THE CORPORATION OF T H E C I T Y O F BRITISH COLUMBIA, CANADA 2017 annual report FOR THE FISCAL YEAR ENDED DECEMBER 31, 2017
Table of Contents 5 Introductory Section 6 Message from the Mayor 7 Message from the Chief Administrative Officer 8 City of Port Coquitlam Organizational Chart 9 Port Coquitlam City Council 10 City Snapshot 11 Economic Snapshot 12 2017 Highlights 13 Giving Back 14 Strategic Direction 15 Letter of Transmittal 17 DEPARTMENT OVERVIEWS 18 Office of the Chief Administrative Officer 20 Corporate Support 22 Development Services 24 Engineering & Public Works 26 Finance 28 Fire & Emergency Services 30 Human Resources 32 Recreation 34 RCMP 37 Financial Section 38 Auditors Report to the Mayor and Council 40 Consolidated Statement of Financial Position 41 Consolidated Statement of Operations 42 Consolidated Statement of Cash Flows 43 Consolidated Statement of Change in Net Financial Assets 44 Notes to the Consolidated Financial Statements 59 Statistical Section (unaudited) 60 Average Home Municipal Taxes and Utilities 61 Assessed Values for General Municipal Purposes 61 Population Estimates 62 Estimated Household Costs of City Services for an Average Single Family Residence 63 Property Taxes Levied and Collected 63 Taxes, Major Levies and Other Government Collections 64 Revenues by Source 64 Building Permits and Total Tax Collection 65 Expense by Function 65 Expense by Object 66 Capital Expenditures and Net Debt Per Capita 66 Capital Expenditures by Source 67 Surplus, Net Financial Assets and Debt 67 Accumulated Surplus 67 Summary of Major Statutory Reserve Funds 68 2017 Revenue 68 2017 Expenses 69 2017 Principal Corporate Taxpayers 69 2017 Permissive Property Tax Exemptions Produced with sugar cane waste, forest-free Sugar Sheet reduces deforestation and greenhouse gas. It looks, performs, recycles, and costs the same as traditional paper, with a low environmental impact. COMMUNITY RECREATION COMPLEX The City of Port Coquitlam broke ground in March 2017 on a vibrant community hub in the downtown. Existing recreation and library facilities are remaining open until they are replaced. New amenities will start opening as soon as 2019, and construction is scheduled to conclude in 2021. Info: www.portcoquitlam.ca/reccomplex. A YEAR IN PICTURES The City of Port Coquitlam would like to thank the photographers whose images brought life to the pages of our 2017 Annual Report.
THE CORPORATION OF T H E C I T Y O F BRITISH COLUMBIA, CANADA 2017 annual report FOR THE FISCAL YEAR ENDED DECEMBER 31, 2017 Prepared by the Communications Division in conjunction with the Finance Department
Financial Reporting Award CANADIAN AWARD FOR FINANCIAL REPORTING The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Canadian Award for Financial Reporting to the City of Port Coquitlam for its annual financial report for the fiscal year ended December 31, 2016. The Canadian Award for Financial Reporting program was established to encourage municipal governments throughout Canada to publish high quality financial reports and to provide peer recognition and technical guidance for officials preparing these reports. In order to be awarded a Canadian Award for Financial Reporting, a government unit must publish an easily readable and efficiently organized annual financial report, whose contents conform to program standards. Such reports should go beyond the minimum requirements of generally accepted accounting principles and demonstrate an effort to clearly communicate the municipal government s financial picture, enhance an understanding of financial reporting by municipal governments, and address user needs. 12th year receiving the financial reporting award The Government Finance Officers of the United States and Canada is a non-profit professional association serving more than 19,000 finance professionals throughout North America. 4 Annual Report 2017
Introductory Section City of Port Coquitlam 5
Message from the Mayor The verb building may make you think about hammers and nails as in, constructing something new or it may make you think about developing something to make it better. Both of those concepts apply to the theme of our 2017 annual report, Building Our Community. Port Coquitlam not only saw a record $219 million in building permit values in 2017, but we also undertook long-term planning activities intended to build an even more livable and prosperous community. There were signs of construction throughout our city in 2017, including some large City-led projects, like Blakeburn Lagoons Park the largest addition to our parks network in decades. We also broke ground on our new Community Recreation Complex in March 2017 and now eagerly await the first of the amenities to open in 2019. Set for completion in late 2021, this new community hub will play a central role in the ongoing enhancement of our downtown. Last year we completed a year-long planning exercise that led to the report Recommendations for a Downtown Action Plan, which identified ways we could further develop the area s potential. The building blocks are there. With its sidewalk cafés and tree-lined, pedestrian-friendly streets, our downtown both exudes an old-fashioned charm and has proven it can host thousands of people for events such as the PoCo Grand Prix and Downtown Car Show. Our downtown, our community spirit and our connection with nature all come together to create a small-town charm and sense of community that makes Port Coquitlam unique. As we continue to grow, some of the steps we re taking to build that brand include: hosting new events and festivals, like last year s Canada 150 celebration, planning livable neighbourhoods, including new housing options like carriage houses, growing our businesses, including supporting emerging industries and existing commercial areas, and making our community more walkable and cyclable, with pedestrian safety improvements, new cycling amenities and enhanced trails such as the Donald Street pathway. All of these actions encourage people to get out into the community, meet other residents and use local services ultimately, helping to preserve the special nature of our community as we build for the future. On behalf of the City of Port Coquitlam and City Council, I m pleased to share our 2017 accomplishments in this annual report. Greg Moore Mayor 6 Annual Report 2017
City Council Message from the Chief Administrative Officer If you want to build a solid, durable home, you start with a strong frame and foundation. The same is true in the world of local government. To be truly effective in meeting your commitments to the community, you must have a strong, resilient organization. As such, the theme of our 2017 Annual Report Building Our Community is also relevant to what happens behind the scenes at the City. The work we re doing to strengthen our organization is much like a renovation it adds value, but it isn t always immediately evident from the outside. In recent years, this work has included in-depth reviews of some of our services. From 2014 to 2017 we undertook Continuous Improvement Assessments (CIAs for short) in six specific areas to ensure we are delivering those services both efficiently and effectively. These six CIAs looked at our fleet operations, purchasing section, services shared by our Parks and Operations (now Public Works) divisions, customer service in inspections and compliance roles, recreation programming, and business licensing. Each CIA took a deep look at the service itself, its value, who was providing it, and how we delivered it. Importantly, each CIA committee included a representative from the private sector to provide a different perspective. The recommendations that come out of the CIAs were large and small. Sometimes only a minor administrative change was needed. At times we completely re-thought what we d been doing like when we moved our parks maintenance to the Public Works division in 2015, reducing significant overlap between the two areas. And sometimes the findings simply confirmed we were already doing things as effectively as we could. When we reviewed our CIA program at the end of 2017, we had saved approximately $155,000. There were also many improvements you can t quantify with a dollar figure, such as the goodwill created by better customer service, or a staff person s feeling of satisfaction from a job well done. In the end, these CIAs or focused renovations improved some specific services while also inspiring a culture of improvement, and ultimately strengthened the entire organization. John Leeburn, MBA Chief Administrative Officer City of Port Coquitlam 7
Organizational Chart CITIZENS OF PORT COQUITLAM (residents, property owners, businesses) CITY COUNCIL OFFICE OF THE CHIEF ADMINISTRATIVE OFFICER John Leeburn, BCOM, MBA Chief Administrative Officer CORPORATE SUPPORT Robin Wishart Director Divisions: Bylaw Services, Communications & Admin Services, Community Policing, Corporate Office, Information Services DEVELOPMENT SERVICES Laura Lee Richard, MCIP Director Divisions: Building, Planning, Development Engineering ENGINEERING & PUBLIC WORKS Kristen Dixon, P.Eng, MBA Director Divisions: Administration; Capital Projects, Infrastructure Planning, Public Works (incl. water, sewer, drainage, solid waste utilities) FINANCE Karen Grommada, CPA, CMA Director Divisions: Common Services, Finance Services (purchasing, accounting, financial planning, payroll, revenue services) FIRE & EMERGENCY SERVICES Nick Delmonico Fire Chief/City Emergency Coordinator Divisions: Administration; Emergency Preparedness, Fire Suppression, Training, Protective Services & Public Education HUMAN RESOURCES Steve Traviss, CHRP Director Functions: Benefits & Compensation, Occupational Health & Safety, Labour Relations; Recruitment, Training & Development RECREATION Lori Bowie, Bsc, MA Director Divisions: Recreation Services, Community Services, Facility Services RCMP Sean Maloney Superintendent, Officer-in-Charge Contracted service Municipal Auditors KPMG LLP Bankers Toronto Dominion Bank 8 Annual Report 2017
City Council Port Coquitlam City Council 2014-2018 at the March 2017 groundbreaking for the Community Recreation Complex: (left to right) Cllr. Glenn Pollock, Cllr. Mike Forrest, Cllr. Darrell Penner, Mayor Greg Moore, Cllr. Brad West, Cllr. Dean Washington and Cllr. Laura Dupont. City Council Elected every four years by the citizens of Port Coquitlam, City Council is a legislative body that provides leadership to the City s government. Port Coquitlam City Council is committed to ensuring the priorities of local citizens guide its policies and decisions on civic matters such as land use and budgets for operations and capital expenditures. City Council is made up of the Mayor and six Councillors, all of whom were elected for a fouryear term in 2014. The Mayor chairs the Council meetings. Issues requiring a Council decision generally appear first before one of the standing committees of Council. In 2017, these were the Community Safety Committee, Healthy Community Committee, Finance and Intergovernmental Committee, Smart Growth Committee, and Transportation Solutions & Public Works Committee. These committee meetings, along with Council s two regular meetings each month, are open to the public. Meeting agendas are available at City Hall or on the City website (www.portcoquitlam.ca/council). Live and archived broadcasts of Council meetings may also be viewed through the same web address. City of Port Coquitlam 9
City Snapshot Located in the heart of Metro Vancouver, British Columbia WHAT PORT COQUITLAM IS KNOWN FOR PoCo Pride Traboulay PoCo Trail Family-friendly neighbourhoods Incorporated March 7, 1913 29.17 km 2 total land area Hometown of Terry Fox Engaging citizens with technology Quaint downtown & small-town charm 2017 DEMOGRAPHICS GOVERNANCE City Council 58,612 people VISION 3,734 business licences 271 hectares of parks & trails Port Coquitlam is a happy, vibrant, safe community with healthy, engaged residents and thriving businesses, supported by sustainable resources and services. We strive to do it right by researching, planning, building and executing well-balanced solutions. 21,750 private dwellings MISSION 7 Council members provide leadership and set policies and budgets Structure Chief Administrative Officer Corporate Support Development Services Engineering & Public Works Finance Fire & Emergency Services Human Resources Recreation RCMP 10 Annual Report 2017
Economic Snapshot CONSTRUCTION PERMIT VALUE Total $ value new construction Total $ value improvements BUSINESS STATISTICS $220 million $180 million $140 million $100 million $60 million $40 million $0 2013 2014 2015 2016 2017 Business licences issued Source: Bylaw Services 2013 3,178 2014 3,261 2015 3,438 2016 3,581 2017 3,734 0 1000 2000 3000 4000 NEW CONSTRUCTION 2017: $198.1 MILLION IMPROVEMENTS 2017: $20.3 MILLION Top sectors based on 2017 licences Institutional ($115.1 mill) Accessory ($853,300) Single/two family ($12.2 mill) Structure ($39,000) Multi-family ($33.2 mill) Commercial ($300,000) Industrial ($36.4 mill) Institutional ($5.3 mill) Industrial ($5.4 mill) Single/two family ($2.1 mill) Multi-family ($1.1 mill) Commercial ($6.4 mill) Out-of-town Contractor (861) Manufacturing (249) Home-based (855) Professional Person (220) General (705) Retail (163) POPULATION & DWELLINGS Port Coquitlam B.C. Population in 2016 58,612 4,648,055 Population in 2011 55,958 4,400,057 2011 to 2016 population change 4.7% 5.6% Total private dwellings 2016 22,586 2,063,417 Total private dwellings 2011 21,533 1,945,365 Population density per sq. km 2016 2,009.4 5.0 Population density per sq. km 2011 1,931.3 4.8 Land area (square km) 29.17 922,509.29 Source: Statistics Canada - 2011 and 2016 Census Note: Census population estimates are lower than municipal and regional estimates. RECENT STATISTICS 93% are Canadian citizens 32% were born outside of Canada 66% say English is mother tongue Average no. of persons/family: 2.7 77% of homes are owned 88% at same address 1 year ago 63% at same address 5 years ago AGE DISTRIBUTION Ages Male Female PoCo % B.C. % 55% have some post-secondary education* * Percentage distribution based on published totals, both sexes. Source: Statistics Canada - 2016 Census. All 28,960 29,650 100%* 100%* 0-14 yrs 5,095 4,655 16% 15% 15-24 yrs 3,930 3,545 13% 11% 25-44 yrs 7,665 8,040 27% 26% 45-64 yrs 8,850 9,350 31% 30% 65+ yrs 3,420 4,060 13% 18% Median household income: $84,096 66% are employed* * Ages 15 and over Source: Statistics Canada, 2016 City of Port Coquitlam 11
2017 Highlights COMMUNITY REC COMPLEX Began construction on this exciting new community hub in the downtown, including: Construction fencing and groundbreaking Demolition of part of the Wilson Centre building Soil preparation work, including pile driving YEAR 2 OF POCO GRAND PRIX Attracted 7,500 people to the downtown with a day-long outdoor festival featuring pro cycling, entertainment and family fun. SUN VALLEY SPRAY PARK Expanded the spray zone, added water filtering and made other upgrades with the support of federal infrastructure funding. MURAL MOSAIC Worked with the community to paint 600 tiles and create a permanent mural reflecting community themes, installed at Leigh Square. TRANSPORTATION IMPROVEMENTS CANADA 150 Upgraded a 1.1-km stretch of Pitt River Road and McLean Avenue Improved active transportation such as bike lanes and sidewalks Celebrated with a day-long arts, music and nature festival in Leigh Square and Lions Park that attracted 9,000 people. NEW WEBSITE Updated the City website with a new modern look, better viewing on mobile devices, improved navigation and security, and other improvements. SUPPORTING THE DOWNTOWN Completed research and recommendations identifying opportunities to further develop the potential of the downtown. RECRUITMENT CAMPAIGN Kicked off the PoCo Works! campaign, focusing on what makes Port Coquitlam unique as a local government employer. UBCM AWARD: DISASTER PLANNING Won a Community Excellence Award from the Union of BC Municipalities for work helping the community and local businesses plan ahead to recover after a major disaster, including holding workshops and providing resources. 12 Annual Report 2017
City Council The City staff Boots on the Ground team volunteered at a water station at the 2017 Terry Fox Hometown Run alongside community volunteers. Giving Back Community Volunteers Many volunteers and organizations work hard to make our community a better place. Because of their efforts, Port Coquitlam is a safer, healthier and more complete community, with an abundance of PoCo Pride: that special combination of community spirit and pride that is unique to Port Coquitlam. The City of Port Coquitlam provides opportunities for citizens to volunteer in all aspects of civic life, from assisting with recreation programs to serving as citizen advisors to City Council. Our website, www.portcoquitlam.ca/volunteer, features volunteer opportunities and online registration. Each April during National Volunteer Week, we celebrate all volunteers in our city with a Volunteer Recognition Awards & Tribute and other events. City Volunteers We re proud of the volunteer work undertaken by City staff and Council members. Not a month goes by without some sort of office fundraiser, and many also volunteer in their spare time. Key 2017 activities: Firefighters raised $39,751 and volunteered more than 1,429 hours to support a variety of causes: $14,302 for prostate cancer research and men s health initiatives through Movember. $5,983 for the BC Professional Fire Fighters Burn Fund through Christmas tree chipping and the Canada Day salmon barbecue. $17,166 for Muscular Dystrophy Canada through a boot drive. $2,300 for the BC Burn Unit through a slow-pitch tournament beer garden and cook shack. Also volunteered for events supporting the Terry Fox Foundation, Fire Fighters Burn Fund, BC Children s Hospital, Camp Ignite and the City. The staff Week of Giving campaign raised $5,610.58 for the United Way and $9,361.42 for local charities through donations, pledges and a variety of activities. The staff Boots on the Ground team volunteered at events such as the PoCo Grand Prix and Terry Fox Hometown Run. Staff supported a coworker whose wife was seriously ill by donating 41 vacation days and raising more than $13,000 at a fundraiser. City of Port Coquitlam 13
Strategic Direction The City s policy, operations and financial decisions are guided by the Corporate Strategic Plan entitled Vision 2020 along with City Council s current priorities. Adopted in 2011, Vision 2020 outlines the community s vision for the future and was built on a foundation of core municipal principles, best practices and public consultation. Council also sets priorities each year that guide the budget and delivery of City services. Since 2013, Council has directed staff to focus on three priorities that grew from Vision 2020. Targeting a few priorities at a time enables the City to meet its goals more effectively. Go to www.portcoquitlam.ca/vision2020 for more information. VISION: Port Coquitlam is a happy, vibrant, safe community of healthy engaged residents and thriving businesses supported by sustainable resources and services. MISSION: We strive to do it right by researching, planning, building and executing well-balanced solutions. The work of the City s departments (described in Department Overviews, starting on page 17) is aligned with the following: Vision 2020 Strategic Outcomes Sustainable Future Addresses financial health, environmental health, social health and sustainable services. Sense of Community Addresses community spirit, inclusiveness and diversity, and community health. Economic Strength Addresses business strength, employment, access and transportation, and agricultural land. Community Well-being Addresses community safety, parks and natural areas, waste management and utility services. Strategic Service Delivery Addresses staff productivity and effectiveness, transparency and public confidence, and a healthy work environment. Council priorities Community Livability Projects including updating the Official Community Plan and Environmental Strategic Plan, implementing the Cultural Plan and Master Transportation Plan, supporting public safety, and strengthening relations with Kwikwetlem First Nation. Infrastructure Maximize the life of infrastructure assets (e.g. roads and buildings) and save for their replacement. Community Recreation Complex Plan and construct a new Community Recreation Complex on 15 acres of City land in the downtown that includes the Port Coquitlam Recreation Complex and former works yard. 14 Annual Report 2017
Letter of Transmittal 2580 Shaughnessy Street, Port Coquitlam BC, Canada, V3C 2A8 LETTER OF TRANSMITTAL June 1, 2018 Mayor and Council City of Port Coquitlam I am pleased to present the City s Financial Statements and Annual Report for the fiscal year ending December 31, 2017. Pursuant to Section 98 of the Community Charter, this document shares the City s accomplishments, activities and financial results for the past year and goals for the upcoming year. In keeping with the 2017 Annual Report theme Building Our Community, one of last year s key highlights was the long-awaited groundbreaking and beginning of construction of the Community Recreation Complex in the spring. To be completed in 2021, this community hub will bring new and enhanced amenities to our downtown. The project s balanced funding plan includes use of reserves, land sales revenue, federal contributions, a parcel tax from 2017 to 2020, phased-in property tax increases, and some borrowing. The City also issued building permits for projects with a record value of $219 million in 2017 (compared to $155 million in 2016), in part due to the Recreation Complex project and growth in the Dominion Triangle area. From a financial standpoint, the introduction of a two-year operating budget cycle, aligned with a two-year capital budget, was a significant change in 2017. The forward-looking approach ensures we plan for services and infrastructure in a sustainable way, and allows us to take advantage of market timing for capital project tendering. We continue to see the benefits of the new cloud-based Agresso Financial System, which has created an efficient electronic workflow and provides a rich source of data to facilitate strategic decision-making by staff and Council. Our organization s focus on continuous improvement was also maintained in 2017. In terms of the 2017 Annual Report, the preparation and presentation of the Financial Statements (Statements) and related information is the responsibility of the City. The Statements were prepared in accordance with Canadian Public Sector Accounting Standards. City Council ensures management fulfills its responsibilities for financial reporting, budgeting and internal controls by approving bylaws and policies, reviewing variance reports and financial statements, and having discussions with the City s auditors in a closed meeting of the Finance and Budget Committee. The audit firm of KPMG LLP, appointed by Council, has expressed its opinion that the Statements fairly present the financial position of the City as at December 31, 2017, and the results of 2017 operations are in accordance with Canadian Public Sector Accounting Standards. The City maintains a system of internal and administrative controls designed to provide reliable and accurate financial information and to ensure assets are appropriately accounted for and adequately safeguarded. Expenditures and revenues are analyzed regularly by departments and finance staff, who update Council on a quarterly basis. MUNICIPAL OVERVIEW The City provides a complete range of municipal services to residents and businesses, including police, fire, water, sewer, transportation, planning, recreation and other programs benefitting the community. Services cost-shared with other cities for cost-effective service delivery include emergency communications, fire dispatch and policing. The City relies on the Greater Vancouver Water District for our water supply, Greater Vancouver Sewerage and Drainage District for sewage disposal, and Metro Vancouver for co-ordination of common services with other cities. www.portcoquitlam.ca City of Port Coquitlam 15
Letter of Transmittal Overall, the City s work and finances in 2017 were guided by the Vision 2020 Corporate Strategic Plan and Council's current priorities: projects that improve community livability; maximizing the life of infrastructure assets and saving for their replacement; and planning and constructing the Community Recreation Complex. FINANCIAL OVERVIEW The City takes a long-term approach to its finances for a sustainable future, including setting aside sufficient funds to replace assets consumed in the year and saving for asset replacement. Steps taken to address future infrastructure funding challenges have included collecting funds in long-term reserves, and establishing a Finance & Budget Committee focused on policy direction to promote fiscal responsibility. The difference between 2017 revenues and 2017 expenses results in a 2017 annual surplus amount of $37 million (2016 - $16.1 million) and increases the City s accumulated surplus from the 2016 balance of $720.2 million up to $757.2 million. It is, however, important to note that not all of the City s accumulated surplus relates to funds that can be spent on future projects. Of the $757.2 million ending balance in 2017, only the $132.7 million related to restricted and unrestricted reserves is available for use. The remaining $624.5 million relates to the City s equity in tangible capital assets and other non-financial assets. Notes 13 through 15 of the consolidated financial statements provide additional breakdown of the various components of accumulated surplus. Contributing to the surplus was an increase in reserve balances due to changes in construction timing for the Community Recreation Complex, as well as decisions to delay a number of 2017 capital road projects to 2018 for optimal market timing. For this reason, the capital project focus in 2017 was primarily on essential maintenance, committed projects and multi-year initiatives. Annual operations remained constant. Fire and emergency services, police protection, water supply, sewer discharge, development, recreation, parks, culture and other primary and support services were delivered to the residents and businesses consistent with prior years, with minor adjustments for changes in demand and market conditions. Interest rates remain low and continue to affect City investment decisions and returns. As we look to the future, the challenge ahead is to continue to save for future infrastructure replacement, while keeping taxes sustainable and funding a new Community Recreation Complex and other emerging community needs. CONCLUSION City services provide the community with a quality of life that includes safety and protection, essential services, a sense of community and economic sustainability. A long-term approach to the City s finances will ensure these services will be available in the years to come. In addition, following Public Sector Accounting Board recommendations to quantify the long-term financial needs of the City, and taking steps to fund these needs in the City s reserves, has been an important step for the City in its goal to reach sustainability of our finances. Balancing affordability for the community today and tomorrow will continue to be our financial challenge. The annual financial statements will monitor our progress. Respectfully, Karen Grommada, CPA, CMA Director of Finance www.portcoquitlam.ca 16 Annual Report 2017
Department Overviews City of Port Coquitlam 17
Office of the Chief Administrative Officer The Chief Administrative Officer provides organizational leadership to all City staff. Key Responsibilities Direct and coordinate the activities of all departments. Assist Council to establish the City s vision, plans and priorities. Oversee the development of revenuegeneration initiatives and other strategic projects. Oversee the implementation of the City s vision, plans and priorities by: ensuring effective policies are in place and adhered to, and providing leadership that enables an engaged and productive municipal workforce. Annual Continuous Improvement Assessment savings identified $155,000 New revenue-generating commercial contracts 2 18 Annual Report 2017
STRATEGIC OUTCOME OR COUNCIL PRIORITY Community Recreation Complex Strategic Service Delivery Sustainable Future PERFORMANCE MEASURES 2017 Oversaw launch and first year of construction. Reviewed and made recommendations to enhance the City s Continuous Improvement Assessment program, which conducts in-depth reviews of City services. Participated in a union/management Training Adjudication Committee to begin reviewing each job description and associated training manual requirements. Worked with Human Resources to conduct a City-wide employee opinion survey. Worked with Human Resources to conclude collective bargaining with CUPE staff. Worked with Human Resources to implement a performance planning program for unionized supervisors. Completed revenue-generating commercial contracts for transit shelters and digital signage. Negotiated a contract with Canadian Pacific Railway to preserve the City s rights related to the Coast Meridian Overpass in the event of future land-use changes. Oversaw implementation of amended processes and increased analysis and oversight of financial transactions to achieve increased financial oversight. STRATEGIC OUTCOME OR COUNCIL PRIORITY Community Recreation Complex Sustainable Future GOALS 2018 Continue to oversee construction. Support the implementation of a land strategy for City-owned properties. Explore and act on ways to strengthen relationships with the Kwikwetlem First Nation. See www.portcoquitlam.ca/departments to learn more about City departments. City of Port Coquitlam 19
Corporate Support Corporate Support brings together services and functions that support the organization as a whole. Key Responsibilities Communications, legislative and administrative functions Bylaw enforcement (including community policing) Technology and online services Council meetings, City records and elections City land holdings Divisions Bylaw Services Communications & Administrative Services Community Policing Corporate Office Information Services Website visits 655,853 Business licences issued 3,734 More Stats & Facts Social media followers (Facebook, Twitter and Instagram): 18,761 E-Update subscribers: 1,947 Freedom of Information requests: 71 Bylaws processed: 48 IS customer support requests: 1,977 Desktop computers: 250 Mobile devices: 175 Dog licences issued: 4,756 Community Policing volunteer hours: 6,260 Community Police Office community interactions: 3,304 20 Annual Report 2017
STRATEGIC OUTCOME OR COUNCIL PRIORITY Community Well-being Sense of Community & Community Livability Strategic Service Delivery Community Recreation Complex PERFORMANCE MEASURES 2017 Updated bylaw to address aggressive dogs. Upgraded Emergency Operations Centre hardware. Enforced proper waste sorting and securing waste to keep bears away. Expanded Community Policing volunteer program, including more bicycle and foot patrols at events. Conducted graffiti audits and prevention activities. Worked with Recreation to begin development of branding and a marketing plan for recreation, arts and cultural services. Launched a secure new City website that better integrates with mobile devices and online services, and uses cost-effective open source software. Upgraded half of the City s Microsoft Server operating systems. Completed the move to fully electronic meeting agendas. Implemented mobile ticketing for bylaw enforcement. Completed a year-long Tempest system upgrade for property, tax, utilities, point-of-sale and licensing, as well as a complete user interface overhaul. Participated in and began to implement recommendations from the Continuous Improvement Assessment of business licensing. Engaged public in the project with streaming webcam, video updates and other website and social media outreach. STRATEGIC OUTCOME OR COUNCIL PRIORITY Strategic Service Delivery Community Well-being 2018 GOALS Develop and roll out an app to provide access to a variety of City services. Roll out new committee agenda software. Plan and conduct a municipal election for Council and the School Board. Develop new regulations for homeless camps in parks. Test and provide training related to the City s Crisis Communications Plan. Implement a smoking bylaw banning smoking of any type along trails, in parks and playgrounds, and in other public areas. See www.portcoquitlam.ca/departments to learn more about City departments. City of Port Coquitlam 21
Development Services Development Services strategically guides the growth and development of the community. Key Responsibilities Institute sustainable and integrated policies and regulations for land use and development. Provide guidance on land use and development matters. Ensure new developments and buildings meet applicable policies, codes and standards. Promote economic development. Liaise with the Kwikwetlem First Nation, Port Coquitlam Business Improvement Association and Tri-Cities Chamber of Commerce. Divisions Building (including Plumbing) Development Engineering Planning Building permit construction value $219 million * New dwelling units approved 246 More Stats & Facts Planning applications processed: 73 Benchmark development permit application review time: six months Value of development engineering works processed: $6.1 million Building permits for new construction: 338 * Includes $102 million for the Community Recreation Complex. 22 Annual Report 2017
STRATEGIC OUTCOME OR COUNCIL PRIORITY Sustainable Future & Community Livability Sustainable Future Economic Strength Community Recreation Complex STRATEGIC OUTCOME OR COUNCIL PRIORITY Sustainable Future & Community Livability Sustainable Future Economic Strength 2017 PERFORMANCE MEASURES Implemented new requirements for electric vehicle infrastructure. Consulted with the public on tree policies and regulations through a Let s Talk Trees campaign. Adopted a zoning bylaw amendment to allow coach houses and issued the City s first development permit for this new housing option. Processed building permits with a record construction value of $218.6 million, largely due to the $102-million Community Recreation Complex, substantial industrial development and replacement of Minnekhada Middle School. Completed the business licensing Continuous Improvement Assessment. Worked with a Downtown Advisory Group and consultant in developing the report Recommendations for a Downtown Action Plan. Improved guidelines and educational materials for new builders and developers. Obtained approval for an environmental conservation development permit for the complex. Oversaw land-use planning and development processes related to the private mixed-use portion of the project. 2018 GOALS Implement new policies and regulations to promote, plant and protect trees. Update the Environmental Strategic Plan. Oversee an assessment of underground wiring in the downtown. Revise the Building and Plumbing Bylaw and update job descriptions for building and plumbing officials, in line with Building Act changes. Adopt new policies and regulations to expand housing options, including opportunities for smaller lots and more duplexes in single-family areas, as well as an affordable housing strategy. Implement actions intended to promote a vibrant downtown. Develop a Northside Commercial Plan. See www.portcoquitlam.ca/departments to learn more about City departments. City of Port Coquitlam 23
Engineering & Public Works Engineering & Public Works provides and maintains essential municipal services and infrastructure. Key Responsibilities Plan and manage City infrastructure projects. Plan and operate the City transportation network. Maintain the PoCoMAP geographic information system. Collect garbage, recycling and green waste. Provide and maintain City parks, trails and open spaces. Manage the City fleet. Provide water, sewer and drainage services. Provide engineering customer services. Divisions Administration Capital Projects Infrastructure Planning Public Works (including streets, parks, fleet, and solid waste, sewer, water and drainage utilities) Total waste collection customers 18,953 PoCoMAP visits (public) 21,886 More Stats & Facts Public requests and inquiries: 5,886 Waste collection customers: Single-family units: 14,632 Multi-family units: 3,935 Institution or business: 386 Percentage of waste diverted from landfill: 66 Water supplied: 9.3 million cubic metres PoCo Waste-Line app registrants: 6,350 24 Annual Report 2017
STRATEGIC OUTCOME OR COUNCIL PRIORITY Community Recreation Complex Community Well-being Strategic Service Delivery Economic Strength Sustainable Future Sense of Community STRATEGIC OUTCOME OR COUNCIL PRIORITY Strategic Service Delivery Community Well-being Economic Strength Sustainable Future 2017 PERFORMANCE MEASURES Began the four-year construction of Community Recreation Complex and related improvements in downtown Port Coquitlam. Began construction of Blakeburn Lagoons Park, to transform two former waste settling ponds into a passive park and functioning wildlife habitat. Created a new traffic calming policy and procedure. Sold discounted rain barrels to the public to promote water conservation. Upgraded the Sun Valley Park spray zone with federal infrastructure funding. Changed waste collection zones to improve efficiency. Hosted more than 1,000 people at the annual Public Works Open House. Relaunched the Ambassador program to educate the community on proper waste sorting, securing waste from bears and water-use restrictions. Performed an efficiency review across all Parks sections. Upgraded a 1.1 km stretch of Pitt River Road and McLean Avenue, an important local transportation link, to arterial standards. Signed agreements that will bring 29 new and 20 upgraded bus shelters and additional transit benches to the City in 2018. Completed a variety of pedestrian and cycling enhancements, including the addition of 25 new bike racks and painting of bike lanes to improve safety. 2018 GOALS Upgrade Centennial outdoor pool for competition and community use. Begin a four-year program to update all streetlights to LED. Assess the current state of asset management and develop a strategy and policy. Develop a 10-year capital plan. Complete construction and open Blakeburn Lagoons Park, a new natural oasis and the largest addition to the City s parks network in decades. Complete extensive upgrades of neighbourhood roads, sidewalks and services. Work with Coquitlam on an inter-municipal road agreement. See www.portcoquitlam.ca/departments to learn more about City departments. City of Port Coquitlam 25
Finance Finance provides financial services to citizens, City departments and City Council. Key Responsibilities Provides financial planning, accounting, payroll, purchasing and revenue collection services. Administrates operating funds. Risk management (insurance and claims administration). Divisions Common Services Finance Services Accounting Financial Planning & Systems Payroll Purchasing Revenue Services 2017 operating budget $92.8 million Years winning financial reporting award* 12 More Stats & Facts Billing and collection value: $84 million Tax customers: 20,784 MyPortCoquitlam registrants: 13,546 Business Licences: 130 Development Services: 156 Dog Licences: 279 Property Taxes: 1,751 Utilities (Water and Sewer): 1,759 Electronic Home Owner Grants: 9,471 MyPortCoquitlam change from 2016: +16% * From the Government Finance Officers Association 26 Annual Report 2017
STRATEGIC OUTCOME OR COUNCIL PRIORITY Community Recreation Complex Sustainable Future Sustainable Future & Strategic Service Delivery 2017 PERFORMANCE MEASURES Received a certificate of approval for the Community Recreation Complex Loan Authorization Bylaw from the province. Implemented the City s first two-year budget. Received a Canadian Award for Financial Reporting for the 2016 Annual Report. Continued to develop and support enhanced financial functions through implementation of the new Agresso cloud-based financial system. Took part in a year-long Tempest system upgrade for property, tax, utilities, point-of-sale and licensing. Implemented the City s new Living Wage policy in conjunction with Human Resources. Completed a review of the Stores operations. Conducted significant goods and/or services procurement solicitations, including a Request for Proposals and contract negotiations for organics collection and a new Quint/Ladder fire truck. Implemented amended processes and increased analysis and oversight of financial transactions to achieve increased financial oversight. STRATEGIC OUTCOME OR COUNCIL PRIORITY Infrastructure & Sustainable Future Sustainable Future 2018 GOALS Work with other departments on the development of a City-wide asset management plan and 10-year capital plan. Update the City Purchasing Policy and complete the development of purchasing tools for City departments. Work with Information Services to implement the timesheets feature for the Agresso cloud-based financial system. Meet requirements to receive financial reporting award from the Government Finance Officers Association. See www.portcoquitlam.ca/departments to learn more about City departments. City of Port Coquitlam 27
Fire & Emergency Services Fire & Emergency Services provides for the preservation of life, property and the environment in Port Coquitlam. Key Responsibilities Respond to fire, medical and other emergencies. Conduct fire bylaw inspections and fire investigations. Provide public education programs. Develop and implement the City s Operational Emergency Response Plan. Deliver public emergency preparedness education and awareness. Divisions Administration Emergency Preparedness Fire Suppression Training Protective Services & Public Education Total calls for service 4,066 Total firefighters 70 More Stats & Facts Firefighters per capita: 1:821 Total calls for service: 4,066 Fire calls: 185 (2%) Hazardous materials calls: 51 (1%) Medical calls: 2,044 (50%) Motor vehicle accidents: 317 (8%) Public service/assist: 223 (5%) Miscellaneous (34%) Fire bylaw inspections: 2,516 Emergency preparedness course attendees: 970 Emergency preparedness volunteer hours: 2,466 28 Annual Report 2017
STRATEGIC OUTCOME OR COUNCIL PRIORITY Community Well-being Community Well-being & Sustainable Future STRATEGIC OUTCOME OR COUNCIL PRIORITY Community Well-being Community Well-being & Sustainable Future PERFORMANCE MEASURES 2017 Won the Community Excellence Award from the Union of BC Municipalities for disaster recovery and business continuity outreach and resources. Added five new firefighters to keep up with increasing call volume and training requirements. Conducted Requests for Proposals and ordered a new medic vehicle and replacement Quint/Ladder truck. Implemented a firefighter health and wellness initiative, including testing and training. Created an Acting Public Education Officer position to expand the department s public education and community safety capacity. Started the process for capital replacement of the department s stock of selfcontained breathing apparatus (SCBA). Developed a business case for moving fire radio communications to the regional E-Comm system, for increased efficiency and enhanced safety for firefighters and the public. Developed an integration plan to achieve increased Emergency Operations Centre staffing. Restructured the Response and Resource Allocation Model for implementation in 2019. 2018 GOALS Develop a community risk-reduction program for residential properties, with a focus on high-risk clients and properties. Develop a business continuity plan to assist local business in the event of an emergency. Move fire radio communications to the regional E-Comm system. Review the current emergency communication system and evaluate alignment strategies to address multi-jurisdictional compatibility and responder safety. Complete a detailed review of the current bylaw inspection model to create efficiencies and align with the new Fire Safety Act. See www.portcoquitlam.ca/departments to learn more about City departments. City of Port Coquitlam 29
Human Resources Human Resources serves both internal and external customers by providing specialized advice and assistance in all facets of people management. Key Responsibilities Champion City-wide initiatives that build on a positive and inclusive organizational culture, which places employees in the best position to provide excellent support and service to citizens and the business community. Recruit City staff and ensure succession planning. Manage the City s labour relations. Coordinate the City s occupational health and safety program. Plan and implement staff training and development. Administer benefits, attendance and disability management programs. Total City employees 585 Job applicants processed 4,200+ More Stats & Facts Employees: 291 full-time, 77 part-time, 217 casual Average employee age: Casuals: 30 years Part-time: 34 years Full-time: 45 years Fire suppression: 37 years Fire non-suppression: 26 years Exempt (non-union): 48 years Average length of service: 8 years External hires: 87 Internal appointments: 104 30 Annual Report 2017
STRATEGIC OUTCOME OR COUNCIL PRIORITY Strategic Service Delivery 2017 PERFORMANCE MEASURES Implemented a PoCo Works! strategy to attract new talent to the City, focusing on what makes Port Coquitlam unique as a local government employer. Completed a review of the Attendance Management Program and industry best practices for reducing absenteeism. Conducted a City-wide employee opinion survey. Implemented performance planning for CUPE supervisors. Implemented a supervisory skills program with Public Works. Implemented a successful inclusive employment opportunity pilot. Concluded collective bargaining with CUPE staff. Captured photos of all employees and established a process for new employee identification. STRATEGIC OUTCOME OR COUNCIL PRIORITY Sustainable Future Strategic Service Delivery 2018 GOALS Work with other departments to implement amended processes and increased analysis and oversight of financial transactions to achieve increased financial oversight. Implement Attendance Management Program recommendations for reducing absenteeism. Analyze and report out on results of 2017 employee opinion survey. Support the development of a staffing plan for the new Community Recreation Complex. See www.portcoquitlam.ca/departments to learn more about City departments. City of Port Coquitlam 31
Recreation The Recreation Department provides inclusive recreation and culture experiences to support a healthy engaged community. Key Responsibilities Provide recreation, sport, fitness, social, arts and culture programs, services and special events. Coordinate volunteer opportunities and training for youth, adults and seniors. Manage reservations for City parks and facilities. Support community organizations aligned with department services. Administer community grant programs. Manage building maintenance and lifecycle management for 26 City facilities. Act as the City s Liaison for Terry Fox Library. Divisions Recreation Services Cultural Development & Community Services Facility Services Major event attendance* 135,000 Online program registration 57% More Stats & Facts Courses offered: 5,934 Program registrations: 26,995 Program hours provided: 31,943 Drop-in program participants: 133,938 Active volunteers: 468 Recreation facility memberships sold: 8,644 Wilson Centre memberships sold: 1,130 Library items borrowed**: 293,644 New library cards issued***: 2,146 Active library cards***: 19,744 * ** *** Reflects 13 major City led and supported festivals/events Does not include e-books Terry Fox identified as home library 32 Annual Report 2017
STRATEGIC OUTCOME OR COUNCIL PRIORITY Community Recreation Complex Community Livability & Sense of Community Economic Strength & Sense of Community Sense of Community Sustainable Future STRATEGIC OUTCOME OR COUNCIL PRIORITY Community Recreation Complex Community Livability & Sense of Community Sense of Community Sustainable Future 2017 PERFORMANCE MEASURES Maintained facility operations during construction and promoted programs through advertising, a well-attended community barbecue, and other means. Increased activity in Leigh Square and established a Cultural Roundtable as part of the implementation of the new Cultural Plan. Held the second annual PoCo Grand Prix, attracting 7,500 attendees (150% increase from 2016) and broadening participation by local businesses. Expanded the Pianos in the Street program from one to four pianos. Received $123,500 in provincial and federal grants for Canada 150 events and projects, and $60,000 in federal funding for student summer jobs. Implemented a new facility staff structure, combining technical and recreational maintenance. Completed a review of aquatic service levels and a Continuous improvement Assessment of registered recreation programs. Developed new recreation facility emergency procedures and trained staff. Implemented in-house janitorial services for greater efficiency. Compiled a five-year facility lifecycle plan for the City s Asset Management Plan. 2018 GOALS Continue to ensure facility operations are maintained, reduce public impact and engage stakeholders; transfer services upon completion of phase one. Transition the Festival Work Group into a Festival Committee. Complete a Recreation Marketing Plan, including a new department logo. Continue to grow and develop the Cultural Roundtable. Plan a Terry Fox exhibit for the new Community Recreation Complex in consultation with the Fox family and project developer. Explore locations and partnership opportunities for a new community garden. Implement and provide staff training for a new online facility booking module. Review and implement recommendations for expanding front counter service. See www.portcoquitlam.ca/departments to learn more about City departments. City of Port Coquitlam 33
RCMP Coquitlam RCMP serves more than 200,000 residents across Anmore, Belcarra, Coquitlam and Port Coquitlam. Key Responsibilities Reduce and prevent crime and protect citizens and property through efficient and effective response-to-call, enforcement and investigations as well as strategic outreach and education initiatives. Identify and address emerging public safety issues. Work in partnership with the City and citizens to ensure Port Coquitlam is a healthy, vibrant and safe community. Divisions RCMP Public Safety Building Total calls for service 41,083 Total police officers 236 Crime Types 2016 2017 Change Person Crimes 1 901 856-5% Property Crimes 2 6,023 5,218-13% Other (Breach of Probation) 510 483-5% Drugs 3 264 291 +10% Traffic 4 2,427 2,646 +9% 1 Abduction, assault, attempted murder, murder (1st and 2nd degree), robbery, and sexual offences. 2 Arson, break and enter, fraud (including identity theft), mischief, possession of stolen property, theft, and theft of/from vehicle. 3 Illegal marijuana grow operations, and cocaine heroin and methamphetamine possession and trafficking. 4 Collision (fatal, injury and property damage), dangerous operation, impaired operation (alcohol/drugs), prohibited driver, roadside prohibitions and immediate roadside prohibitions. Data Notes and Qualifiers: Data extracted in March 2018; in cases of discrepancy, the most current data will take precedence. Statistics are for the Coquitlam RCMP jurisdiction (Coquitlam, Port Coquitlam, Anmore and Belcarra). Criminal Code offence data are compiled using select PRIME BC files and are not comprehensive. All data is subject to change based on investigational factors and records data quality processes. Data is collected using most serious offence scoring, consistent with Statistics Canada and BC Justice Ministry (Police Services Division) data collection practices. Collision data is not complete as it only includes files where police attended and not all files reported to the Insurance Corporation of British Columbia (ICBC). 34 Annual Report 2017
STRATEGIC OUTCOME OR COUNCIL PRIORITY Community Well-being & Strategic Service Delivery Sense of Community & Community Well-being Community Well-being 2017 PERFORMANCE MEASURES Added three additional officers to Port Coquitlam s Uniformed Crime Reduction Unit, which works to increase police visibility and target crime hotspots. Continued to work to increase positive interactions between Coquitlam RCMP and the citizens it serves. Participated in anti-graffiti initiatives in Port Coquitlam in conjunction with TELUS and School District #43. Took part in Port Coquitlam events such as the May Day Parade, Downtown Car Show and the Remembrance Day service. Engaged the community online with 843 Facebook posts, 1,359 tweets and 136 website posts. Continued to focus on reducing criminal activity related to the three tenets of crime reduction prolific offenders, hotspots, and crime causation factors. Continued special projects including distracted driving, pedestrian safety, crime prevention and anti-graffiti. STRATEGIC OUTCOME OR COUNCIL PRIORITY Community Well-being Sustainable Future & Sense of Community Strategic Service Delivery 2018 GOALS Communicate effectively with citizens about policing and public safety issues. Increase positive interactions with the citizens of Port Coquitlam. Increase participation in police volunteer programs. Continue to focus on the three tenets of crime reduction. Reduce collisions related to high-risk groups and contributing factors. Reduce the impact of high volume and high risk non-crime calls on police resources. See www.portcoquitlam.ca/policing or www.coquitlam.rcmp.ca to learn more.. City of Port Coquitlam 35
Thousands of people gathered in Leigh Square and Lion s Park for Port Coquitlam s Canada 150 celebration: a day-long festival of art, music and nature. 36 Annual Report 2017
Financial Section City of Port Coquitlam 37
Auditors Report to Mayor and Council Management's Responsibility for the Consolidated Financial Statements Auditors Responsibility 38 Annual Report 2017
Auditors Report to Mayor and Council Corporation of the City of Port Coquitlam Page 2 Opinion City of Port Coquitlam 39
Consolidated Statement of Financial Position AS AT DECEMBER 31, 2017 2017 2016 FINANCIAL ASSETS Cash and cash equivalents $ 3,889,049 $ 7,535,890 Investments Note 3 174,146,606 165,938,783 Accounts and other receivables Note 4 23,551,707 7,988,055 Due from other governments Note 5 626,471 287,825 202,213,833 181,750,553 LIABILITIES Accounts payable and accrued liabilities Note 6 12,303,997 12,750,321 Deferred revenues Note 7 11,775,416 10,576,583 Deposits Note 8 9,730,147 6,556,997 Development cost charges Note 9 32,884,604 32,317,681 Post-employment future benefits and Note 10 2,743,000 2,737,000 compensated absences Debt Note 11 21,080,650 21,672,308 90,517,814 86,610,890 NET FINANCIAL ASSETS 111,696,019 95,139,663 NON-FINANCIAL ASSETS Tangible capital assets Note 12 645,103,796 624,636,491 Inventories 294,471 329,998 Prepaid expenses 157,556 94,355 645,555,823 625,060,844 ACCUMULATED SURPLUS Note 13 $ 757,251,842 $ 720,200,507 Commitments and Contingencies Note 17 See accompanying Notes to the Consolidated Financial Statements John Leeburn, MBA Chief Administrative Officer Karen Grommada, CPA, CMA Director of Finance 40 Annual Report 2017
Consolidated Statement of Operations FOR THE YEAR ENDED DECEMBER 31, 2017 REVENUES 2017 Budget (Notes 2c and 20) 2017 2016 Taxation and other levies Note 19 $ 64,542,200 64,792,961 $ 61,519,930 Utility charges 22,063,400 22,591,213 19,250,925 Sale of services 5,021,600 6,696,583 9,021,148 Contributions 11,211,800 7,958,722 6,473,703 Permits and licences 1,848,900 2,893,560 2,827,534 Investment income 1,740,000 2,991,687 2,717,309 Penalties and fines 398,400 449,722 438,730 Other revenue 747,800 1,166,590 1,407,267 Gain on disposals and write-downs Note 4a - 16,922,586 230,593 EXPENSES $ 107,574,100 $ 126,463,624 $ 103,887,139 General government $9,442,160 $9,176,563 $8,855,449 Engineering and public works 17,838,915 16,670,762 17,333,893 Recreation 13,661,651 12,807,567 12,615,721 Police services 15,518,484 14,537,292 14,220,414 Fire and emergency services 11,775,781 11,637,604 11,135,010 Development services 3,331,178 3,116,819 2,884,493 Solid waste operations 3,645,554 3,546,218 3,351,827 Water operations 10,465,222 10,255,407 10,171,523 Sanitary sewer operations 8,030,555 7,664,057 7,247,976 $ 93,709,500 $ 89,412,289 $ 87,816,306 ANNUAL SURPLUS $13,864,600 $37,051,335 $16,070,833 ACCUMULATED SURPLUS, beginning of year 720,200,507 720,200,507 704,129,674 ACCUMULATED SURPLUS, end of year $ 734,065,107 $ 757,251,842 $ 720,200,507 See accompanying Notes to the Consolidated Financial Statements City of Port Coquitlam 41
Consolidated Statement of Cash Flows FOR THE YEAR ENDED DECEMBER 31, 2017 CASH PROVIDED (USED) BY: 2017 2016 Annual surplus $ 37,051,335 $ 16,070,833 Items not involving cash: Developer contributions of tangible capital assets (716,211) (4,072,926) Amortization 11,449,554 11,831,408 Gain on disposal of tangible capital assets (772,586) (230,593) Non-cash post-employment future benefits and compensated absences 6,000 (178,000) Change in non-cash operating assets and liabilities Accounts receivable (15,563,652) (847,266) Due from other governments (338,646) 22,577 Accounts payable and accrued liabilities (446,324) 2,619,298 Deferred revenues 1,198,833 332,517 Deposits 3,173,150 337,400 Development cost charges 566,923 4,401,650 Inventories 35,527 254,141 Prepaid expenses (63,201) 20,829 Cash provided by operating activities 35,580,702 30,561,868 FINANCING ACTIVITIES Debt repayment (591,658) (568,972) Cash used in financing activities (591,658) (568,972) CAPITAL ACTIVITIES Cash used to acquire tangible capital assets (31,817,718) (11,295,897) Cash received from disposals of tangible capital assets 1,389,656 3,616,922 Cash used in capital activities (30,428,062) (7,678,975) INVESTING ACTIVITIES Purchase of investments (125,056,500) (156,000,000) Redemption of investments 116,848,677 135,753,961 Cash used in investing activities (8,207,823) (20,246,039) INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (3,646,841) 2,067,882 CASH AND CASH EQUIVALENTS, beginning of year 7,535,890 5,468,008 CASH AND CASH EQUIVALENTS, end of year $ 3,889,049 $ 7,535,890 Non-cash transactions Non-cash gain on land sale (Note 4(a)) $ 16,150,000 See accompanying Notes to the Consolidated Financial Statements 42 Annual Report 2017
Consolidated Statement of Change in Net Financial Assets FOR THE YEAR ENDED DECEMBER 31, 2017 2017 Budget (Notes 2c and 20) 2017 2016 Annual surplus $13,864,600 $37,051,335 $16,070,833 Acquisition of tangible capital assets (70,984,600) (31,817,718) (11,295,897) Developer contributions of tangible capital assets (1,000,000) (716,211) (4,072,926) Amortization of tangible capital assets 13,000,000 11,449,554 11,831,408 Gain on disposal of tangible capital assets - (16,922,586) (230,593) Proceeds on disposal of tangible capital assets - 17,539,656 3,616,922 Use of inventories - 35,527 254,141 Use (increase) of prepaid expenses - (63,201) 20,829 INCREASE IN NET FINANCIAL ASSETS (45,120,000) 16,556,356 16,194,717 NET FINANCIAL ASSETS, beginning of year 95,139,663 95,139,663 78,944,946 NET FINANCIAL ASSETS, end of year $50,019,663 $111,696,019 $95,139,663 See accompanying Notes to the Consolidated Financial Statements City of Port Coquitlam 43
Notes to the Consolidated Financial Statements YEAR ENDED DECEMBER 31, 2017 1. Operations The Corporation of the City of Port Coquitlam (the City ) is incorporated under the Local Government Act of British Columbia. The City s principal activities include the provision of local government services to residents of the incorporated area. These include administrative, protective, transportation, environmental, recreational, water and sanitary sewer services. 2. Significant Accounting Policies The consolidated financial statements of the City are prepared in accordance with Canadian Public Sector Accounting Standards as prescribed by the Public Sector Accounting Board ( PSAB ) of the Chartered Professional Accountants of Canada. a. Basis of Presentation The consolidated financial statements comprise the City s General, Water, Sewer and Reserve funds and the Port Coquitlam Community Foundation. All inter-fund and inter-entity balances have been eliminated. Under the Community Charter, City Council may, by bylaw, establish reserve funds for specified purposes: (i) Internally restricted reserves are in accordance with City policy and with bylaws adopted by Council pursuant to the Community Charter. The policy and bylaws define the funding source for each reserve and their usage. (ii) Statutorily restricted reserves are reserves restricted by the provincial government in accordance with the Community Charter. The legislation defines the funding source for each reserve and their usage. Trust funds are those that are administered for certain beneficiaries. In accordance with PSAB recommendations, trust funds are not included in the City s consolidated financial statements. Trust funds administered by the City are presented in Note 18. b. Basis of Accounting The City follows the accrual method of accounting for revenues and expenses. Revenues are recognized in the year in which they are earned and measurable. Expenses are recognized as they are incurred and measurable as a result of receipt of goods and services and/or the creation of a legal obligation to pay. c. Budget Information The budget information reported in the consolidated statement of operations and the consolidated statement of change in net financial assets reflects the 2017 Financial Plan Bylaw adopted by City Council on May 4, 2017. d. Cash and Cash Equivalents Cash and cash equivalents consist of cash, highly liquid money market investments and investments with maturities of less than 90 days at acquisition. e. Investments Investments are recorded at cost, adjusted for amortization of premiums or discounts. Provisions for losses are recorded when they are considered to be other than temporary. f. Revenue recognition Taxes are recorded at estimated amounts when they meet the definition of an asset, they are authorized and the taxable event occurs. Levies imposed by other taxing authorities are not included as taxes for municipal purposes. British Columbia Assessment Authority s appeal process may adjust taxes by way of supplementary roll adjustments. These adjustments are recognized at the time they are assigned. 44 Annual Report 2017
Notes to the Consolidated Financial Statements g. Deferred Revenue Deferred revenue consists of property taxes, utilities, and recreation program fees paid in advance for services yet to be provided. The City defers amounts collected from permits, licences, and other fees and recognizes the amount as revenue in the year in which related inspections are performed or other related expenditures are incurred. h. Deposits Deposits represent cash collected by the City as security against work performed by property developers. The security is returned to the developer upon satisfactory completion of the work, or recognized into revenue if the work is not performed in accordance with the applicable bylaws. i. Development Cost Charges Development cost charges, collected to pay for capital projects due to be developed, are deferred upon receipt and are recognized as revenue when the capital costs for which they were collected are incurred. j. Post-employment Future Benefits and Compensated Absences The City and its employees make contributions to the Municipal Pension Plan. As this plan is a multi-employer plan, contributions are expensed as incurred. Post-employment future benefits and compensated absences also accrue to City employees. Liabilities related to these benefits are actuarially determined based on service and best estimates of retirement ages and expected future salary and wage increases. Liabilities under these benefits plans are accrued based on projected benefits as the employees render services necessary to earn the future benefits. k. Debt Debt is recorded in the consolidated financial statements net of sinking fund assets. l. Non-financial Assets Non-financial assets are not available to discharge existing liabilities and are held for use in the provision of services. They are not intended for sale in the ordinary course of operations. Tangible Capital Assets Tangible capital assets are recorded at cost which includes amounts that are directly attributable to acquisition, construction, development or betterment of the asset. The cost, less residual value, is amortized on a straight line basis over the asset s useful life as follows: MAJOR ASSET CATEGORY USEFUL LIFE MAJOR ASSET CATEGORY USEFUL LIFE Land Not amortized Drainage Infrastructure 25 to 100 years Parks Infrastructure 3 to 100 years Land Improvements 45 to 100 years Vehicles, Machinery & Equipment 5 to 25 years Water Infrastructure 25 to 80 years Transportation Infrastructure 10 to 100 years Sanitary Infrastructure 25 to 100 years Buildings 20 to 70 years Amortization begins once the asset is in use and ends when the asset is disposed or decommissioned. Assets under construction are not amortized until the asset is available for productive use. Tangible capital assets received as contributions are recorded at their fair value at the date of receipt and are also recorded as revenue. Interest is capitalized whenever external debt is issued to finance the construction of tangible capital assets. Leases, which transfer substantially all of the benefits and risks incidental to ownership of property, are accounted for as leased tangible capital assets. All other leases are accounted for as operating leases and the related payments are charged to expenses as incurred. Natural resources, works of art and historic assets are not recorded as assets in these consolidated financial statements. Inventories Inventories held for consumption or resale are recorded at the lower of cost and replacement cost. City of Port Coquitlam 45
Notes to the Consolidated Financial Statements m. Government Transfers Restricted transfers from governments are deferred and recognized as revenue as the related expenditures are incurred or the stipulations in the related agreement are met. Unrestricted transfers are recognized as revenue when received or if the amount to be received can be reasonably estimated and collection is reasonably assured. n. Liabilities for Contaminated Sites Contaminated sites are a result of contamination being introduced into air, soil, water or sediment of a chemical, organic, radioactive material or live organism that exceeds an environmental standard. Liabilities are recorded net of any expected recoveries. A liability for remediation of contaminated sites is recognized when a site is not in productive use and the following criteria are met: i. An environmental standard exists; ii. Contamination exceeds the environmental standards; iii. The City is directly responsible or accepts responsibility; iv. It is expected that future economic benefits will be given up; and v. A reasonable estimate of the amount can be made. The liability is recognized as management s estimate of the cost of post-remediation including operation, maintenance, and monitoring that are an integral part of the remediation strategy for a contaminated site. o. Use of Estimates The preparation of consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Significant areas requiring the use of management estimates relate to the determination of post-employment future benefits, allowance for doubtful accounts receivable, provision for contingencies and liability for contaminated sites, valuation of contributed tangible capital assets, and useful lives of tangible capital assets. Actual results may differ from management s estimates as additional information becomes available. Adjustments, if any, will be reflected in the consolidated financial statements in the period that the change in estimate is made, as well as in the period of settlement if the amount is different. p. Segment Disclosure A segment is defined as a distinguishable activity or group of activities of a government for which it is appropriate to separately report financial information to achieve the objectives of the standard. Financial information is presented in segmented format in Note 21. 3. Investments Investments have maturity dates of more than 90 days at acquisition and include term deposits in credit unions and deposits with the Municipal Finance Authority. Short-term deposits include term deposits in credit unions guaranteed by the Province of BC with varying maturity dates from January, 2018 to December, 2018 and have rates of return ranging from 1.60% to 2.31% (2016-1.65% to 2.07%). The carrying value of the Municipal Finance Authority Intermediate Fund at December 31 2017 was $6,088,106 (2016 - $5,938,783) and the market value at December 31, 2017 was $5,947,656 (2016 - $5,901,367). 2017 2016 Short-term deposits $ 168,058,500 $ 160,000,000 Municipal Finance Authority Intermediate Fund 6,088,106 5,938,783 $ 174,146,606 $ 165,938,783 46 Annual Report 2017
Notes to the Consolidated Financial Statements 4. Accounts Receivable 2017 2016 Land sale receivable (a) $ 12,245,162 $ - Accounts receivable 4,663,174 1,120,756 Property tax and utility receivable 2,161,474 2,360,428 Development cost charges receivable 2,074,508 2,510,646 Other 2,407,389 1,996,225 $ 23,551,707 $ 7,988,055 a. Land sale receivable In 2017, the City sold land to a developer for $17,275,000. The City also entered into an agreement with a contractor to construct the recreation complex situated on adjacent land. As per the land purchase and sale agreement, the payments remitted by the developer for the land sale are to be offset against progress payments payable by the City for the recreation complex construction. In 2017, the City received a total of $5,029,838 of the land sale proceeds in the form of cash in the amount of $1,125,000 and offsets against progress payments payable in the amount of $3,904,838. The remaining land sale proceeds will be made in installments as follows: Current $ 95,162 July 29, 2018 4,000,000 July 29, 2019 6,000,000 July 29, 2020 2,150,000 $ 12,245,162 The land sale receivable is non-interest bearing. 5. Due from Other Governments 2017 2016 Government of Canada $ 545,596 $ 229,952 Province of British Columbia 80,875 57,747 Other governments - 126 $ 626,471 $ 287,825 6. Accounts Payable and Accrued Liabilities 2017 2016 Accounts payable and accrued liabilities $ 7,997,496 $ 9,834,004 Wages and benefits payable 2,065,554 2,600,561 Statutory holdbacks 2,046,933 309,287 Due to other governments 194,014 6,469 $ 12,303,997 $ 12,750,321 City of Port Coquitlam 47
Notes to the Consolidated Financial Statements 7. Deferred Revenues Deferred revenues relate to amounts received in advance of services performed. December 31, 2016 Additions Revenue earned December 31, 2017 Property taxes and utilities $ 7,637,519 $ 13,136,788 $ (13,253,354) $ 7,520,953 Programs and services 1,957,138 2,363,610 (2,096,350) 2,224,398 Other 981,926 1,819,729 (771,590) 2,030,065 $ 10,576,583 $ 17,320,127 $ (16,121,294) $ 11,775,416 8. Deposits Deposits represent cash collected as security under the following bylaws: Port Coquitlam Highway Bylaw, 1984 No. 2011; Subdivision Servicing Bylaw 1987 No. 2241; and City of Port Coquitlam Soil Removal and Deposit Bylaw 2002 No. 3331. 9. Development Cost Charges AREA 1 December 31, 2016 Third Party Contributions Interest Allocation Capital Expenditures December 31, 2017 Drainage $ 4,144,040 $ 50,634 $ 80,886 $ - $ 4,275,560 Transportation 9,338,498 350,689 180,617 (407,395) 9,462,409 Parks 3,698,998 261,762 73,895 (41,753) 3,992,902 Water 4,715,945 22,582 90,117 (164,008) 4,664,636 Sanitary 1,480,663 12,927 28,850-1,522,440 AREA 2 Drainage 24,672 131,831 1,757-158,260 Transportation 4,133,566 152,488 81,670-4,367,724 Parks 1,523,960 13,078 25,472 (435,033) 1,127,477 Water 1,378,280 28,623 27,016-1,433,919 Sanitary 856,184 7,551 16,683-880,418 Parks interest 1,022,875-19,422 (43,438) 998,859 $ 32,317,681 $ 1,032,165 $ 626,385 $ (1,091,627) $ 32,884,604 10. Post-Employment Future Benefits and Compensated Absences The City provides sick leave and retirement benefits to its employees. Eligible employees accumulate sick leave entitlement on a monthly basis and can only use this entitlement for paid time off under certain circumstances. Retirement benefits represent the City s share of the cost to provide eligible employees with severance pay upon retirement. The amount recorded for these benefits is based on an actuarial valuation done by an independent firm of actuaries using a projected benefit actuarial valuation method pro-rated on services. The most recent actuarial valuation of the City s future benefits was completed as at December 31, 2017. Note 10 continued on next page 48 Annual Report 2017
Notes to the Consolidated Financial Statements 10. Post-Employment Future Benefits and Compensated Absences (continued) Information regarding the City s obligations for these benefits is as follows: Non-vested Sick Leave Severance 2017 2016 Accrued benefit obligation, beginning of year $ 637,000 $ 2,785,000 $ 3,422,000 $ 3,539,000 Service cost 40,000 163,000 203,000 202,000 Interest cost 21,000 89,000 110,000 107,000 Benefit payments (57,000) (357,000) (414,000) (584,000) Amortization of net actuarial losses 46,000 65,000 111,000 158,000 Accrued benefit obligation, end of year 687,000 2,745,000 3,432,000 3,422,000 Unamortized actuarial loss (343,000) (346,000) (689,000) (685,000) Accrued benefit liability $ 344,000 $ 2,399,000 $ 2,743,000 $ 2,737,000 The unamortized actuarial loss is amortized over a period equal to the employees average remaining service lifetime. The significant actuarial assumptions adopted in measuring the City s accrued benefit liability are as follows: 2017 2016 Discount rates 2.90% 3.20% Expected future inflation rates 2.50% 2.50% Expected compensation increases 2.58% - 4.63% 2.58% - 4.63% Expected average remaining service lifetime 10 years 10 years 11. Debt The City incurs debt through the Municipal Finance Authority (MFA) in accordance with the Community Charter to finance certain capital expenditures. Sinking fund assets managed by the MFA are netted against related debt. The gross amount of debt and the amount of sinking fund assets available to retire the debt are as follows: Coast Meridian Overpass, Bylaw 3611, 4.13%, due 2039 2017 2016 Gross Debt Sinking Fund Asset Net Debt Net Debt $ 25,000,000 $ 3,919,350 $ 21,080,650 $ 21,672,308 Future payments on net outstanding debt over the next five years and thereafter are paid from the General Fund and are as follows: 2018 $ 1,478,252 The City paid $886,594, net of earnings on debt reserve deposit, in interest on debt during the year (2016 - $909,280). 2019 1,478,252 2020 1,478,252 2021 1,478,252 2022 1,478,252 Thereafter 25,130,292 Principal and interest payments 32,521,552 Amount representing interest 11,440,902 Debt principal repayments $ 21,080,650 The City has available a revolving facility up to a maximum of $5,000,000 which bears interest at an annual rate of bank prime per annum. The City provided security for the facility by way of a general security agreement. No amounts are outstanding under the banking facility. City of Port Coquitlam 49
Notes to the Consolidated Financial Statements 12. Tangible Capital Assets a. Assets Under Construction: Assets under construction having a value of $28,658,444 (2016 - $4,646,266) have not been amortized. Amortization of these assets will commence when the assets are put into service. b. Contributed Tangible Capital Assets: Contributed tangible capital assets (including transportation, drainage, water and sanitary sewer assets) have been recognized at fair market value at the date of contribution. The value of contributed assets received during the year is $716,211 (2016 - $4,072,926). Please note: Note 12 spans two pages. AS AT DECEMBER 31, 2017 Parks Infrastructure Vehicles, Machinery, Equipment Transportation Infrastructure Land COST Opening balance $ 223,312,159 $ 20,876,065 $ 24,685,739 $ 262,268,294 Add: Additions 1,654,519 93,090 507,297 122,598 Add/(Deduct): Transfers from AUC 26,108 43,957 184,863 2,380,775 Less: Disposals (219,838) (690,267) (109,000) (695,192) Closing balance 224,772,948 20,322,845 25,268,899 264,076,475 ACCUMULATED AMORTIZATION Opening balance - 11,207,620 14,072,621 58,395,136 Add: Amortization - 725,374 1,497,300 4,341,042 Less: Accumulated amortization on disposals - (688,696) (109,000) (496,405) Closing balance - 11,244,298 15,460,921 62,239,773 Net book value as at December 31, 2017 $ 224,772,948 $ 9,078,547 $ 9,807,978 $ 201,836,702 AS AT DECEMBER 31, 2016 Parks Infrastructure Vehicles, Machinery, Equipment Transportation Infrastructure COST Land Opening balance $ 219,696,864 $ 22,873,303 $ 24,796,882 $ 259,771,827 Add: Additions 5,928,385 101,159 1,220,800 1,782,076 Add/(Deduct): Transfers from AUC - 2,364,259 712,212 721,544 Less: Disposals (2,313,090) (4,462,656) (2,044,155) (7,153) Closing balance 223,312,159 20,876,065 24,685,739 262,268,294 ACCUMULATED AMORTIZATION Opening balance - 14,173,813 14,208,808 54,070,874 Add: Amortization - 722,067 1,790,169 4,326,394 Less: Accumulated amortization on disposals - (3,688,260) (1,926,356) (2,132) Closing balance - 11,207,620 14,072,621 58,395,136 Net book value as at December 31, 2016 $ 223,312,159 $ 9,668,445 $ 10,613,118 $ 203,873,158 50 Annual Report 2017
Notes to the Consolidated Financial Statements c. Works of art and historical treasures: The City manages and controls some works of art and non-operational historical assets located at City sites and public display areas. These assets are not recorded as tangible capital assets and are not amortized. d. Write-down of tangible capital assets: The write-down of tangible capital assets during the year was nil (2016 - nil). Buildings Drainage Land Improvements Water Sanitary Sewer Assets Under Construction (AUC) 2017 Total $ 37,624,341 $ 88,406,863 $ 20,524,274 $ 75,903,737 $ 58,778,882 $ 4,646,266 $ 817,026,620 197,342 257,540-286,006 105,637 29,309,900 32,533,929-528,327 43,164 1,568,904 521,624 (5,297,722) - - (62,541) - (247,250) (10,089) - (2,034,177) 37,821,683 89,130,189 20,567,438 77,511,397 59,396,054 28,658,444 847,526,372 18,551,047 30,603,456 5,977,859 32,549,953 21,032,437-192,390,129 807,356 1,317,354 290,909 1,586,528 883,691-11,449,554 - (24,390) - (95,395) (3,221) - (1,417,107) 19,358,403 31,896,420 6,268,768 34,041,086 21,912,907-202,422,576 $ 18,463,280 $ 57,233,769 $ 14,298,670 $ 43,470,311 $ 37,483,147 $ 28,658,444 $ 645,103,796 Buildings Drainage Land Improvements Water Sanitary Sewer Assets Under Construction (AUC) 2016 Total $ 37,256,695 $ 87,419,757 $ 20,395,464 $ 75,201,350 $ 57,675,355 $ 5,620,560 $ 810,708,057 (227,086) 876,563-535,935 732,134 4,418,857 15,368,823 594,732 114,568 128,810 247,199 429,107 (5,312,431) - - (4,025) - (80,747) (57,714) (80,720) (9,050,260) 37,624,341 88,406,863 20,524,274 75,903,737 58,778,882 4,646,266 817,026,620 17,627,952 29,294,160 5,687,763 30,977,457 20,181,825-186,222,652 923,095 1,309,871 290,096 1,597,516 872,200-11,831,408 - (575) - (25,020) (21,588) - (5,663,931) 18,551,047 30,603,456 5,977,859 32,549,953 21,032,437-192,390,129 $ 19,073,294 $ 57,803,407 $ 14,546,415 $ 43,353,784 $ 37,746,445 $ 4,646,266 $ 624,636,491 City of Port Coquitlam 51
Notes to the Consolidated Financial Statements 13. Accumulated Surplus 2017 2016 Unrestricted Reserves: General $11,310,469 $ 15,325,251 Water 6,819,427 6,764,871 Sewer 2,913,505 2,597,365 21,043,401 24,687,487 Restricted Reserves Note 14 111,733,268 92,124,484 Equity in tangible capital assets Note 15 624,023,146 602,964,183 Equity in inventories and prepaids 452,027 424,353 624,475,173 603,388,536 $ 757,251,842 $ 720,200,507 14. Restricted Reserves December 31, 2016 Contributions/ Transfers Interest Allocation Use of Reserves December 31, 2017 Building maintenance $ 3,005,479 $ - $ 35,120 $ (2,390,297) $ 650,302 Cemetery expansion 61,658 57,011 1,749-120,418 Community amenities 202,119 147,713 5,354-355,186 Environmental 480,949-9,330-490,279 Equipment 11,012,806 1,423,742 222,791 (518,669) 12,140,670 Gas tax 669,059 223,586 15,149-907,794 Land sale 16,114,200 17,406,322 469,920 (1,189,396) 32,801,046 Long term infrastructure 21,339,204-381,864 (3,310,939) 18,410,129 Operating 2,497,447 198,951 49,964 (45,604) 2,700,758 Parking 2,888,309 148,855 57,314 (16,855) 3,077,623 Parks and recreation 898,816 157,445 16,243 (280,503) 792,001 Parkland acquisition 2,086,425 65,000 41,107-2,192,532 Public safety building 287,084-4,611 (98,813) 192,882 Public works special capital 2,346,265-45,142 (38,767) 2,352,640 Recreation complex 6,346,757 3,597,075 118,734 (4,049,996) 6,012,570 RCMP 1,457,720 220,000 30,414-1,708,134 Roads and drainage infrastructure 8,152,525 546,349 141,427 (2,271,328) 6,568,973 Sewer 3,452,425-62,791 (431,534) 3,083,682 Social housing 273,107 147,713 6,731-427,551 Unallocated capital 6,802,847 8,074,200 182,295 (2,886,580) 12,172,762 Water 1,749,283 4,128,900 60,759 (1,363,606) 4,575,336 $ 92,124,484 $ 36,542,862 $ 1,958,809 $ (18,892,887) $ 111,733,268 52 Annual Report 2017
Notes to the Consolidated Financial Statements 15. Equity in Tangible Capital Assets 2017 2016 Cost of tangible capital assets Note 12 $ 847,526,372 $ 817,026,620 Accumulated amortization Note 12 (202,422,576) (192,390,129) Debt incurred to purchase tangible capital assets Note 11 (21,080,650) (21,672,308) $ 624,023,146 $ 602,964,183 16. 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, 2016, the plan has about 193,000 active members and approximately 90,000 retired members. Active members include approximately 38,000 contributors from local governments. Every three years, an actuarial valuation is performed to assess the financial position of the plan and adequacy of plan funding. The actuary determines an appropriate combined employer and member contribution rate to fund the plan. The actuary s calculated contribution rate is based on the entry-age normal cost method, which produces the long-term rate of member and employer contributions sufficient to provide benefits for average future entrants to the plan. This rate 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. The City of Port Coquitlam paid $2,916,139 (2016 - $2,699,947) for employer contributions while employees contributed $2,351,874 (2016 - $2,179,888) to the plan in fiscal 2017. The next valuation will be as at December 31, 2018, with results available 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. City of Port Coquitlam 53
Notes to the Consolidated Financial Statements 17. Commitments and Contingencies a. The loan agreements with the Greater Vancouver Regional District and the Municipal Finance Authority provide that, if at any time the scheduled payments provided for in the agreements are not sufficient to meet the Authority s obligations in respect of such borrowing, the resulting deficiency becomes a joint and several liability of the City and the other participants. b. A number of legal claims have been initiated against the City in varying or unspecified amounts. The outcome of these claims cannot reasonably be determined at this time. The amount of loss, if any, arising from these claims will be recorded in the period in which the loss is realized. Liability insurance is carried by the City, subject to a deductible of $250,000. The City self insures claims under $250,000. c. The City is a shareholder and member of E-Comm Emergency Communications for Southwest British Columbia Incorporated (E-Comm) whose services provided include: regional 9-1-1 call centre for the Greater Vancouver Regional District; Wide Area Radio network; dispatch operations; and records management. The City has 1 Class A share and 2 Class B share (of a total of 29 Class A and 23 Class B shares issued and outstanding as at December 31, 2017). As a Class A shareholder, the City shares in both funding the future operations and capital obligations of E-Comm (in accordance with a cost sharing formula), including any lease obligations committed to by E-Comm up to the shareholder s withdrawal date. d. The City provides a share of both the ongoing operations and any additional costs relating to capital assets (in accordance with a negotiated agreement) for the RCMP building located at 2986 Guildford Way, Coquitlam, BC. e. The City has entered into an agreement for construction of a recreation complex for $122,552,850 with a term of 5 years. The City will offset $16,150,000 of the progress payments against the proceeds from a related land sale (Note 4(a)). 18. Trust Funds Certain assets have been conveyed or assigned to the City to be administered as directed by an agreement or statute. The City holds the assets for the benefit of, and stands in a fiduciary relationship to, the beneficiary. The following trust fund is excluded from the City s consolidated financial statements. 2017 2016 Cemetery Perpetual Care Fund Cash balance, beginning of year $ 1,486,858 $ 1,407,951 Net contributions received 68,123 51,239 Interest earned 29,506 27,668 Cash balance, end of year $ 1,584,487 $ 1,486,858 54 Annual Report 2017
Notes to the Consolidated Financial Statements 19. Taxation and Other Levies In addition to levying and collecting real property tax for municipal purposes, the City is required to levy and collect taxes on behalf of other jurisdictions as noted below: 2017 2016 Gross taxes levied on property $ 100,790,770 $ 96,663,766 Taxes levied and collected on behalf of other jurisdictions Province of BC - School Taxes 28,482,539 27,700,065 Greater Vancouver Regional District 866,483 840,225 BC Assessment Authority 929,274 894,348 South Coast British Columbia Transportation Authority 5,715,499 5,706,014 Municipal Finance Authority 4,014 3,184 35,997,809 35,143,836 Taxation revenue $ 64,792,961 $ 61,519,930 20. Budget Information The budget information presented in these consolidated financial statements is based upon the 2017 Financial Plan Bylaw approved by Council on May 4, 2017. The chart below reconciles the approved budget to the budget figure reported in these consolidated financial statements. Budget Amount Revenue $ 107,574,100 Expenses (93,709,500) Annual surplus per consolidated statement of operations 13,864,600 Add: Amortization 13,000,000 Transfers from reserves 45,565,800 Less: Capital expenditures (70,984,600) Capital contributed by developers (1,000,000) Debt principal repayments (445,800) Approved budget $ - City of Port Coquitlam 55
Notes to the Consolidated Financial Statements 21. Operations by Segment The City provides a wide range of municipal services to its residents, businesses, industries, farms and other properties within its boundaries. The City s operations and activities are organized and reported by segments broadly based on departmental business units. The departments disclosed in the segmented information, along with the services they provide, are as follows: General Government: General: Includes activities that are attributable to multiple segments. Corporate Support: These support services include: communications and administrative services, corporate office and lands, bylaw services and information services. Finance: Provides financial services to citizens, City departments and City Council including financial planning and systems, accounting services, revenue and collections, payroll, purchasing and risk management. Human Resources: Provides specialized advice and assistance in all facets of people management including recruitment, labour relations, occupational health and safety, staff training and development, benefit administration, and wage and salary administration. Office of the Chief Administrative Officer (CAO): Oversees the implementation of the vision, plans and priorities by ensuring effective policies are in place and adhered to and by providing leadership that enables an engaged and productive municipal workforce. Please note: Note 21 spans two pages. REVENUE General Corporate Support General Government Finance Human Resources Office of the CAO Engineering & Public Works Taxation and other levies $ 64,628,761 $ - $ - $ - $ - $ - Utility rates (93,549) - - - - - Sale of services 235,320 31,808 249,887-1,200 1,482,368 Contributions 323,747 1,290 - - - 5,482,830 Permits and licences 20,683 1,067,496 30,813 - - 28,940 Investment income 2,991,292-395 - - - Penalties and fines 232,625 29,725 - - - 13,800 Other revenue 726,273 12,988 60,215 50,000-211,404 Gain (loss) on disposals and write-downs - - - - - 17,080,768 $ 69,065,152 $ 1,143,307 $ 341,310 $ 50,000 $ 1,200 $ 24,300,110 EXPENSES Personnel $ 1,393 $ 2,984,165 $ 2,202,225 $ 823,253 $ 268,512 $ 7,583,119 Contracted and other Services 24,587 921,978 321,476 344,766 3,287 1,601,325 Telephone, utilities and rent 162 45,795 64,224 320 65 661,922 Materials and supplies 26,451 98,213 163,731 11,894 3,068 1,906,510 Internal charges (recoveries) 481 (519,180) (1,015,610) 104 - (2,707,514) Insurance and claims 673,112-234,503 - - 210,412 Interest and bank charges 888,892 13,894 11,963 - - 4,747 Grants and financial assistance 46,278 - - - - - Amortization 115,889 416,672 - - - 7,410,241 1,777,245 3,961,537 1,982,512 1,180,337 274,932 16,670,762 ANNUAL SURPLUS (DEFICIT) $ 67,287,907 $(2,818,230) $ (1,641,202) $(1,130,337) $ (273,732) $ 7,629,348 56 Annual Report 2017
Notes to the Consolidated Financial Statements Engineering & Public Works: Provides and maintains a number of essential municipal services and infrastructure including transportation, parks, trails, athletic fields, roads and drainage, environmental protection, management of the City s fleet and related engineering services. Recreation: Delivers recreation, sport, community and cultural programs, events and services, and operates recreation facilities. Police Services: Is a shared service with the City of Coquitlam that protects the community from criminal activity and ensures public safety. Fire & Emergency Services: Protects life, property and the environment through the provision of emergency response, inspections, code enforcement and public education. Development Services: Ensures orderly and safe development within the City, including planning, building and development engineering services. Solid Waste: Includes curbside garbage, recycling and organics collection and glass collection from depot locations across the City. Water Operations: The water utility is an essential service delivered by the City to its residents and businesses for the supply of high quality, potable water at flows and pressures suitable for fire protection. Sanitary Sewer Operations: The sanitary sewer utility is an essential service provided by the City to its residents and businesses for the collection and disposal of liquid wastes. Recreation Police Services Fire & Emergency Development Services Services Solid Waste Water Operations Sanitary Sewer Operations 2017 2016 $ - $ - $ - $ 164,200 $ - $ - $ - $ 64,792,961 $ 61,519,930 - - - - 2,673,810 11,613,192 8,397,760 22,591,213 19,250,925 3,661,772 33,752 81,076 293,731 621,098 4,571-6,696,583 9,021,148 741,113 600,516 1,379 645,407-162,440-7,958,722 6,473,703 - - 1,740 1,734,783-9,105-2,893,560 2,827,534 - - - - - - - 2,991,687 2,717,309 - - - - - 104,989 68,583 449,722 438,730 46,001 9,581 31,574 17,049 30 1,475-1,166,590 1,407,267 - - - - - (151,317) (6,865) 16,922,586 230,593 $ 4,448,886 $ 643,849 $ 115,769 $ 2,855,170 $ 3,294,938 $ 11,744,455 $ 8,459,478 $126,463,624 $103,887,139 $ 7,285,827 $ - $ 10,432,296 $ 2,751,275 $ 996,686 $ 652,104 $ 334,105 $ 36,314,960 $ 34,645,532 3,320,479 14,472,748 306,282 293,298 1,061,774 6,505,393 5,030,029 34,207,422 33,868,078 682,111-57,381 994 129 75,063 100,961 1,689,127 1,609,716 735,143-216,824 5,819 12,689 108,300 57,988 3,346,630 3,777,486 (60,325) - 192,071 48,897 1,474,937 1,328,019 1,258,120 - - 749 - - 4,343 - - - 1,123,119 820,205 133,419 - - 12,193 3 - - 1,065,111 1,088,450 170,088 - - - - - - 216,366 175,431 540,076 64,544 432,750 - - 1,586,528 882,854 11,449,554 11,831,408 12,807,567 14,537,292 11,637,604 3,116,819 3,546,218 10,255,407 7,664,057 89,412,289 87,816,306 $(8,358,681) $(13,893,443) $ (11,521,835) $ (261,649) $ (251,280) $ 1,489,048 $ 795,421 $ 37,051,335 $ 16,070,833 City of Port Coquitlam 57
Notes to the Consolidated Financial Statements 22. Comparative Information Certain comparative information has been reclassified to conform with the financial statement presentation adopted in the current year. 58 Annual Report 2017
Statistical Section (Unaudited) City of Port Coquitlam 59
Average Home Municipal Taxes and Utilities NORTH VANCOUVER DISTRICT $6,706 Source: BC Ministry of Community, Sport & Cultural Development WEST VANCOUVER $10,593 NORTH VANCOUVER CITY $6,047 COQUITLAM $5,586 PORT MOODY $6,279 PITT MEADOWS $4,207 VANCOUVER $7,469 BURNABY $6,422 MAPLE RIDGE $4,740 NEW WESTMINSTER $6,289 PORT COQUITLAM $4,655 RICHMOND $6,187 TAX RANGE > $7,000 $6,500 - $6,999 $6,000 - $6,499 $5,000 - $5,999 $4,000 - $4,999 DELTA $5,030 SURREY $4,869 WHITE ROCK $6,915 LANGLEY (CITY) $4,286 LANGLEY TOWNSHIP $4,609 West Vancouver Vancouver White Rock North Vancouver District Burnaby New Westminster Port Moody Richmond North Vancouver City Average Coquitlam Delta Surrey Maple Ridge Port Coquitlam Langley Township Langley City Pitt Meadows $7,469 $6,915 $6,706 $6,422 $6,289 $6,279 $6,187 $6,047 $5,728 $5,586 $5,030 $4,869 $4,740 $4,655 $4,609 $4,286 $4,207 $10,593 $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 60 Annual Report 2017
Community Statistics Assessed Values for General Municipal Purposes Dollars (000,000) Source: BC Assessment Authority 16,000 15,933 14,000 12,000 10,000 10,103 10,154 10,804 12,165 8,000 6,000 4,000 2,000 0 2013 2014 2015 2016 2017 Total Land Total Improvements Population Estimates People Source: BC Ministry of Citizens Services 64,000 62,000 60,000 59,279 60,286 60,767 61,541 62,194 58,000 56,000 54,000 2013 2014 2015 2016 2017 City of Port Coquitlam 61
Household Cost of City Services Estimated Household Costs of City Services for an Average Single Family Residence Source: City of Port Coquitlam Finance Department $- $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 Water Levy Policing $430.63 $411.03 Fire & Emergency Sewer Levy $317.48 $349.49 Administrative Services Engineering & Public Works Recreation Services Solid Waste Fee Infrastructure Funding $232.93 $261.19 $217.13 $189.36 $170.28 Recreation Complex Levy $122.69 Terry Fox Library Debt Repayment Recreation Complex Parcel Tax $50.94 $42.94 $25.00 62 Annual Report 2017
Property Taxes Property Taxes Levied and Collected Thousands Source: City of Port Coquitlam Finance Department 2012 2013 2014 2015 2016 2017 City of Port Coquitlam - tax $ 51,408 $ 54,066 $ 54,918 $ 57,120 $ 60,688 $ 64,793 Regional District 755 806 789 809 840 866 BC Assessment 821 846 851 870 894 929 Finance Authority 3 3 3 3 3 4 School District 24,369 25,464 26,425 27,146 27,700 28,483 BC Transit Authority 5,546 5,604 5,607 5,671 5,706 5,715 TOTAL CURRENT TAXES LEVIED 82,902 86,789 88,593 91,619 95,831 100,790 Current tax collected ($) 81,159 85,323 86,872 90,306 94,886 99,585 Current tax collected (%) 97.90% 98.31% 98.06% 98.57% 99.01% 98.80% Tax arrears beginning of year 2,182 2,144 2,227 1,977 1,953 1,667 Tax arrears collected ($) 1,354 1,376 1,529 1,380 1,495 1,318 Tax arrears collected (%) 62.05% 64.18% 68.66% 69.80% 76.59% 79.06% TOTAL TAX COLLECTIONS $ $ 82,513 $ 86,699 $ 88,401 $ 91,686 $ 96,381 $ 100,903 Taxes, Major Levies and Other Government Collections Dollars Source: City of Port Coquitlam Finance Department 140,000,000 120,000,000 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000-2012 2013 2014 2015 2016 2017 City of Port Coquitlam 63
Taxes and Revenues Revenues by Source Dollars Source: City of Port Coquitlam Finance Department 140,000,000 120,000,000 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000 0 2012 2013 2014 2015 2016 2017 Taxation and other levies Utility charges Sale of services Contributions Investment income Other revenue Building Permits and Total Tax Collection Dollars Source: City of Port Coquitlam Finance Department 250,000,000 200,000,000 150,000,000 100,000,000 50,000,000 0 2013 2014 2015 2016 2017 Building Permits Total Tax Collections 64 Annual Report 2017
Expenses Expense by Function Dollars Source: City of Port Coquitlam Finance Department 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0 Engineering & public works Recreation Police services General government Fire & emergency services Development services Water operations Sanitary sewer operations Annual Totals 2013 2014 2015 2016 2017 $80,383,775 $82,470,841 $85,684,343 $87,816,298 $89,412,289 Expense by Object Dollars Source: City of Port Coquitlam Finance Department 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0 Salary and Benefits Materials Contracted Amortization Other Annual Totals 2013 2014 2015 2016 2017 $80,383,775 $82,470,841 $85,684,343 $87,816,298 $89,412,289 City of Port Coquitlam 65
Capital Expenditures Capital Expenditures and Net Debt Per Capita Dollars Source: City of Port Coquitlam Finance Department 600 500 400 300 200 100 0 2012 2013 2014 2015 2016 2017 Capital Per Capita Net Debt Per Capita Capital Expenditures by Source Dollars Source: City of Port Coquitlam Finance Department 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0 2013 2014 2015 2016 2017 General Levy Reserve Funds Other 66 Annual Report 2017
Surplus, Reserve and Other Accounts Surplus, Net Financial Assets and Debt Dollars Source: City of Port Coquitlam Finance Department 120,000,000 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000 0 Annual Surplus Net Financial Assets Gross Debt Net Debt 2012 2013 2014 2015 2016 2017 Accumulated Surplus Dollars Source: City of Port Coquitlam Finance Department 760,000,000 740,000,000 720,000,000 700,000,000 680,000,000 660,000,000 640,000,000 2012 2013 2014 2015 2016 2017 Summary of Major Statutory Reserve Funds Dollars Source: City of Port Coquitlam Finance Department 120,000,000 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000-2012 2013 2014 2015 2016 2017 Capital Equipment Operating Land sale City of Port Coquitlam 67
2017 Total Revenue and Expenses 2017 Revenue Total Revenue: $126.5 million Utility charges 18% Sale of services 5% Contributions 6% Permits and licenses 2% Investment income 3% Other revenue 15% Taxation and other levies 51% 2017 Expenses Total Expenses: $89.4 million Water operations 11% Solid waste operations 4% Development services 4% Sanitary sewer operations 9% Engineering & public works 19% Recreation 14% Fire & emergency services 13% General government 10% Police services 16% 68 Annual Report 2017
Principal Taxpayers & Tax Exemptions Principal Corporate Taxpayers Registered Owner Primary Property Taxes Levied 0697788 BC Ltd Shopping Centre $ 2,282,185 Canadian Pacific Railway Railyard 1,152,215 Kebet Holdings Ltd Miscellaneous 850,309 Artis Poco Place Ltd Shopping Centre 607,723 629654 BC Ltd Warehouse Distribution 584,542 Mondi Properties Miscellaneous 474,017 1510060 Ontario Inc Shopping Centre 465,158 Port of Vancouver Venture Ltd Shipping Company 437,358 Sysco Canada Inc Food Distributor 421,323 RPMG Holdings Ltd Miscellaneous 411,596 Costco Wholesale Canada Ltd Retail Sales 408,881 Westlo Financial Corp Shopping Centre 399,950 De Gobbi Industries Ltd Miscellaneous 370,854 566203 BC Ltd Miscellaneous 299,944 Home Depot Holdings Inc Retail Sales 299,944 Beedie(Kingsway Ave) Holdings II Ltd Manufacturing 296,461 1488 Coast Meridian RD Holdings Ltd Warehouse Distribution 286,494 Onni Development Corp Miscellaneous 283,853 Sunrise Investments Inc Miscellaneous 241,895 Greater Vancouver Transportation Authority Service Repair Garage 208,880 Yen Hoy Enterprises Ltd Shopping Centre 181,780 Snowcat Property Holdings Ltd Shopping Centre 177,973 660775 BC LTD Shopping Centre 175,126 Viam Holdings Warehouse Distribution 168,440 0912890 B C Ltd Shopping Centre 166,227 $ 11,653,128 Permissive Property Tax Exemptions* Name Tax Relief Foursquare Gospel Church of Canada $ 56,421 Our Lady of Assumption Roman Catholic Church and Elementary 50,821 Royal Canadian Legion Port Coquitlam (British Columbia/Yukon Command No 133) 44,080 Fellowship Deaconry Association of British Columbia 35,828 Vancouver Bible Presbyterian Church 29,850 The Church in Coquitlam 28,291 Port Coquitlam Seniors Housing 27,024 Northview Community Church 22,807 Hope Lutheran Church 22,158 Trustees of Trinity Congregation of the United Church of Canada 18,344 Tri-City Women's Centre 16,271 Southside Baptist Church 13,667 Pentecostal Assemblies of Canada 13,281 Coquitlam Chinese Evangelical Bible Church 12,822 Port Coquitlam Kinsmen Club 11,146 Coquitlam Chinese Evangelical Free Church 10,949 Hyde Creek Streamkeepers 10,397 Port Coquitlam Heritage and Cultural Society 9,451 Tri-City Islamic Centre 9,431 Victory Baptist Church 7,464 $ 450,503 * This list does not include statutory exemptions provided by the province. Permissive Property Tax Exemptions in previous years included both Permissive and Statutory Property Exemptions. City of Port Coquitlam 69
THE CORPORATION OF T H E C I T Y O F BRITISH COLUMBIA, CANADA Tel: 604.927.5411 Fax: 604.927.5360 info@portcoquitlam.ca 2580 Shaughnessy Street Port Coquitlam, British Columbia Canada V3C 2A8 www.portcoquitlam.ca