured the required contribution rates remained unchanged.

50 ANNUAL REPORT 2018 | CITY OF POWELL RIVER

City of Powell River

Notes to the Consolidated Financial Statements For the Year Ended December 31, 2018

13. Contingencies, Commitments, and Contractual Rights and Obligations (Continued) (c)

Municipal Pension Plan (Continued) In fiscal 2018, the City paid $1,120,923 (2017 - $1,127,700) for employer contributions while employees contributed $950,167 (2017 - $949,118) to the plan. The next valuation will be as at December 31, 2018, with results available later in 2019. 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 allocating the obligation, assets and cost to individual employers participating in the plan.

(d)

Legal Actions As at December 31, 2018, there were various legal claims pending against the City arising from the City's normal course of operations. The City records a liability for the legal claims that are likely to be successful and for which an amount is reasonably determinable. As at December 31, 2018, no specific provisions have been recorded.

(e)

Overdraft As at December 31, 2018, the City had an agreement, as authorized by Bylaw 2540, 2018, with the First Credit Union for overdraft of funds in the amount of $3,000,000. At year end, the overdraft balance was at zero.

(f)

Municipal Police Unit Agreement The City has entered into an Agreement with the Government of the Province of British Columbia for the services of the Royal Canadian Mounted Police (RCMP). The Agreement, dated April 1, 2012 is for a twenty year period, and may be terminated with twenty five months notice. The commitment to the RCMP for the 2019-2020 contract period is $2,469,624 (2017-2018 - $2,363,263) and escalates annually based on an inflationary factor.

(g)

Funding Agreements The City has an agreement with Tourism Powell River to provide annual funding over a five year term covering January 1, 2019 - December 31, 2023 for the operation of the tourist information office and to promote Powell River as a tourism destination. The funding is in the amount of $117,000 in 2019 and $101,000 for the remaining four years. The City has agreements with Powell River Academy of Music and Powell River Arts and Culture Society, for annual contributions for PRISMA and Kathaumixw. The combined values of the agreements are for cash contribution of $49,000 and in kind contributions to a value not exceeding $80,000.

ANNUAL REPORT 2018 | CITY OF POWELL RIVER 51

City of Powell River

Notes to the Consolidated Financial Statements For the Year Ended December 31, 2018

13. Contingencies, Commitments, and Contractual Rights and Obligations (Continued) (h)

Revitalization Tax Exemption Pursuant to Revitalization Tax Exemption Program Bylaw 2492, 2017, the City and Catalyst Paper Corporation entered into an Agreement dated October 19, 2017. The City established a revitalization tax exemption program for Catalyst for its real property classification 4 major industry, folio 0003-000 such that $3,050,000 is the maximum tax payable to the City for 2018, 2019, and 2020. The tax exemption value (tax revenue loss) for 2018 was $1,746,750. The Agreement in Principle continues with the Cityâ&#x20AC;&#x2122;s objective to secure the future economic and social health of the City and the revitalization tax exemption program in relation to Class 4 Major Industrial land and improvements. Catalyst and the City will continue to seek out economic development opportunities and initiatives where community benefits can be optimized through combined municipal and industrial resources. Current arrangements include a 30 year licence of occupation and related agreements to use portions of Catalyst lands and foreshore area for barge facility operations.

(i)

Contractual Rights Contractual rights are rights to economic resources arising from contracts or agreements that will result in revenue and assets in the future. The City's contractual rights arise from contracts entered into for lease agreements and assets under construction to be contributed by developers. The contractual rights for future assets and revenue for the next five years and thereafter is noted, as follows: 2019 Lease revenue Developer contributions

2020

2021

2022

2023

Thereafter

$ 389,160 $ 389,160 $ 389,160 $ 389,160 $ 389,160 $3,970,396 32,602

723,916

$ 421,762 $1,113,076 $ 389,160 $ 389,160 $ 389,160 $3,970,396 (j)

Contractual Commitments As at December 31, 2018, the City has purchase commitments of $786,289 (2017 - $1,591,536) with various vendors and consultants relating to equipment ordered but not delivered and service contracts.

(k)

Landfill Closure The City was advised that the waste management plan of the Powell River Regional District could require the City to pay an amount up to $4.27 million in remediation costs for a long-closed landfill. The landfill was a Regional District function and the Ministry of Environment has deemed that the remediation is the Cityâ&#x20AC;&#x2122;s responsibility. The site closure cost will be paid for by the Regional District. The City has not recorded a liability. The City and the Regional District are in the process of negotiating a memorandum of understanding to jointly build and operate a recycling recovery center on this site.

52 ANNUAL REPORT 2018 | CITY OF POWELL RIVER

City of Powell River

Notes to the Consolidated Financial Statements For the Year Ended December 31, 2018

14. Government Transfers Community Works Fund grant funding is provided by the Government of Canada under the terms of the Gas Tax Agreement. The use of the funding is established by an agreement between the City and the Union of British Columbia Municipalities. Community Works Fund grant funding may be used towards designated public transit, community energy, water, wastewater, solid waste and capacity building projects, as specified in the funding agreement. The funds are recognized as revenue in the period that the transfer from the Government of Canada occurs because these funds are unconditional. The revenue is held in the Community Works Fund Reserve until Council approves use of the funds for qualifying projects. 2018 Balance, start of year

2017

$ 1,379,500 $ 1,332,585

Add 636,832

615,579

Funds unspent on eligible projects

95,369

14,983

Interest earned

37,220

17,416

(764,476)

(601,063)

Government transfers received

Less Funds expended on eligible projects Balance, end of year

$ 1,384,445 $ 1,379,500

15. Developer Contributions 2017

703,890 $

269,916

Sewer infrastructure

390,520

339,195

Water infrastructure

237,720

49,285

General improvements

2018

$ 1,332,130 $

658,396

Subdivision developers are required to provide infrastructure such as roads, water and sewer infrastructure to the specification of the development permit. Upon completion of the development, there is a one year warranty period that the developer is responsible for maintaining the infrastructure. Upon completion, the developer passes ownership of the asset to the City. Valuation is based on land values at time of transition, and costs incurred by the developer approximates fair value associated to the contributed assets.

ANNUAL REPORT 2018 | CITY OF POWELL RIVER 53

City of Powell River

Notes to the Consolidated Financial Statements For the Year Ended December 31, 2018

16. Budget Amounts The budget figures presented in the Statements of Financial Operations and Change in Net Financial Assets represent the annual budget, prepared as the 2018 – 2022 Financial Plan, approved by the City of Powell River and the annual budget approved by the Powell River Public Library. The City’s budget was approved by Bylaw 2501, 2018 on May 10, 2018. A reconciliation of the City’s Financial Plan Bylaw 2501, 2018 to the Statement of Operations is as follows:

Revenue Budget as per Financial Plan Library Library's grant revenue from City eliminated for consolidation Sales of services (internal charges showing as revenue in Financial Plan) City's rent income from Library eliminated for consolidation City's recovery of janitorial, maintenance and IT services from Library eliminated for consolidation Budget as per Statement of Operations

$53,458,419 1,239,149 (771,468) (42,000) (209,160) (58,000) 53,616,940

Expenses Budget as per Financial Plan Library City's grant paid to library eliminated for consolidation Environmental Health (internal charges showing as revenue in Financial Plan) Library's rent paid to City eliminated for consolidation Library's portion of janitorial, maintenance and IT services paid to City eliminated for consolidation Budget as per Statement of Operations

32,360,783 1,132,634 (771,468) (42,000) (209,160) (58,000) $32,412,789

54 ANNUAL REPORT 2018 | CITY OF POWELL RIVER

City of Powell River

Notes to the Consolidated Financial Statements For the Year Ended December 31, 2018

17. Segment Reporting (Schedule 18) The City is a diversified municipal government institution that provides a wide range of services to its citizens. Municipal services have been segmented by function by combining activities that have similar service objectives. Revenues and expenditures reported are directly attributable to the various segments, and may include internal transfers between segments that are recorded at fair value. The major services provided by each segment include: General Government (Schedule 4, 5 and 10) Finance and administration functions of the City generally, including information technology; purchasing and personnel; reception and cashiers; accounting services and tax department; Mayor and Clerk's offices; grants to organizations; and maintenance of civic properties. Transportation Services (Schedule 4, 5 and 11) Maintenance of streets, roads and sidewalks; street and traffic signs, signals and lighting; snow removal and sanding; development and maintenance of the North and South Harbours; barge and tanker wharves; airport terminal, lands and runway; transit fleet and service; municipal fleet and equipment. Environmental and Public Health (Schedule 4, 5 and 12) Solid waste management providing the service of recycling and solid waste collection and disposal. Protective Services (Schedule 4 and 13) Law enforcement and protection to persons and property by the Police Department; Fire and Rescue Services; and Bylaw Enforcement services. Parks, Recreation and Culture (Schedule 4, 7 and 14) Development and maintenance of the Cityâ&#x20AC;&#x2122;s open space, parks and other landscaped areas; maintenance and operation of recreational facilities; development and provision of recreational programs and cultural activities; Willingdon Beach campsite and the Powell River Public Library. Environmental Development (Schedule 5 and 15) Activities related to community and land use planning; development issues generally, including the processing of rezoning applications, development permits and development variances; building permit review and inspections, planning; and Economic Development.

ANNUAL REPORT 2018 | CITY OF POWELL RIVER 55

City of Powell River

Notes to the Consolidated Financial Statements For the Year Ended December 31, 2018

17. Segment Reporting (Continued) Water Utility (Schedule 5, 6 and 16) Development and guardians of the water source at Haslam Lake and Powell Lake; water treatment facilities and water distribution system. Sewer Utility (Schedule 5, 6 and 16) Provision of sanitary sewer and storm drainage by providing and maintaining pipes, manholes, culverts, and sewage lift stations; waste water treatment facility and Wildwood Lagoon. Other Reporting Entities (Schedule 8 and 9) The financial activities of Powell River Community Forest Ltd., Powell River Waterfront Development Corporation and Powell River Power Development Corporation. “Financial Activities – by Segment" presents revenues and expenditures for each of the segments noted above. Only direct revenues and expenditures are reflected within individual segments. Other revenues (notably property taxation) not directly arising within specific segments have been shown separately as "Unallocated", in order that totals match the amounts of the Consolidated Statement of Operations. 18. Subsequent Event Subsequent to December 31, 2018, it was confirmed that the First Credit Union (FCU) would be unable to extend the loan to Powell River Waterfront Development Corporation (PRWDC) without the guarantee of the City and that the City would be unable to provide such a guarantee. Without the financial support of the FCU, PRWDC would have to find alternative financing or sell sufficient land, prior to the loan maturity date of August 31, 2019, to avoid having to liquidate land inventory to settle the debt. It is probable that the City will purchase the inventory from PRWDC, which will provide sufficient capital for PRWDC to meet its long-term debt obligations. At December 31, 2018, the book value of inventory held by PRWDC is $2,221,509, which exceeds the loan obligation of $1,339,723. 19. Comparative Figures Certain comparative amounts have been restated to conform to the current year’s presentation.

56 ANNUAL REPORT 2018 | CITY OF POWELL RIVER

City of Powell River Long-Term Debt

Schedule 1

For the Year Ended December 31, 2018

Purpose

Maturity Date

Interest Rate

Principal Principal Outstanding Outstanding 2017 2018

Loan # 0002-0

Wide area network

Aug 2018

1.44%

Loan # 0001-0

Photocopiers

July 2019

1.44%

Issuer & Issue # MFA Equipment Loan

- $

24,381

2,544

6,774

2,544

31,155

MFA Debenture Debt General Fund MFA Short Term

Library

Dec 2020

2.27%

656,000

MFA Short Term

Garbage trucks

Jul 2021

2.27%

246,750

329,000

MFA Short Term

Lot A DL450

Jul 2021

2.27%

480,000

640,000 461,135

MFA #93

Roads

Apr 2025

5.10%

408,444

MFA #92

Complex upgrade

Apr 2030

1.55%

300,379

319,600

MFA #106

Millennium Park

Oct 2034

4.13%

1,066,617

1,113,610

MFA #117

North Harbour

Oct 2041

3.25%

5,155,036

5,290,400

2.60%

3,362,028

3,432,200

11,675,254

11,585,945

MFA#137

Library

Apr 2046

Water Fund MFA #69

Water supply system

Sep 2018

4.65%

84,063

MFA #70

Water supply system

Jun 2019

2.10%

90,011

176,128

90,011

260,191

84,063

1,339,723

1,293,224

Sewer Fund MFA #69

Sewage treatment plant Sep 2018

4.65%

Powell River Waterfront Development Corporation First Credit Union Short Term Total Long-Term Debt

Land

2.70%

$ 13,107,532 $ 13,254,578

ANNUAL REPORT 2018 | CITY OF POWELL RIVER 57

City of Powell River

Tangible Capital Assets

Schedule 2

For the Year Ended December 31, 2018

Cost Balance, Beginning of Year Land

Additions

Balance, End of Year

Disposals

(61,601) $

13,846,618

7,603,998

170,858

(1,355)

7,773,501

Buildings & building services

42,410,686

419,477

(136,621)

42,693,542

Furniture, equipment, technology and motor vehicle

10,457,473

479,189

(293,381)

10,643,281

Roads, sidewalks and curbs

38,072,042

1,641,322

(126,186)

39,587,178

Water supply infrastructure

26,225,853

842,138

(31,294)

27,036,697

Sewer infrastructure

16,827,786

399,956

(6,414)

17,221,328

Land improvements

Drainage infrastructure Marine and airport infrastructure Assets under construction Powell River Public Library Cost $

13,829,863 $

78,356 $

298,832 -

(304,513)

25,796,401

568,303

1,191,796

(93,733)

1,666,366

1,915,449 193,900,761 $

110,327 5,632,251 $

10,187,226

9,888,394 26,100,914

(1,055,098) $

2,025,776 198,477,914

58 ANNUAL REPORT 2018 | CITY OF POWELL RIVER

City of Powell River

Tangible Capital Assets

Schedule 2

For the Year Ended December 31, 2018

Accumulated Amortization Balance, Beginning of Year $

Annual Amortization - $

Balance, End of Net Book Value Net Book Value 2017 Year 2018

Disposals - $

- $

13,846,618 $

13,829,863

3,296,337

237,480

(1,355)

3,532,462

4,241,039

4,307,662

25,074,831

674,876

(136,621)

25,613,086

17,080,456

17,335,855

5,144,194

690,907

(290,345)

5,544,756

5,098,525

5,313,279

23,878,374

375,571

(122,927)

24,131,018

15,456,160

14,193,668

7,974,039

341,343

(12,234)

8,303,148

18,733,549

18,251,813

10,489,959

237,666

(6,414)

10,721,211

6,500,117

6,337,827

4,327,306

102,613

(260,865)

4,169,054

6,018,172

5,561,087

9,186,946

412,072

9,599,018

16,197,383

16,913,968

1,666,366

568,304

1,169,900 90,541,886 $

174,456 3,246,984 $

(830,761) $

1,344,356 92,958,109 $

681,420 105,519,805 $

745,549 103,358,875

ANNUAL REPORT 2018 | CITY OF POWELL RIVER 59

City of Powell River Tax Levies

Schedule 3

For the Year Ended December 31, 2018 Budget 2018 Municipal Purposes Real property and special assessments Grants in lieu of taxes Total Taxes for Municipal Purposes

Actual 2018

Actual 2017

$ 17,000,677 $ 17,000,850 $ 16,236,411 589,502 582,685 625,246 17,590,179

17,583,535

16,861,657

Collections for Other Authorities School District - Provincial Government Regional District Regional Hospital District British Columbia Assessment Authority Municipal Finance Authority

4,752,542 834,028 467,504 152,501 388

4,878,111 1,400,184 346,629 147,577 506

4,692,505 1,308,023 323,015 139,911 440

Total Collections for Other Authorities

6,206,963

6,773,007

6,463,894

Total Tax Levies

$ 23,797,142 $ 24,356,542 $ 23,325,551

60 ANNUAL REPORT 2018 | CITY OF POWELL RIVER

City of Powell River Sale of Services

Schedule 4

For the Year Ended December 31, 2018 Budget 2018 Transportation Recreation Sanitation and waste collection Policing fees Bylaw fees Sewer services Water services Financial services Firefighting fees Total Sale of Services

Actual 2018

Actual 2017

$ 2,539,670 $ 2,821,905 $ 2,531,228 1,750,102 1,552,108 1,726,039 625,771 813,515 619,941 208,314 241,014 212,202 110,300 93,646 107,378 25,000 32,500 28,000 15,000 30,125 14,375 12,500 22,405 26,692 8,750 11,646 10,926 $ 5,295,407 $ 5,618,864 $ 5,276,781

ANNUAL REPORT 2018 | CITY OF POWELL RIVER 61

City of Powell River Other Revenue

Schedule 5

For the Year Ended December 31, 2018 Budget 2018 Property rentals Permits and application fees Penalties and interest on taxes Other Miscellaneous Water other revenue Sewer other revenue Total Other Revenue

479,902 $ 591,786 130,000 30,500 13,600 -

Actual 2018 656,684 $ 635,280 147,957 79,757 30,125 7,047 6,385

Actual 2017 660,055 441,282 138,657 65,588 11,948 2,056 1,195

$ 1,245,788 $ 1,563,235 $ 1,320,781

62 ANNUAL REPORT 2018 | CITY OF POWELL RIVER

City of Powell River Utility User Fees

Schedule 6

For the Year Ended December 31, 2018 Budget 2018 Sewer fund revenue user fees Water fund revenue user fees Total Utility User Fees

Actual 2018

Actual 2017

$ 2,928,132 $ 2,931,097 $ 2,902,424 2,407,463 2,387,827 2,325,260 $ 5,335,595 $ 5,318,924 $ 5,227,684

ANNUAL REPORT 2018 | CITY OF POWELL RIVER 63

City of Powell River

Powell River Public Library

Schedule 7

For the Year Ended December 31, 2018 Budget 2018 Revenue Powell River Regional District grant Other income Other grants Province of British Columbia grant Fines Interest income

Expenses Wages & benefits Building costs Office supplies Periodicals Programs Professional fees Materials & equipment Advertising and promotion Education Planning Book processing Licenses and dues Bank charges Expenses Before Amortization Amortization Total Expenses Total Powell River Public Library

Actual 2018

Actual 2017

313,428 $ 7,602 60,683 56,611 5,464 1,634

340,619 $ 147,705 59,366 56,611 8,306 2,554

445,422

615,161

1,078,864

732,263 208,823 27,248 30,523 12,500 6,500 8,682 7,695 8,000 4,500 1,103 900

729,992 29,038 21,114 16,225 12,818 9,316 8,620 7,291 6,338 3,468 2,104 1,520 526

716,604 187,064 29,308 31,651 14,103 6,500 6,382 9,923 4,917 101,119 4,047 1,104 1,373

1,048,737

848,370

1,114,095

153,694

174,456

174,932

1,202,431

1,022,826

1,289,027

(757,009) $

(407,665) $

313,994 40,961 658,427 56,611 7,127 1,744

(210,163)

64 ANNUAL REPORT 2018 | CITY OF POWELL RIVER

City of Powell River

Powell River Power Development Corporation

Schedule 8

For the Year Ended December 31, 2018 Budget 2018 Revenue Interest Expenses Professional services Total Powell River Power Development Corporation

Actual 2017

Actual 2018 - $

- $

9,954

- $

9,954 $

427 427

ANNUAL REPORT 2018 | CITY OF POWELL RIVER 65

City of Powell River

Powell River Waterfront Development Corporation

Schedule 9

For the Year Ended December 31, 2018 Budget 2018 Revenue Gain on sale of partnership Interest income Land sale

Actual 2018 - $ 1,274,945 $ 2,469 -

Actual 2017 221 350,000

1,277,414

350,221

Expenses Program delivery Administration Land

45,716 3,195 -

48,607 2,500 350,000

Total Expenses

48,911

401,107

Total Powell River Waterfront Development Corporation

- $ 1,228,503 $

(50,886)

66 ANNUAL REPORT 2018 | CITY OF POWELL RIVER

City of Powell River General Government

Schedule 10

For the Year Ended December 31, 2018 Budget 2018 Financial services Administrative services Grants and donations Building maintenance Information services Legislative services Legal and audit fees Insurance and damages Election Amortization (Gain) loss on disposal of tangible capital assets Departmental chargebacks Total General Government

$ 1,153,064 $ 1,366,663 975,000 516,070 464,030 339,827 202,000 120,593 69,300 2,437,218 (688,507)

Actual 2018 1,485,267 $ 1,365,128 1,166,840 602,368 400,460 284,237 276,442 222,633 58,617 2,210,230 31,993 (602,719)

Actual 2017 1,041,384 1,237,915 1,628,652 584,762 427,881 276,590 177,065 97,536 199 2,274,349 (9,004) (459,840)

$ 6,955,258 $ 7,501,496 $ 7,277,489

ANNUAL REPORT 2018 | CITY OF POWELL RIVER 67

City of Powell River

Transportation Services

Schedule 11

For the Year Ended December 31, 2018 Budget 2018 Common Services Public works administration Stores and timekeeper Roads and Streets Maintenance Streets and sidewalks Engineering Operational Services Transit Airport North boat harbour South boat harbour Westview boat harbour Barge and tanker wharves

Total Transportation Services

Actual 2018

Actual 2017

253,284 $ 210,107

262,636 $ 208,563

264,959 65,397

463,391

471,199

330,356

1,203,770 317,993

1,406,526 304,590

1,464,132 281,988

1,521,763

1,711,116

1,746,120

1,954,393 296,126 280,021 173,841 173,855 25,269

2,043,580 323,336 273,176 174,414 173,832 44,601

1,996,588 291,420 277,449 184,414 159,371 6,385

2,903,505

3,032,939

2,915,627

$ 4,888,659 $ 5,215,254 $ 4,992,103

68 ANNUAL REPORT 2018 | CITY OF POWELL RIVER

City of Powell River

Environmental and Public Health

Schedule 12

For the Year Ended December 31, 2018 Budget 2018 Residential collection Sanitation and waste collection Commercial collection Departmental chargebacks Total Environmental and Public Health

Actual 2018

Actual 2017

510,778 $ 50,003 10,721 (42,000)

472,898 $ 42,212 23,203 (41,544)

579,858 45,989 9,624 (41,665)

529,502 $

496,769 $

593,806

ANNUAL REPORT 2018 | CITY OF POWELL RIVER 69

City of Powell River Protective Services

Schedule 13

For the Year Ended December 31, 2018 Budget 2018 Fire Police Bylaw enforcement and animal control Total Protective Services

Actual 2018

Actual 2017

$ 3,180,275 $ 2,816,751 $ 2,849,695 3,334,876 2,648,475 2,820,798 269,384 221,462 176,511 $ 6,784,535 $ 5,686,688 $ 5,847,004

70 ANNUAL REPORT 2018 | CITY OF POWELL RIVER

City of Powell River

Recreation and Cultural Services

Schedule 14

For the Year Ended December 31, 2018 Budget 2018 Revenue Swimming pool and fitness Ice arenas Willingdon Beach Campsite Theatre and meeting rooms Recreation programs Parks and playgrounds Concessions

Expenses Maintenance Swimming pool and fitness Parks and playgrounds Ice arenas Culture Recreation programs Willingdon Beach Campsite Theatre and meeting rooms Selling and administration

Net loss

557,259 $ 451,802 323,300 141,890 71,786 45,500 21,270

Actual 2018 547,708 $ 463,761 366,879 98,123 84,149 38,234 17,765

Actual 2017 590,286 381,605 342,488 104,276 117,345 43,250 16,103

1,612,807

1,616,619

1,595,353

1,342,715 1,175,570 1,039,786 469,987 387,772 291,373 218,670 232,771 91,535

1,354,549 1,139,696 929,316 458,537 388,153 297,568 218,009 195,533 87,166

1,440,429 1,074,714 982,224 445,236 432,742 299,587 243,753 197,484 76,083

5,250,179

5,068,527

5,192,252

$ (3,637,372) $ (3,451,908) $ (3,596,899)

ANNUAL REPORT 2018 | CITY OF POWELL RIVER 71

City of Powell River

Environmental Development

Schedule 15

For the Year Ended December 31, 2018 Budget 2018 Planning Economic development Total Environmental Development

Actual 2017

715,817 $ 421,063

582,159 413,744

$ 1,134,930 $ 1,136,880 $

995,903

704,839 $ 430,091

Actual 2018

72 ANNUAL REPORT 2018 | CITY OF POWELL RIVER

City of Powell River

Water and Sewer Utilities

Schedule 16

For the Year Ended December 31, 2018 Budget 2018 Water Utility Watermains and services Water administration Loss on disposal of asset Amortization expense Departmental chargeback

$ 1,058,882 $ 510,095 408,639 -

Actual 2018 845,370 $ 393,626 19,061 419,192 (59,668)

Actual 2017 819,364 427,738 633 385,048 (60,102)

1,977,616

1,617,581

1,572,681

Sewer Utility Sewage treatment and disposal Sewage collection Loss (gain) on disposal of asset Amortization expense Departmental chargeback

1,424,634 996,714 1,011,143 -

1,211,220 997,091 443,106 -

1,312,946 854,231 7,708 698,979 -

Expenses

3,432,491

2,651,417

2,873,864

Total Sewer and Water Utilities

$ 5,410,107 $ 4,268,998 $ 4,446,545

ANNUAL REPORT 2018 | CITY OF POWELL RIVER 73

City of Powell River Reserves

Schedule 17

For the Year Ended December 31, 2018 Balance 2017 General Revenue Fund Reserve Accounts Affordable Housing Airport Arts and culture committee Barge & tanker wharf operations Climate action Cranberry Lake sanctuary Elections Field user fees Firehall reserve Future expenditures Health & Safety Heritage preservation project Insurance claims Legal North Harbour Re-alignment Ministry of Transportation Smoke alarms Sport and recreation committee Technology Theatre equipment Transfer site clean up Willingdon Beach Campsite Water Fund Reserve Accounts Future expenditures Water Capital Sewer Fund Reserve Accounts Future expenditures Sewer Capital Total Reserve Accounts

Interest Allocated

Transfers In

Transfers Out

Balance 2018

321 $ 1,444 803 9,263 3,263 944 336 2,662 64 1,152 144 5,335 17 24,139 3,661 24 1,157 1,095 606 519 3,971

23,500 $ 5,961 52,704 7,500 2,156 22,627 16,842 161,388 50,000 25 69,904

- $ (4,859) (30,317) (9,624) (28,617) (158,583) (15,243) (61,624) -

2,258,857

60,920

412,607

(308,867)

2,423,517

295,252 1,780,500

54,760

684,089

(295,252) (233,360)

2,285,989

2,075,752

54,760

684,089

(528,612)

2,285,989

108,162 6,041,202

166,681

515,438

(108,162) (386,668)

6,336,653

6,149,364 10,483,973

166,681 282,361

515,438 1,612,134

- $ 55,310 29,437 351,472 97,974 34,567 22,869 96,445 2,353 158,583 38,500 5,289 186,991 609 803,512 134,104 872 42,377 45,913 22,174 18,997 110,509

23,821 51,895 30,240 336,379 144,317 35,511 2,088 101,263 2,417 47,036 5,433 209,168 626 989,039 137,765 896 43,534 35,384 22,805 19,516 184,384

(494,830) 6,336,653 (1,332,309) 11,046,159

74 ANNUAL REPORT 2018 | CITY OF POWELL RIVER

City of Powell River Reserves

Schedule 17

For the Year Ended December 31, 2018 Balance 2017

Reserve Funds City Buildings & Infrastructure 355,433 Community Works Fund Reserve 1,379,500 Vehicle & Equipment 2,994,738 General Capital Projects 193,955 Land sale 67,129 Parkland Acquisition 145,060 Powell River Community Forest 3,213,685 Road improvement 91,569 Total Reserve Funds 8,441,069 Total Reserve Accounts and Reserve Funds $18,925,042 $

Interest Allocated

9,263 37,220 85,899 4,522 1,832 4,294 101,575 2,500

Transfers In

148,877 732,201 654,541 24,440 2,518,576 -

Transfers Out

Balance 2018

(181,157) (764,476) (351,060) (56,568) (1,504,616) -

332,416 1,384,445 3,384,118 141,909 68,961 173,794 4,329,220 94,069

247,105 4,078,635 (2,857,877) 9,908,932 529,466 $ 5,690,769 $ (4,190,186) $20,955,091

ANNUAL REPORT 2018 | CITY OF POWELL RIVER 75

City of Powell River

Financial Activities - by Segment

For the Year Ended December 31, 2018 Revenue Property taxes and grants in lieu Sale of services Other revenue

Schedule 18

General Government Transportation Services Services

$ 17,583,535 $

Environmental and Public Health Services

- $

Protective Services

22,405

2,821,905

813,515

346,306

546,513

119,143

1,038,103

303,835

24,156

612,352

Powell River Public Library

Powell River Power Development Corporation

Powell River Waterfront Development Corporation

Investment Earnings, Powell River Community Forest

703,890

20,506,798

3,244,883

813,515

370,462

2,929,692

2,801,784

224,203

3,273,715

419,708

1,184,226

49,184

192,996

Municipal fleet

21,234

157,546

77,837

124,679

Contracted services

81,506

139,956

3,301

1,908,250

Utilities

92,565

423,251

79,959

512,712

132,266

16,788

Utility user fees Government transfers Interest and investment income

Developer contributions

Expenses Wages and benefits Materials and supplies

Professional services & insurance

1,166,840

637,735

1,084,207

183,788

90,301

31,993

2,210,230

Powell River Public Library

Powell River Waterfront Development Corporation

Grants Miscellaneous (Gain) loss on disposal of tangible capital assets Amortization

Departmental chargebacks Total Operating Expenses Fiscal services & debt charges Total Operating & Debt Expenses

(602,719)

(707,982)

(41,544)

7,501,496 40,274

5,215,254 231,024

496,769 7,385

5,686,688 -

7,541,770

5,446,278

504,154

5,686,688

$ 12,965,028 $

(2,201,395) $

309,361 $ (5,316,226)

76 ANNUAL REPORT 2018 | CITY OF POWELL RIVER

City of Powell River

Financial Activities - by Segment Recreation, Parks, and Cultural Services

Environmental Development Water Utility

- $

Schedule 18

Other Reporting Entities

Sewer Utility

2018

2017

$ 17,583,535

$ 16,861,657

1,552,108

30,125

32,500

5,618,864

5,276,781

122,867

761,280

7,047

6,385

1,563,235

1,320,781

2,387,827

2,931,097

5,318,924

5,227,684

70,904

77,524

437,958

915,350

2,867,830

3,819,743

110,060

66,655

789,067

522,075

615,161

1,078,864

427

1,277,414

350,221

3,398,928

2,193,638

237,720

390,520

1,332,130

658,396

2,361,040

838,804

3,210,737

4,342,507

4,676,342

40,365,088

37,310,267

3,362,436

721,247

875,570

1,336,324

15,524,971

14,810,815

679,741

56,629

187,118

411,287

3,180,889

3,299,392

127,552

4,235

71,271

120,905

705,259

635,028

266,687

157,694

38,820

22,734

2,618,948

2,867,991

405,992

798

28,380

268,051

1,298,996

1,443,076

57,456

25,998

8,694

21,514

9,954

785,382

579,528

251,201

110,115

1,528,156

2,051,780

621,857

60,164

29,143

27,496

2,734,691

2,178,224

19,061

51,054

174,456

419,192

443,106

3,246,984

3,533,308

848,370

1,114,095

48,911

401,107

(704,395)

(59,668)

(663)

(2,116,308)

(1,878,445)

6,091,353 189,769

1,136,880 14,366

1,617,581 23,272

2,651,417 37,417

58,865 -

30,456,303 543,507

31,035,236 611,410

6,281,122

1,151,246

1,640,853

2,688,834

58,865

30,999,810

31,646,646

(312,442) $ 1,569,884

$ 1,653,673

$ 4,617,477

$ (3,920,082) $

9,365,278

5,663,621

ANNUAL REPORT 2018 | CITY OF POWELL RIVER 77