ABOUT THE FINANCIAL STATEMENTS

The following pages present a report on the financial health, financial position and accountability of the District of Squamish as it manages the growing community.

Preparation of the Consolidated Financial Statements is the responsibility of Council and District of Squamish management. These statements are prepared by District staff in accordance with the Canadian public sector accounting standards and are externally and independently audited by BDO Canada LLP.

As expressed in the audit report, it is BDO Canada LLP’s opinion that the District’s financial statements present fairly in all material respects, the financial position of the District as at December 31, 2022 and the results of its operations, change in net financial assets, and cash flows for the year ended in accordance with Canadian public sector accounting standards.

The information presented in the financial statements reflect the results of 2022’s work on Council’s 2019-2022 strategic plan.

Highlights:

• The District ended the year with a $18M increase in accumulated surplus for a total of $378M in 2022.

• This represents the net value of the District’s overall assets including the investment in capital assets of $310M and $68M in reserves set aside for infrastructure improvements, strategic initiatives, and working capital to meet the District’s cash flow needs.

• The District has made significant effort to build up reserves over the past decade in order to minimize risk and financial uncertainty.

• Although the District’s reserves are healthy, further reserve contributions will be needed to meet the District’s asset management, integrated stormwater management and facility replacement requirement.

• When reserves or external funding are insufficient to fund capital investment, the District relies on borrowing to fund priority projects.

• At the end of 2022 the District held $37.8M in debenture debt, $2.5M less than at the end of 2021.

• The District’s debt servicing limit at the end of 2022 was 13.9%, significantly lower than the legislated limit of 25% and the District’s financial policy limit of 20%.

• The District’s revenue is approximately $6M higher than 2021 revenues which comprises a combination of increased tax, building permit and utility revenues in 2022, and an increase in investment revenue as a result of increased interest rates.

• The District’s 2022 operating expenditures were approximately $63M and include several special operating project initiatives budgeted at $2.3M.

• In 2022, the District acquired a net $29M in tangible capital assets of which were funded by utility fees, grants, reserves, borrowing and developer-paid Developer Cost Charges.

Further information on the District’s Long Term Plan - Guiding Principles and Financial Policy can be found on squamish.ca.