2016 Annual Report. Includes financial statements for the year ended December 31, District of Lillooet, British Columbia, Canada

Transcription

1 Includes financial statements for the year ended December 31, 2016, British Columbia, Canada

2 2016 ANNUAL REPORT British Columbia, Canada For the Fiscal year ended December 31, 2016 Produced by Corporate Services and Finance in cooperation with all municipal departments and agencies.

3 TABLE OF CONTENTS OUR PROGRESS, OUR COMMUNITY, OUR PEOPLE Message from the Mayor Mayor and Council... 3 Strategic Plan... 4 Strategic Goals Strategic Goals Community Profile Organizational Chart Departmental Overviews Corporate Services Economic Development Recreation Public Works & Utilities Fire FINANCIAL OVERVIEW ( Consolidated Financial Statements) Management s Responsibility for Financial Reporting Auditors Report Consolidated Statement of Financial Position Consolidated Statement of Operations Consolidated Statement of Change in Net Financial Assets Consolidated Statement of Cash Flows FINANCIAL OVERVIEW - CONTINUED Notes to Consolidated Financial Statements STATISTICAL INFORMATION Financial Revenues by Source Expenses by Function Expenses by Object Annual Surplus Legislated Debt Limit Long Term Debt Outstanding Per Capita Long Term Debt Accumulated Surplus Tangible Capital Asset Acquisitions Assessment (Revised Roll) Taxes Collected for Various Authorities Demographic Population Estimate Development Permits Issued Construction Value of Permits Issued Permissive Tax Exemptions Glossary of Terms... 62

4 Page 1 MESSAGE FROM LILLOOET MAYOR MARGARET LAMPMAN 2016 was a remarkable year for the. It is with pride in our staff, Council and citizens, as well as with optimism for 2017 and beyond, that I share the 2016 Annual Report. In 2016 Council fulfilled their commitment to have a Senior Management team in place. With the hiring of a Chief Administrative Officer/Chief Financial Officer and a Director of Public Works the is on sound footing to advance the operations of the District and to also move forward and successfully complete the goals and objectives identified by Council. It was with great satisfaction to see housing sales and building permits up considerably for the year. The ongoing transformation of Main Street from the Bridge of the 23 Camels to the Old Bridge speaks to everyone that we care about our Community. Council has worked hard over the past year to build on openness, transparency and accountability and many of our Goals and Objectives have been completed. Relationship building with the Community and our neighbours remains a high priority for Council and staff and it is with a continued belief in our community and neighbors that together we can have economic diversity and a resilient community. As the successes experienced by the District filter out into the Community, the Community is finding its place and is making their mark on being forward-thinking, progressive and energetic.

5 Page 2 There is always an expectation that government deliver more services and deliver services faster and we can certainly strive to improve on this by building capacity and expertise. It is remarkable what our staff have accomplished with our current resources and the leveraging of resources achieved by working with our partners within the community. The community partners from service organizations to social, safety and health services are the champions that add the rich diversity and value to our social, economic and environmental well-being. Without them we simply would not be achieving what we are today. Sincerely, Margaret Lampman, Mayor

6 Page 3 MAYOR AND COUNCIL From Left to Right: Councillor Barbara Wiebe, Councillor John Courchesne, Mayor Marg Lampman, Councillor Kevin Aitken and Councillor Laurie Hopfl Lillooet s Mayor and Councillors were elected for a four-year term in the November municipal election of The next municipal election will take place in the fall of Council meets regularly (two meetings per month) to make decisions about District policies and direction that will be carried out by Lillooet District staff in the day-to-day business of the community. All decisions are expressed either by a Council Resolution or a Bylaw. We encourage you to attend and share your view and to learn more about the decisions that impact you as residents. Each Council member is appointed or sits on certain boards and external committees, select and standing committees including the following: Squamish-Lillooet Regional District Board Northern Economic Development Initiative Trust Thompson-Nicola Regional District Hospital Board Northern Economic Development Initiative Committee Recreation Services Advisory Committee Forestry Advisory Committee Lillooet Community Foundation Gold Country Communities Society Miyazaki House Society Lillooet Area Library Association

7 Page 4 STRATEGIC PLAN The Council Strategic Plan guides the work of the municipality. It is the tool by which our resources and energies will be focused on issues that are critical to moving Lillooet towards our shared vision for the community. Mission Statement Lillooet provides excellent public service to enhance the quality of life for our community. Vision Lillooet will be a complete community which values sustainability, diversity and inclusiveness Council Priorities 1. Improve Corporate Governance 2. Build Community 3. Develop Financial Sustainability 4. Advance Environmental Responsibility

8 Page 5 STRATEGIC GOALS Improve Corporate Governance o Ensure the s governance practices are transparent and accountable to Council and community. Project/ Initiative Have staff publicly report, minimum every four months, on: Budget vs expenditures to date; Progress on achieving Council s objectives; and Key departmental activities and accomplishments. Consider report on the benefits, costs and expected outcomes of a forensic audit. The report to examine existing audit practices, financial system improvements to date and steps taken to reduce risk of fraud. Proceed to a Request for Proposals for annual Audit services. Ensure a transparent Budget/Financial Plan process with ongoing opportunities for public input. Meet statutory reporting deadlines. Status Complete for 2016 Complete Complete Complete for 2016 Complete for 2016

9 Page 6 Build Community o Improve relationships with First Nations for the betterment of the regional community; o Improve Lillooet s connectivity to outside communities to access services; and o Recognize those that contribute to a better Lillooet and realize that Lillooet will only be stronger through improved communication. Project/ Initiative Collaborate on strategies for broader REC Centre funding. Collaborate on a joint Emergency Plan and work together on a mock disaster. Promote opportunities for First Nations Volunteers on the Lillooet Fire Department. Invite adjacent community fire departments to participate in joint training opportunities. Examine potential for jointly funded employment opportunities for First Nations. Invite discussions on a centrally located Cultural Centre on District of Lillooet lands. Examine ride-sharing opportunities with BC Transit s advice. Improve Wi-Fi service in REC Centre, perhaps through Shaw hotspot program. Revisit the Freeman of the City program and determine if there are worthy designates. Host a volunteer appreciation barbeque for all of Lillooet recognizing that volunteers exist at many levels throughout the community. Improve communication between Council and community by: Providing the Deputy Corporate Officer with additional information for the monthly BRLN newspaper updates; Examine staffing ability to improve social media presence; and Council giving year-end interviews to the BRLN. Status In progress In progress Complete for 2016 Complete for 2016 Ongoing Ongoing Ongoing Ongoing Complete for 2016 Deferred Ongoing

10 Page 7 Develop Financial Stability o Ensure the District s finances are in order both from an immediate and a long term perspective; o Focus on core services; o Develop a long-term resolution to the REC Centre issue; and o Work to diversify tax base and promote economic growth. Project/ Initiative Adopt an Exempt Staff Employment policy detailing acceptable terms of employment. Ensure expenditures are diligently monitored by: Managers having full access to all financial information; and Ensuring all expenditures comply with updated purchasing policy. Adopt updated purchasing policy. Reconsider and update the Grant-in-aid policy. Proceed to Request for Proposals for day-to-day engineering services. Develop accurate job costing rates including vehicle charge-out rates. Develop infrastructure grant application strategy and prioritization. Develop equitable and self-funding water rate structure by: Amalgamate parcel/frontage tax systems to a single local service area tax; Complete water metering; Experience water system expenditures for full year; and Update local service area tax and user fees. Budget sufficient resources to operate and maintain water, sewer and transportation services. Budget sufficient resources to maintain downtown aesthetics including tree and plaque maintenance and upgrading garbage bins. Review snow removal policy. Develop/review policy on responsibilities of Lillooet vs property owners for boulevard maintenance. Improve washrooms and Sani-dump facilities at campground utilizing $5,000 from TRU Engineering. Examine management options for campground. Status Complete Ongoing Complete Complete Complete Ongoing Ongoing Ongoing Ongoing Ongoing Complete Ongoing Complete Complete

11 Page 8 Consider budgeting for improvements of entrance to Lillooet up Station Hill. Ensure any long-term sustainability strategy for the REC Centre examines: Services offered; Strategies for increasing usage; Operating costs for updating building; Who pays; and How much is affordable. Seek resource company direct, on-going support of the facility or operators. Continue with two committees reviewing the affordability of the REC Centre. Establish Forestry Committee to champion the forest industry, recognizing its importance to Lillooet s economy. Improve District s Development Approval procedures and practices. Ongoing Ongoing Ongoing Complete for 2016 Complete Ongoing

12 Page 9 Advance Environmental Responsibility o Ensure the District adheres to its environmental responsibilities and continually strives to be a green community. Project/ Initiative Work with SLRD to improve recycling education. Promote bicycle rental business. Pursue improvements to Hwy 99 between Lillooet and Seton Lake to establish a safe cycle lane. Status Ongoing Deferred Deferred

13 2017 STRATEGIC GOALS Page 10 Improve Corporate Governance o Ensure the s governance practices are transparent and accountable to Council and community. Project/ Initiative Create a policy or bylaw amendment on Rising and Reporting in Public Meetings for decisions and background considered at Closed Meetings whenever possible. Have staff publicly report, minimum every four months, on: Budget vs expenditures to date; Progress on achieving Council s objectives; and Key departmental activities and accomplishments. Build Community o Improve relationships with First Nations for the betterment of the regional community; o Improve Lillooet s connectivity to outside communities to access services; o Recognize those that contribute to a better Lillooet and realize that Lillooet will only be stronger through improved communication; and o Enhance housing opportunities. Project/ Initiative Invite First Nations leadership to a joint, strictly social event. Collaborate on a joint Emergency Plan and work together on a mock disaster. Improve broad-band connectivity for greater Lillooet. Host a volunteer appreciation barbeque for all of Lillooet recognizing that volunteers exist at many levels throughout the community. Appreciate committed District staff by: Hosting a staff appreciation luncheon; Establishing a safety appreciation program. Conduct a Seniors Housing Survey.

14 Page 11 Develop Financial Stability o Ensure the District s finances are in order both from an immediate and a long term perspective; o Focus on core services; o Develop a long-term resolution to the REC Centre issue; and o Work to diversify tax base and promote economic growth. Project/ Initiative Develop an Asset Management Plan. Develop accurate job costing rates including vehicle charge-out rates. Develop infrastructure grant application strategy and prioritization. Develop equitable and self-funding water rate structure by: Complete water metering; Experience water system expenditures for full year; and Update local service area tax and user fees. Undertake assessment of City Hall and determine its future. Determine tenure details of Public Works Yard. Ensure any long-term sustainability strategy for the REC Centre examines: Services offered; Strategies for increasing usage; Operating costs for updating building; Who pays; and How much is affordable. Develop sponsorship strategy for REC Centre. Continue with committee reviewing the affordability of the REC Centre. Undertake opportunity identification study for hydro-electric generation projects. Using GIS/Asset Management provide update on District s land inventory. Examine feasibility of an accommodation tax to raise revenues for tourist promotions. Improve District s Development Approval procedures and practices. Promote Lillooet as a place to relocate a business or industry. Target Green Business; businesses that do not rely on walk-up traffic. Update development/redevelopment parking requirement on Main Street to promote development/redevelopment. Review and update Permissive Tax Exemption Policy.

15 Page 12 Advance Environmental Responsibility o Ensure the District adheres to its environmental responsibilities and continually strives to be a green community. Project/ Initiative Examine cost effective opportunities to install solar power hardware in District facilities, particularly when updating facilities. Examine sky-friendly lighting replacement program. Examine feasibility of establishing a downtown recycling centre. Install bicycle racks in key downtown locations, utilizing unique designs adding to downtown beautification. Identify safe cycle lane route for Highway 99; Lillooet to Seton Lake. Pursue improvements to Highway 99 between Lillooet and Seton Lake to establish a safe cycle lane. Promote recycling and expand awareness of recycling in Lillooet.

16 Page 13 COMMUNITY PROFILE Lillooet is located in the northern Fraser Canyon within the Squamish-Lillooet Regional District approximately three hours or 251 kilometers north of Vancouver via scenic Highway 99, also known as the Duffey Lake Road. The population is reported at 2,322 in the 2016 census, with the highest proportion of residents aged between 45 and 70. Situated in a beautiful valley surrounded by forests, valleys, mountains, lakes and rivers; Lillooet is a paradise for any outdoor enthusiasts. Along with superb fishing, a golf course, winery, hop farm and dozens of hiking and mountain-bike trails, Lillooet has a rich culture and history which includes the Northern St at imc tradition and the Gold Rush era, as well as cattle ranching and, most recently, viticulture. Lillooet is known for its annual events including the Apricot Festival, Fraser River Salmon Run and Harvest Festival. Other regular events draw participants from across Lillooet and the region, and include various Fort Berens Winery events, weekly farmers market and concerts in the Miyazaki House gardens during the summer season.

17 Page 14 ORGANIZATIONAL CHART Citizens, Businesses & Tax Payers Mayor & Council Committees of Council Chief Administrative Officer Michael Roy Corporate Services Michael Roy Recreation David Speed (Interim) Fire Chief Oike Economic Development Margaret Hohner Public Works Don Darling (Interim)/ Rod Pleasance

18 CORPORATE SERVICES The Corporate services Department functions include Corporate Administration, Human Resources, Information Technology Services and Finance. CORPORATE ADMINISTRATION Corporate Administration is the community s link to District Council. The department supports and manages the Council meeting process, develops and maintains District bylaws, maintains and protects corporate records, considers and facilitates access to corporate information and deals with related privacy issues. The department also manages civic elections, Board of Variance and Council Committees. Responsibilities o Ensures the District remains committed to achieving social and financial sustainability while aligning the organization to Council s Strategic Plan initiatives. o Provides administration support for various departments and Council members, including preparation and safe-keeping of agendas, minutes and bylaws for Council and Committee meetings. o Maintains the official records of the municipality. o Commissioner of Oaths Authorized signatory for the District. o Manages and coordinates matters related to land and legal issues. o Processes requests for information under the Freedom of Information and Protection of Privacy Act. Highlights Page 15 o Met all statutory reporting deadlines. o Number of processed Freedom of Information Requests lowered from 17 in 2015 to 7 for o Established a Community Grant Policy to promote grant funding through the Lillooet Community Foundation. o Established a Freeman Award Policy and held a successful Freeman Award ceremony.

19 Page 16 HUMAN RESOURCES Human Resources staff provides specialized advice and assistance to all District employees in matters relating to recruitment, labour relations, training and development, benefit administration, wage and salary administration and many other areas. Responsibilities o Oversee employee and labour relations matters. o Provide support to employees in regards to compensation and benefits. o Develop and manage the corporate training program and manage employee development programs. o Administer the District s Occupational Health and Safety Program. Highlights o Hired a Chief Administrative Officer to overlook the operation of the District. o Hired a Director of Public Works and Utilities. o Hired five summer students. INFORMATION TECHNOLOGY SERVICES Information Technology staff provides municipal departments with support and assistance related to the computer and telephone systems within the District. Responsibilities o Coordinate and follow through on short and long-term strategic plans including acquisition of corporate computer equipment, IT services and telecommunications equipment/services. o Ensure effective operation of the District s information technology infrastructure. o Evaluate and recommend capabilities of hardware and software applications for the municipality. Highlights o Improvement to wireless link between the District Office and Recreation Centre, which addressed performance issues. o Established wireless link between the District Office and Fire Hall to connect to network and reduce ongoing operating cost.

20 Page 17 FINANCE The Finance Department provides visionary stewardship over the District s financial resources and supports other departments in the provision of quality services to the citizens of Lillooet. The Department also oversees Purchasing operations. Responsibilities o Short and long-term operational and capital financial planning. o Internal and external financial reporting. o Property tax rate recommendations. o Processing and collection of property taxes. o Utility and other receivables billings. o Payroll and general accounting. o Payment of goods and services including processing of purchasing card transactions. Highlights o Audited financial statements were presented to and approved by Council in advance of the May 15th deadline for the first time since o Paid off the remaining $1.2 million in short term debt utilizing accumulated surplus; which is reflected as part of the District s 38% increase in net financial assets. o Selected a new agent for the District s insurance policies reducing the District s annual insurance expense by 20%. o Selected a new auditing firm for the District s annual financial statements.

21 Page 18 ECONOMIC DEVELOPMENT The Economic Development Department addresses issues of community sustainability and growth. The department supports grant writing, community development activities and projects as well as community relationship building. Alongside the Corporate Administration Department, this Department also manages the marketing and communications within the District. Responsibilities o Act as a liaison between various municipal departments and the business and development community. o Support tourism marketing, promotion, and attract tourism related infrastructure investment such as accommodation, destination and tourism sites, and food and beverage operators. o Coordinate regional tourism advertising. Highlights o Provide continuous, positive District of Lillooet representation at meetings with various regional organizations and stakeholders. o Completed and celebrated Gateway Revitalization Project Phase 2. o Completed and celebrated Golden Miles of History Project. o Successfully launched and continue to promote Love Lillooet.

22 Page 19 RECREATION The Recreation Department s goal is to provide safe, welcoming and affordable programs, recreational and cultural opportunities in partnership with the community for the enjoyment of residents and visitors to Lillooet. Responsibilities o Operate and manage the Lillooet Recreation Centre ice arena, pool and fitness areas. o Provide a variety of drop-in and registered programs for children, teens and seniors. o Work with the residents of Lillooet and neighbouring communities to support the provision of a wide range of community and volunteer organized parks and recreation services. o Act as an educational and awareness resource on the importance of social heath to community development and growth. Highlights o In celebration of June is Fitness Month, all REC passes cost $20 for the entire month of June increasing weight room usage significantly during this month. o A successful start to the season s pool opening on June 5 took place with a free swim and hot dogs. o Conway Park was host to a variety of events and programs including; soccer and baseball with Just Do It Sports, two weekend ball tournaments (rentals), 16+ years Funball, and the Eureka Science Camp and British Soccer Camp through TRU. o The Lillooet and District REC Field and Arena were host to the July Apricot Festival events as follows: Show n Shine, Lawn Dance and Beer Garden. The Movie Under the Stars and Aboriginal Days events were also orchestrated there. o The Lillooet and District REC Centre received a facelift with the installation of new siding and painting of the front portion of the building. o The Lillooet and District REC Centre was awarded the BCAA Playground prize and the playground was erected shortly after.

23 Page 20 PUBLIC WORKS AND UTILITIES PUBLIC WORKS The Public Works and Utilities Department provides a level of service to the community that ensures a reliable and efficient network of safe roads and pedestrian ways, a network of effective drainage and diking systems, operation and maintenance of the water and sanitary sewer utilities, operation and maintenance of the airport, an effective emergency and operations radio communications system, a responsive emergency preparedness plan and a reliable and cost effective equipment fleet. Responsibilities o Oversee the curbside collection contract for garbage. o Oversee the road and drainage maintenance programs. o Ensure reliable water distribution and sanitary sewer collection. o Maintain environmental protection for all municipal infrastructure and construction including: street lighting, signs, pavement management and line markings, snow removal and airport.

24 Page 21 Highlights o Extensive training provided to public works staff to bring them back into compliance with their certifications. o Joint Occupational Health and Safety committee. o Pavement Management Plan completed. o Kiosks installed for Golden Mile of History. o Sidewalk bricking was redone around some trees downtown to improve bumpy sections. o Hydrant maintenance continued with the replacement of five hydrants. o Finished one full year of operating the new Water Treatment Plant. o All of the sewer collection lines were flushed with the Jetter. o Insulation was added to the filter room at the Wastewater Treatment Plant. o The damaged portion of the airport runway was repaired and the entire length was re-sealed. o The well pump at the airport was replaced. o Drag races were held at the airport during the Apricot Festival. o New signage and picnic tables were installed at the Cayoosh Campground. o Improvements made to the Cayoosh Creek Campground. o There is significant settling of headstones in the cemetery. To date, approximately 25% of the headstones have been raised with this project to be continued in 2017.

25 Page 22 BUILDING DIVISION The Building Division is responsible for ensuring all construction within the District complies with the BC Building Code, the District s building and zoning bylaws and other related regulations. Responsibilities o Issue building and sign permits. o Monitor compliance with building permits. o Perform building inspections. Highlights o 47 Residential permits issued covering $1.35 million of construction. o 24 Industrial/Commercial/Institutional permits issued covering $1.30 million of construction. o 71 permits total compared to 54 permits issued in BYLAW ENFORCEMENT AND ANIMAL CONTROL The Bylaw Enforcement Department is responsible for administering and enforcing regulatory bylaws within the District in a fair and effective manner, including business licensing. Bylaw Enforcement is also responsible for overseeing all animal control services ensuring pets are a positive addition to the community. Bylaw also currently reads the water meters, repairs damaged meters and informs customers of potential leaks. Responsibilities o Receive and handle bylaw complaints to gain compliance with municipal bylaws. o Receive applications and issue business licenses. o Oversee District animal control services which include patrolling neighbourhoods for stray animals and returning lost pets to their owners. o Enforce parking restrictions throughout the District as needed. o Read water meters and inform customers of potential leaks. Highlights o 217 total complaints. o 220 dog licenses sold. o 233 active business licenses. o 6 large leaks found in 2016.

26 Page 23 FIRE Mission The mission of the Lillooet Fire Department is to protect the lives and property of our citizens and the visitors we serve, by providing prompt and professional services in the event of fire, medical emergencies and disasters or any other event which may threaten the public welfare. The goal of the Fire Department is to provide the citizens of Lillooet with realistic and effective fire service. As well as providing a variety of fire and safety related services to the public, including emergency and nonemergency responses to fires, fire alarms, motor vehicle accidents, etc. Responsibilities o Emergency response to fire, motor vehicle accidents, hazardous materials, medical emergencies, alarms and public assists. o Offer public education programs, varying from lectures on fire safety to fire extinguisher training. o Perform fire safety inspections to ensure compliance with the Fire Service Act and the B.C. Fire Code. o Emergency Preparedness Programs and operation of the Emergency Operation Centre. Highlights o Made small gains to start working with adjacent First Nations communities and the SLRD in regards to Emergency Planning. Essential equipment for the program has been obtained this year, which will better support the program for years to come. o Invited adjacent community fire departments to participate in joint training opportunities. The Lillooet Fire Department fully intends to continue working on promoting opportunities for the surrounding departments as much as possible. With the improvement made this year on the department s training grounds it will help to enhance future training opportunities.

27 Page 24 o Promoted opportunities for First Nations Volunteers on the Lillooet Fire Department. Two of our active First Nations members have been promoted to key officer roles within the department. In the coming years our recruitment goal is also to focus on gender equality and other ethnic groups within the community.

28 Page 25 FINANCIAL OVERVIEW ( s Financial Statements)

29 Page 26 INDEX TO FINANCIAL OVERVIEW Consolidated Financial Statements Management s Responsibility for Financial Reporting...27 Auditors Report Consolidated Statement of Financial Position...29 Consolidated Statement of Operations Consolidated Statement of Change in Net Financial Assets...31 Consolidated Statement of Cash Flows Notes to Consolidated Financial Statements

30 Page 27 Management's Responsibility for Financial Reporting The accompanying financial statements of the are the responsibility of management and have been approved by the Mayor and Council of the District. The financial statements of the have been prepared by management in accordance with Canadian Public Sector Accounting Standards. Financial statements are not precise as they include certain amounts based on estimates and judgments. When alternative accounting methods exist, management has chosen those it deems most appropriate in the circumstances, in order to ensure that the financial statements are presented fairly, in all material respects. The maintains systems of internal accounting and administrative controls of high quality, consistent with reasonable cost. Such systems are designed to provide reasonable assurance that the financial information is relevant, reliable and accurate and that the District's assets are appropriately accounted for and adequately safeguarded. The is responsible for ensuring that management fulfills its responsibilities for financial reporting and is ultimately responsible for reviewing and approving the financial statements. Council carries out this responsibility principally through its Finance department. The Mayor and Council review the District's financial statements and recommend their approval. The Mayor and Council meet periodically with management, as well as the external auditors, to discuss internal controls over the financial reporting issues, to satisfy themselves that each party is properly discharging their responsibilities, and to review the annual report, the financial statements and the external auditor's report. The Mayor and Council take this information into consideration when approving the financial statements for issuance to the ratepayers. The Mayor and Council also appoint the engagement of the external auditors. The financial statements have been audited by PricewaterhouseCoopers LLP in accordance with generally accepted auditing standards on behalf of the ratepayers. PricewaterhouseCoopers LLP has full access to the Council and management of the. Xi L'Heureux, Deputy Director of Finance f Margaret Lampman, Mayor 1

31 Page 28 INDEPENDENT AUDITORS' REPORT To the Mayor and Council of the We have audited the accompanying financial statements of the, which comprise the statement of financial position as at December 31, 2016, and the statements of operations, change in net financial assets and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these 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 financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of the as at December 31, 2016, and its financial performance and its cash flows for the year then ended in accordance with Canadian Public Sector Accounting Standards. Other Matter The financial statements of the for the year ended December 31, 2015 were audited by another auditor who expressed an unmodified opinion on those statement on May 9, P/7,W (AT:7e /c. Prince George, BC April 18, 2017 Chartered Professional Accountant

32 Page 29 Dibtrict of Lillooet Statement of Financial Position December Financial Assets Cash and Cash Equivalents (Note 3) 3,372,445 $ 2,359,534 Investments (Note 4) 1,562,414 1,547,700 Receivables (Note 5) 782,001 2,091,709 Inventory 36,416 50,148 Liabilities 5,753,276 6,049,091 Accounts Payable and Accrued Liabilities (Note 6) 359, ,495 Employee Future Benefits (Note 7) 90, ,102 Deferred Revenue (Note 8) 410, ,435 Restricted Revenue 31,335 31,164 Temporary Borrowing (Note 9) 1,200,000 Obligations Under Capital Lease (Note 10) 66, ,668 Long Term Debt (Note 11) 489, ,767 1,447,493 2,962,631 Net Financial Assets 4,305,783 3,086,460 Non-Financial Assets Prepaid Expenses 42,999 51,041 Tangible Capital Assets (Note 12) 30,719,905 31,515,652 30,762,904 31,566,693 Accumulated Surplus (Note 13) $ 35,068,687 $ 34,653,153 'Heureux, Deputy Director of Finance Margaret Lampman, Mayor The accompanying notes are an integral part of these financial statements. 3

33 District of Boo t Page 30 Statement of Operations Budget For the Year Ended December 31 (Note 21) Revenue (Note 15) Taxation - net (Note 16) 2,463,219 $ 2,461,884 $ 2,397,363 Utility Connection Fees and User Rates (Note 17) 1,160,947 1,148,732 1,073,050 Sale of Services (Note 18) 584, , ,741 Government Transfers (Note 19) 1,333,071 1,137,045 3,598,657 Interest and Penalties (Note 20) 72,300 55,615 68,405 Donations 11,200 4,201 4,000 Investment Income 18,593 80,685 68,670 5,643,361 5,474,187 7,731,886 Expenses (Note 15) General Government 896, ,999 1,002,837 Development Service 350, , ,290 Public Works and Transportation 711,932 1,055, ,871 Protective Services 344, , ,436 Parks, Recreation and Culture 804, , ,978 Environmental Health Services 212, , ,787 Water Utility Services 740,462 1,141, ,483 Sewer Utility Services 477, , ,372 4,538,459 5,058,653 4,644,054 Excess of Revenue Over Expenses 1,104, ,534 3,087,832 Gain (Loss) on disposal of tangible capital assets (43,500) Annual Surplus 1,104, ,534 3,044,332 Accumulated Surplus, beginning of year 34,653,153 34,653,153 31,608,821 Accumulated Surplus, end of year (Note 13) $ 35,758,055 $ 35,068,687 $ 34,653,153 The accompanying notes are an integral part of these financial statements. 4

34 Page 31 Statement of Change in Net Financial Assets Budget For the Year Ended December 31 (Note 21) Annual Surplus $ 1,104,902 $ 415,534 $ 3,044,332 Acquisition of tangible capital assets (1,458,993) (427,781) (3,181,349) Amortization of tangible capital assets 1,223, ,056 Disposal of tangible capital assets 263,500 (354,091) 1,211,281 1,072,539 Increase in prepaid expenses 8,042 (18,636) Increase (decrease) in net financial assets (354,091) 1,219,323 1,053,903 Net financial assets, beginning of year 3,086,460 3,086,460 2,032,557 Net financial assets, end of year $ 2,732,369 $ 4,305,783 $ 3,086,460 The accompanying notes are an integral part of these financial statements. 5

35 Page 32 Dstrict of Lillooet Statement of Cash Flows For the Year Ended December CASH FLOWS FROM OPERATING ACTIVITIES: Annual surplus $ 415,534 $ 3,044,332 Amortization of tangible capital assets 1,223, ,056 Increase (decrease) in deferred revenue (4,284) 101,320 Loss on disposal of tangible capital assets 43,500 Increase (decrease) in receivables 1,309,708 2,151,351 Increase (decrease) in inventories 13,732 (755) Increase (decrease) in prepaid expense and other assets 8,042 (18,636) Increase (decrease) in accounts payable and accrued expenses (141,652) (372,721) TOTAL CASH FLOWS FROM OPERATING ACTIVITIES 2,824,608 5,894,447 CASH FLOWS FROM INVESTING ACTIVITIES: Disposition of portfolio investments, net of additions (14,714) (11,315) CASH FLOWS FROM FINANCING ACTIVITIES: Repayments of short-term debt (1,200,000) (929,050) Repayments of long-term debt (112,520) (107,983) Repayments of long-term capital lease obligations (56,853) (55,713) Restricted revenue collections and interest earnings NET CASH USED BY FINANCING ACTIVITIES (1,369,202) (1,092,560) CAPITAL ACTIVITIES: Payments to acquire property, plant and equipment (427,781) (3,181,349) Proceeds from sale of property, plant and equipment 220,000 NET CASH USED BY CAPITAL ACTIVITIES (427,781) (2,961,349) Net cash increase (decreases) in cash and cash equivalents 1,012,911 1,829,223 Cash and cash equivalents at beginning of period 2,359, ,311 Cash and cash equivalents at end of period $ 3,372,445 $ 2,359,534 The accompanying notes are an integral part of these financial statements. 6

36 Page 33 Notes to the Financial Statements For the Year Ended December 31, 2016 The notes and schedules to the financial statements are an integral part of the statements. They provide detailed information and explain the significant accounting and reporting principles that form the basis for the statements. The notes and schedules also provide important supplementary information and explanations, which cannot be conveniently integrated into the financial statements. The principal activities of the (the District) include the provision of local government services to residents and businesses. The Community Charter requires local governments to adopt a five year financial plan; wherein, total budgeted expenditures and transfers to other funds for each year must not exceed the total of the budgeted funding sources and transfers from other funds for each year. Budget information presented in the financial statements reflects the budget for the year 2016 of the 's Financial Plan Bylaw 2016, No. 441 which was adopted by Council on April 4, Significant Accounting Policies a. Basis of Presentation The financial statements of the District are prepared in accordance with Canadian public sector accounting standards established by the Public Sector Accounting Board (PSAB) of the Chartered Professional Accountants Canada. b. Basis of Accounting The financial statements are prepared using the accrual basis of accounting. The accrual basis of accounting records revenue as it is earned and becomes measurable. Expenses are recognized as they are incurred and become measurable based upon receipt of goods or services and/or the creation of a legal obligation to pay. The District has a Cemetery Perpetual Care Trust Fund that has been established pursuant to the Cremation, Interment and Funeral Services Act (the Act); this Trust Fund provides funds that will be used for the eventual closure and upkeep of the cemetery. As well, the District holds, in trust, funds for the Lillooet Community Foundation. In accordance with PSAB standards, these amounts are excluded from the financial statements of the District (Note 23) c. Use of Estimates The preparation of financial statements in conformity with Canadian public sector accounting standards established by PSAB requires management to make estimates and assumptions that affect the reported amounts of certain receivables and accrued liabilities as at the date of the financial statements, and that affect the reported amount of related revenues and expenses during the reporting period. As such, actual results could differ from the estimates. Areas requiring the greatest degree of estimation include employee future benefits, the assessment of contingent liabilities, the allowance for doubtful accounts receivable, and the estimated useful lives of tangible capital assets. d. Cash and Cash Equivalents All cash and short-term investments with original maturities of three months or less are considered cash and cash equivalents, since they are readily convertible to cash. These short-term investments are stated at cost, which approximates fair value. e. Inventories Held for Resale Inventories held for resale include only fuel for resale at the Lillooet Municipal Airport and are valued at the lower of cost and net realizable value. Cost is generally determined on a first-in, first-out basis. 7

37 Page 34 Notes to the Financial Statements For the Year Ended December 31, Significant Accounting Policies f. Investments Investments are recorded at cost. Investments are written down to net realizable value when there has been, in the opinion of management, a decline in market value that is not temporary. Investments in the Municipal Finance Authority (MFA) of British Columbia Funds are subsequently recorded at market value, which approximates cost. g. Non Financial Assets Non-financial assets are not available to discharge existing liabilities and are held for use in the provision of services. They have useful lives extending beyond the current year (with the exception of prepaid expenses), and are not intended for sale in the ordinary course of operations. h. Tangible Capital Assets Tangible capital assets, which are a type of non-financial asset, are initially recorded at cost, which includes all amounts that are directly attributable to acquisition, construction, development or betterment. The costs of tangible capital assets, less residual value, are amortized on a straight-line basis over their estimated useful lives, as follows: Asset Category Buildings and Improvements Land Landfill Infrastructure Machinery and Equipment Park Improvements Roads and Sidewalks Sewer Infrastructure Storm Sewer Infrastructure Water Infrastructure Useful Life Range 25 to 70 years not amortized 10 to 50 years 3 to 30 years 15 to 25 years 14 to 60 years 10 to 70 years 25 to 40 years 20 to 70 years In the year of acquisition or disposal, amortization is prorated based on the number of months that the tangible capital asset is in service or use in the year. Assets under construction (also known as work-in-progress) are not amortized until they are put into service. i. Deferred Revenue Certain contributions and other amounts are received from third parties pursuant to legislation, regulation or agreement. These amounts may only be used to conduct certain programs, complete specific work, or to purchase tangible capital assets, as specified by the transferring party. In addition, certain user fees and charges are collected, for which the related services have yet to be performed. These revenues are recognized in the period when the related expenses are incurred, services performed, or the tangible capital assets are acquired. 8

38 Notes to the Financial Statements Page 35 For the Year Ended December 31, Significant Accounting Policies J. Restricted Revenue Revenues or receipts, which are restricted by legislation or that contain stipulations that create a liability, are deferred and reported as restricted revenues. When qualifying expenditures are incurred and/or stipulations are met, restricted revenues are recognized as revenues in the period which this occurs. Restricted revenue for the District is made up of the parkland acquisition reserve and related inflows. k. Employee Future Benefits The District and its employees make contributions to the Municipal Pension Plan (Plan), and the employees accrue benefits under this Plan based on service. The District's contributions to the Plan are expensed when incurred. In addition to the Municipal Pension Plan; sick leave and other benefits also accrue to the District's employees. The costs of these benefits are actuarially determined based on years of service, estimated retirement age, and expected future salary and wage levels. The obligations under these benefit plans are accrued based on the projected benefits earned as the employees render the services necessary to earn the future benefits. I. Revenue Recognition Sources of revenue are recorded on the accrual basis and include revenue in the year in which the transactions or events occurred. Taxation revenues are recognized at the time of issuing the property tax notices for the fiscal year. Utility connection fees and sale of services are recognized when the service or product is rendered by the District. Utility rate fees are recognized as revenue at the time of issuing the annual utility notices for the fiscal year. m. Government Transfers 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 an obligation that meets the definition of a liability. Transfers are recognized as deferred revenue when transfer stipulations give rise to a liability. Transfer revenue is recognized in the statement of operations as the stipulated liabilities are settled. n. Contaminated Sites Under PS3260, govemments are required 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 a responsibility for remediation, future economic benefits will be given up and a reasonable estimate can be made. There were no such sites that had contamination in excess of an environmental standard which required remediation at this time; therefore, no liability was recognized at December 31, Comparative Figures Certain prior year figures, presented for comparative purposes, have been reclassified to conform to the current year's financial statement presentation. 9

39 Page 36 Notes to the Financial Statements For the Year Ended December 31, Cash and Cash Equivalents Petty Cash and Floats 840 $ 840 Bank Accounts 3,371,605 2,358,694 3,372,445 $ 2,359, Investments MFA Intermediate Fund $ 287,777 $ 284,611 MFA Money Market Fund 1,274,637 1,263,089 $ 1,562,414 $ 1,547,700 The objective of the Municipal Finance Authority (MFA) Money Market Fund is to provide participants with a competitive level of current interest income by investing primarily in high quality money market instruments with maturities of 366 days or less. The MFA Intermediate Fund invests primarily in high quality fixed income and money market securities with maturities of up to 2 years. The annualized rates of return for 2016 on the MFA Money Market Fund and the MFA Intermediate Fund were 0.79% and 1.13%, respectively. 5. Receivables Accounts Receivable $ 380,588 $ 1,734,771 Taxes Receivable 384, ,349 Utilities Receivable 16,781 84, ,001 $ 2,091,709 10

40 Page 37 Notes to the Financial Statements For the Year Ended December 31, Accounts Payable and Accrued Liabilities Accounts Payable 331,253 $ 326,258 Wages and Benefits Payable 28, ,011 Interest Payable 12,226 $ 359, ,495 11

41 Page 38 Notes to the Financial Statements For the Year Ended December 31, Employee Future Benefits The District provides sick leave benefits to its employees. In addition, employees may have unused vacation and banked time benefits that are payable at year-end. Under the sick leave plan, qualifying employees accrue one and a half days of sick leave per month to a maximum of 135 days. Employees of the District hired before January 1, 2016 shall, after 10 years of service (7 years for employees hired before January 1, 2002) be entitled to receive a salary grant in lieu equal to their accrued benefit, but not to exceed 105 days paid at their current rate of pay. Employees of the Recreation Centre and employees of the District hired January 1, 2016 or later, are not entitled to this salary grant in lieu. The District's estimated accrued sick pay benefit obligations are determined by actuarial valuation as at December 31, 2016 using data as of November 30, The significant actuarial assumptions adopted in measuring the District's accrued sick pay benefit obligations are as follows: Discount Rate 3.30 % 3.10 % % Wage/Salary Inflation 2.00 % 2.00 % The District's accrued Employee Future Benefit Obligations related to sick leave, vacation pay and banked time are as follows: Accrued Sick Benefit Obligation, beginning of year $ 88,281 $ 99,751 Service Cost 10,582 16,230 Interest Cost 2,991 3,334 Benefit Payments (vested) (44,851) Benefit Payments (non-vested) (1,068) (68) Actuarial (Gain) / Loss (23,227) 13,885 Accrued Sick Benefit Obligation, end of year 77,559 88,281 Vacation 13,093 61,821 $ 90,652 $ 150,102 12

42 Page 39 Notes to the Financial Statements For the Year Ended December 31, Deferred Revenue Prepaid Receivables (including prepaid taxes and utilities) $ 359,936 $ 364,689 Deferred Revenue 50,215 49, ,151 $ 414, Temporary Borrowing The District has temporary borrowing outstanding of $nil ($1,200,000 in 2015) for a road/drainage project. This borrowing had been anticipated to be converted to long-term debt and, as such, the majority of the debt had been previously classified as long-term debt. Under the direction of Council, the debt was, instead, paid in full while still part of short term or temporary borrowing. 10. Obligations Under Capital Lease The District has two capital lease obligations as of December 31, Obligations under these capital leases are secured by the leased assets and ownership will transfer to the District at the end of the lease term. Rate Garbage Truck 2.0% $ 5,780 $ 42,750 Software/Server 2.0% 61,035 80,918 $ 66,815 $ 123,668 Principal paid during 2016 was $56,852 ( $55,713). Interest paid during 2016 was $4,284 ( $5,424). Subsegent to the year end, the District paid out the remaining lease obligations in full and, as at February 28, 2017, the balance owing on the capital leases was $nil. 13

43 Page 40 Notes to the Financial Statements For the Year Ended December 31, Long Term Debt The District issues debt instruments through the MFA, pursuant to security issuing bylaws, under authority of the Community Charter, to finance certain capital expenditures. The debt is issued on a sinking fund basis, whereby MFA invests the District's principal payments so that the payments plus investment income, will equal the original outstanding debt amount at the end of the repayment period. Actuarial earnings on debt represent the repayment and/or forgiveness of debt by the MFA using surplus investment income generated by the principal payments. Gross amount of debt and the repayment and actuarial earnings to retire the debt are as follows: Issue No. Rate Gross Debt Repayment & Actuarial Earnings 2016 Net Debt 2015 Net Debt Year of Maturity Class A Pumper % S 274,340 $ (225,195) $ 49,145 $ 71, Rec Centre Upgrades % 508,906 (305,139) 203, , Sewer Treatment Plant % 723,895 (487,560) 236, , $ 1,507,141 $ (1,017,894) $ 489,247 $ 601,767 The prior years financial statements had classified the majority short-term or temporary borrowing for the road/drainage project as long-term debt in anticipation of it being converted. This borrowing was, instead, paid in full during the year ended December 31, 2016 and, therefore, is classified as temporary borrowing. (Note 9) Scheduled debt repayments may be suspended in the event of excess sinking fund earnings within the MFA. Principal paid during 2016 was $74,281 ( $74,281). Interest paid during 2016 was $33,292 ( $49,456). The MFA performs a rate reset on long-term loans each 5 year period begining after the first 10 year term; therefore, interest rates on long-term debt are subject to change. Future principal payments, including sinking fund additions, on existing debt are as follows: 2017 $ 117, , , , ,011 $ 489,247 14

44 Page 41 Notes to the Financial Statements For the Year Ended December 31, , Tangible Capital Assets Engineering Structures Land Park Improv's Buildings Equipment, Furniture & Vehicles Transportation Sewer System Storm Sewer Water System Assets Under Construction Cost, beginning of year $ 3,143,506 S 507,788 $ 6,950,280 S 2,902,737 S 10,310,162 $ 4,416,105 $ 1,352,817 S 15,039,474 S 1,982,913 $ 46,605,782 $ 43,687,933 Additions 2,846 64, , ,874 23,749-1,982,913 (1,982,913) 427,781 3,237,026 Disposals (319,177) Cost, end of year 3,143, ,634 7,014,622 3,052,707 10,492,036 4,444,854 1,352,817 17,022,387 47,033,563 46,605,782 Accumulated amortization, beginning of year 349,770 3,160,310 1,856,271 5,106,180 1,421, ,059 2,930,827 15,090,130 14,144,074 Amortization 16, , , , ,957 17, ,704 1,223, ,056 Accumulated amortization, end of year 366,431 3,328,470 1,997,447 5,324,235 1,539, ,874 3,474,531 16,313,658 15,090,130 Net carrying amount, end of year $ 3,143,506 $ 144,203 S 3,636,152 $ 1,055,260 S 5,167,801 S 2,905,184 S 1,069,943 S 13,547,856 S $ 30,719,905 $ 31,515,652 15

45 Page 42 Notes to the Financial Statements For the Year Ended December 31, Accumulated Surplus Increase (Decrease) Unappropriated Surplus General Operating Surplus (includes recreation) $ 1,130,859 $ 1,317,868 $ (187,009) Airport Operating Surplus 9,971 15,553 (5,582) Water Operating Surplus 690, ,358 (42,205) Sewer Operating Surplus 387, , ,878 2,218,528 2,348,446 (129,918) Appropriated Surplus General Fund Reserves 155, ,148 50,576 Water Fund Reserves 315, ,672 39,489 Sewer Fund Reserves 110, ,141 (30,556) 581, ,961 59,509 Reserve Funds General Capital Reserves 625, ,251 74,985 Water Capital Reserves 69,284 44,043 25,241 Sewer Capital Reserves 25,000 25,000 Cemetery Replacement Reserve 36,192 34,458 1,734 Community Works Gas Tax Reserve 682, , ,923 Vehicle and Equipment Reserves 295, ,792 (61,995) Land Sales Reserve 370, ,343 2,017 2,104,848 1,886, ,905 Investment in Tangible Capital Assets 30,163,841 29,895, ,038 Accumulated Surplus $ 35,068,687 $ 34,653,153 $ 415,534 16

46 Page 43 Notes to the Financial Statements For the Year Ended December 31, Segment Reporting The District provides a wide range of municipal services. These services have been grouped into related departmental functions or service areas for segment reporting purposes. Enclosed Schedule 1 shows the associated revenues and expenses for each segment. The various segments or associated departmental functions/service areas are as follows: General Government Services This segment is comprised of services that relate to the legislative function as well as the administrative and financial management of the municipality. Legal administration, grants, records management, human resources management, information technology and elections all fall within General Government Services. Development Services This segment includes the economic development function, municipal planning, building and land development services. Public Works and Transportation Services This segment is comprised of services such as the annual maintenance of all municipal owned roads, drainage, street signage, facilities, equipment as well as general public works administration. The airport is also included in this segment and is comprised of the annual maintenance services at the Lillooet Municipal Airport. This airport service includes the sale of JetA and AvGas fuels. Parks, Recreation and Cultural Services This segment is comprised of services meant to improve the health and development of the citizens of Lillooet. Included in this segment is the Lillooet & District Recreational, Education and Cultural Centre which houses an indoor ice arena and swimming pool, meeting rooms, weight rooms, gymnasium, squash and racquetball courts and provides recreational programs such as swimming lessons and exercise programs. This segment also includes operation of the Miyazaki Heritage House that houses local history and displays the work of local artisans and oversees Music at the Miyazaki the music in the park summer program. Maintenance and heating costs of the museum building are also included in this segment. In addition, this segment includes the operation and maintenance of all parks, including baseball and soccer fields, children's playgrounds and green space. 17

47 Page 44 Notes to the Financial Statements For the Year Ended December 31, Segment Reporting Protective Services This segment includes a volunteer fire department which is responsible for providing fire suppression service, fire inspections of public buildings, and training and education of volunteer firemen as well as the citizens of Lillooet. This segment includes emergency planning, which involves evacuation plans for municipal residents in the case of emergencies such as wild fires or planning for scenarios such as a plane crash at the Lillooet Municipal Airport. This area also includes the maintenance and enforcement of building and construction bylaws as well as all other municipal bylaws. It also includes maintenance and operation of the municipal fire hydrants. Fire protection services are sold to the community of T'it'q'et, the Cayoose Creek Band and to a small portion of Area B of the Squamish- Lillooet Regional District. Environmental Health Services This segment is comprised of a solid waste collection and disposal services provided to the citizens of Central Lillooet, and operation of the Municipal cemetery and Lillooet weather station. Water Utility Services This segment includes services that provides the municipality's drinking water to Central Lillooet, North Lillooet, and the Industrial Park in East Lillooet. Water from the Central Lillooet system is also sold to the community of T'it'q'et. Sewer Utility Services This segment includes services that provide for the removal and treatment of the municipality's waste water in Central Lillooet with the exception of McEwen Road. This service is also provided to the community of T'it'q'et. 18

48 Page 45 Notes to the Financial Statements For the Year Ended December 31, Segmented Information General Government Development Services Public Works & Transportation Protective Services Parks, Recreation & Culture Environmental Health Water Utility Sewer Utility 2016 Budget 2015 Revenue Taxation-net S 2,239,841 $ $ $ $ $ - S 116, ,441 $ 2461,884 $ 2463, ,397,363 Utility Connection Fees and User Rates - 215, , ,122 1,148,732 1,160,947 1,073,050 Sale of Services 115,795 3,800 56,993 92, ,214 10, , , ,741 Government Transfers 602, ,220 19,958 86,541 30,174 1,137,045 1, ,598,657 Interest and Penalties 40,794 4,276 6,630 3,915 55, ,405 Donations 100 1,211 2,890 4,201 11,200 4,000 Investment Income 39,491 80,685 18,593 68,670 3,038, ,120 76, , , , , ,478 5,474,187 5,643,361 7,731,886 Expenses Salaries and Wages 500,298 4, , , ,324 30, ,783 96,464 1,607,291 2,014,568 1,691,454 Employee Expenses 44,278 8,730 30,021 5,645 3,130 2,845 94, ,482 88,379 Materials and Supplies 45,473 7, ,104 43,622 38,336 21,757 68,262 11, , , ,127 Equipment and Facilities 29,482 7,340 84,476 26, , ,183 40, , , ,972 Communications and Information 60,405 29,075 6,671 8,707 14, ,912 8, , , ,369 Interest on Debt 6,106 5,761 16,310 3,060 11,220 42,457 82,255 87,404 Administration, Insurance and Conditions of Use (46,182) 1,070 1,546 13,766 35,699 46,241 98,392 37, , , ,202 Contracted Services 67, , ,954 18, , , ,153 94, ,532 1,000, ,155 Amortization 43,755 4, ,511 35, , , ,077 1,223, ,056 Grants, Awards and Council Expenses 9,319 40,920 1,043 5,469 56,751 68,700 41, , ,856 1,055, , , ,301 1,141, ,330 5,058,653 4,538,459 4,644,054 SUBTOTAL 2,278,230 (75,736) (978,645) (125,701) (585,792) 14,784 (476,794) 81, ,534 1,104,902 3,087,832 Gain (Loss) on disposal of tangible capital assets (43,500) Annual Surplus $ 2,278,230 $ (75,736) $ (978,645) $ (125,701) $ (585,792) $ 14,784 $ (476,794) $ 81,148 $ 415,534 S 1,104,902 $ 3,044,332 19

49 Page 46 Notes to the Financial Statements For the Year Ended December 31, Taxation Budget General Municipal Taxation $ 2,031,516 2,031,433 $ 1,951,423 Parcel and Frontage Taxes 221, , ,799 Grants in Lieu of Taxes 180, , ,330 1% Revenue Sharing 29,829 29,953 29,811 Total municipal taxation 2,463,219 2,461,884 2,397,363 Collections for Other Taxing Authorities Province of BC - School Taxes 1,298,025 1,387,368 1,305,825 Province of BC - Police Taxes 109, , ,279 Squamish Lillooet Regional District 213, , ,420 Thompson Regional Hospital District 129, , ,066 BC Assessment Authority 19,561 18,694 19,721 Municipal Finance Authority Total collections for other taxing authorities 1,770,237 1,872,099 1,782,367 Payments to Other Taxing Authorities Province of BC - School Taxes (1,298,025) (1,387,368) (1,305,825) Province of BC - Police Taxes (109,278) (110,475) (110,279) Squamish Lillooet Regional District (213,450) (226,780) (215,420) Thompson Regional Hospital District (129,868) (128,725) (131,066) BC Assessment Authority (19,561) (18,694) (19,721) Municipal Finance Authority (55) (57) (56) Total payments to other taxing authorities (1,770,237) (1,872,099) (1,782,367) Net taxation for municipal purposes $ 2,463,219 $ 2,461,884 $ 2,397,363 20

50 Page 47 OL.,1Tict of Lillooet Notes to the Financial Statements For the Year Ended December 31, Utility Connection Fees and User Rates Budget User Fees $ 1,175,418 $ 1,170,317 $ 1,092,737 Discounts (16,971) (23,681) (21,890) Service and Connection Fees 2,500 2,096 2,203 1,160,947 $ 1,148,732 $ 1,073, Sale of Services Budget Rentals and Leases $ 263,853 $ 245,474 $ 244,253 Fees 188, , ,508 Cemetery Sales 8,600 10,131 4,588 Fuel Sales 62,000 54,549 55,043 Permits, Licences and Fines 44,000 54,322 43,344 Other 17,037 29,234 15,005 $ 584,031 $ 586,025 $ 521, Government Transfers Budget Federal Government Transfers $ 22,422 $ Provincial Government Transfers 775, ,173 3,482,526 Other Grants and Government Transfers 557, , ,131 $ 1,333,071 $ 1,137,045 $ 3,598,657 21

51 Dictr:zt of Lillooet Page 48 Notes to the Financial Statements For the Year Ended December 31, Interest and Penalties Budget Interest and Penalties on Taxes $ 49,300 $ 40,794 $ 52,653 Penalties on Utilities 23,000 14,821 15,752 72,300 $ 55,615 $ 68, Budget The financial plan data presented in these financial statements is based upon the 2016 financial plan approved by Council on April 4, The chart below reconciles the approved financial plan to the financial plan figures reported in these statements Budgeted surplus per Financial Plan Bylaw Capital Expenses 1,458,993 Principal Payments on Debt 130,832 Transfers to/from Own Funds (484,923) Budgeted surplus per Financial Statements $ 1,104, Letters of Credit The District is holding irrevocable letters of credit in the amount of $5,000 ( $50,000), which were received from parties to ensure completion of various works within the District. These amounts are not reflected in the financial statements but are available to satisfy any liability arising from non-performance by the parties. 22

52 Page 49 Notes to the Financial Statements For the Year Ended December 31, Trust Funds Cemetery Perpetual Care $ 37,091 $ 35,361 Lillooet Community Foundation 5,593 8,485 $ 42,684 $ 43,846 Trust funds administered by the District have not been included in the Financial Statements in accordance with PSAB guidelines. The Cemetery Perpetual Care trust fund is administered in accordance with the Cremation, Interment and Funeral Services Act and is used for the perpetual maintenance of the Lillooet Cemetery. The Lillooet Community Foundation trust fund is administered by the British Columbia Interior Community Foundation and was established in 2007 to improve the social, cultural, artistic, educational and recreational well-being of the residents of Lillooet. During the year, the trust awarded community grants in the amount of $6,666 ( $1,985). 23

53 istrict of Li Iooet Page 50 Notes to the Financial Statements For the Year Ended December 31, Municipal Finance Authority Debt Reserve Cash Deposits and Demand Notes The District issues debt instruments through the Municipal Finance Authority (MFA) of British Columbia. As a condition of these borrowings, a portion of the debt proceeds are withheld by the MFA in a debt reserve fund as cash deposits. These debt reserve funds may be used by the MFA if they do not have sufficient funds to meet the debt payment obligations of the participating municipalities. The District also executes demand notes in connection with each debt issue whereby the District may be required to loan certain amounts to the MFA. These demand notes are contingent in nature. The balances of the cash deposits and demand notes, which are not reported elsewhere in these financial statements, are as follows: MFA Cash Deposits General Fund $ 11,900 $ 11,576 Sewer Fund 10,893 10,597 22,793 $ 22, MFA Demand Notes General Fund 30,700 $ 30,700 Sewer Fund 27,306 27,306 $ 58,006 $ 58,006 24

54 Page 51 Notes to the Financial Statements For the Year Ended December 31, Municipal Pension Plan The District 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 provided are based on a formula. As at December 31, 2015, the plan has about 189,000 active members and approximately 85,000 retired members. Active members include approximately 37,000 contributors from local government. The most recent actuarial valuation as at December 31, 2015, indicated a $2,224 million funding surplus for basic pension benefits. The next valuation will be December 31, 2018, with results available in 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. The District paid $97,504 for employer contributions to the plan in fiscal 2016 ( $102,904) while employees contributed $84,782 to the plan in fiscal 2016 ( $86,791). 26. Contingencies The District has been named as a defendant in various legal actions. No reserve or liability has been recorded regarding any of these legal actions or possible claims as the amount of loss, if any, is indeterminable. Settlement, if any, made with respect to these actions would be accounted for as a charge to expenses in the period in which any outcomes are known. 25

55 Page 52 STATISTICAL INFORMATION