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2015 Financial Annual Report

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2015 Financial Annual Report CITY OF EDMONTON, ALBERTA, CANADA 2015 FOR THE YEAR ENDED DECEMBER 31, 2015 annual report PG 2 2015 ANNUAL REPORT CITY OF EDMONTON INTRODUCTION table of contents contents introductory information 4 statistical review 90 Our Organization 4 General Municipal Data 92 Message from City Council 6 Assessment and Tax Levy 93 Message from City Manager 8 Investment Funds 94 Legislative and Administrative Long-term Debt 95 Organizational Chart 9 Consolidated Expenses 96 Political and Administrative Structure 10 Consolidated Revenue and Capital Financing 97 Edmonton... Strong. Stable. Supportive. 12 Financial Position, Annual Surplus and Reserves 98 Our Edmonton… Open Arms. Open Hearts 14 Edmonton’s Accomplishments in 2015 16 related boards and authorities 99 Economic Performance 20 financial information 22 Financial Statement Discussion and Analysis 24 Consolidated Financial Statements 52 Management’s Responsibility for Financial Reporting 54 Independent Auditors’ Report 55 Consolidated Statement of Financial Position 56 Consolidated Statement of Operations and Accumulated Surplus 57 Consolidated Statement of Change in Net Financial Assets 58 Consolidated Statement of Cash Flows 59 Consolidated Schedule of Tangible Capital Assets 60 Consolidated Schedule of Segment Disclosures 61 Notes to Consolidated Financial Statements 63 INTRODUCTION 2015 ANNUAL REPORT CITY OF EDMONTON PG 3 CITY OF EDMONTON, ALBERTA, CANADA FOR THE YEAR ENDED DECEMBER 31, 2015 PRODUCED BY THE CITY OF EDMONTON, 2015 FINANCIAL SERVICES AND UTILITIES, WITH SUPPORT FROM CORPORATE COMMUNICATIONS, annual CIVIC DEPARTMENTS, OFFICES AND AGENCIES. report PG 4 2015 ANNUAL REPORT CITY OF EDMONTON INTRODUCTION our organization INTRODUCTION 2015 ANNUAL REPORT CITY OF EDMONTON PG 5 As a corporation, the City of Edmonton serves the more than one million people living in Metro Edmonton. The Mayor and City Council govern this corporation, setting policy, budget and providing direction for the City Manager who, along with City Administration, implements City Council’s vision and administers public services. The City’s departments are responsible for particular aspects of public service, while city-owned subsidiaries and authorities provide other services on the City’s behalf. 6.9 million visitors to edmonton.ca PG 6 2015 ANNUAL REPORT CITY OF EDMONTON INTRODUCTION message from city council As we reflect back at the past year, 2015 was filled with accomplishments and accolades, challenges and championships. No doubt, it was a challenging year as we faced some of the toughest economic conditions in recent history. Yet in our own unique and very Edmonton way, we remain excited, energized and optimistic about our future. Back Row (left to right): Mike Nickel - Ward 11 Dave Loken - Ward 3 Andrew Knack - Ward 1 Mayor Don Iveson Michael Oshry - Ward 5 Michael Walters - Ward 10 Scott McKeen - Ward 6 Front Row (left to right): Bev Esslinger - Ward 2 Ben Henderson - Ward 8 Ed Gibbons - Ward 4 Bryan Anderson - Ward 9 Tony Caterina - Ward 7 Amarjeet Sohi - Ward 12 (elected in fall 2015 federal election as a Member of Parliament) As City Council we have not strayed from our vision of We’re especially proud of our work in 2015 building a great city that provides a high quality of life to care for our most vulnerable citizens. Our to our citizens. It’s a vision of a city that’s connected, EndPovertyEdmonton strategy will focus our efforts innovative, progressive and sustainable. In keeping with to, among other things, eliminate racism, increase this vision, we continue to move forward on some of our affordable housing and improve access to mental health city’s most transformational projects like Blatchford, services. The strategy represents an opportunity for the Walterdale Bridge, Rogers Place and LRT expansion. reconciliation, consistent with the outcomes of the These projects, and the many others taking shape in Truth and Reconciliation Commission’s final report. our city will not only change the face of Edmonton, it will enhance our global image. Edmonton remains well positioned for continued growth, perhaps more modestly than in previous We also took important steps this year to make years. With a commitment to fiscal responsibility and Edmonton one of the most environmentally sustainable thoughtful planning, we have the right fundamentals cities in Canada. Our new Energy Transition Strategy in place to steer us through these challenges and will improve the efficiency of City buildings, decrease ensure our continued success. Because what we love greenhouse gas emissions, reduce our carbon footprint about this city - our innovative spirit, our willingness and support our economy. to help others and our ambition to be, build and make something – remains at the heart of everything we do. INTRODUCTION 2015 ANNUAL REPORT CITY OF EDMONTON PG 7 city councillor representation by ward Edmonton comprises 12 municipal wards, as outlined on this map. One councillor represents each ward. The Mayor is elected across all wards. 3 4 2 7 1 877,926 6 people call 8 Edmonton home 2014 municipal census 5 10 11 9 12 PG 8 2015 ANNUAL REPORT CITY OF EDMONTON INTRODUCTION message from city manager Municipal management is about continual evolution; it is about adapting to changes in our environment and understanding our citizens’ priorities. Our city fared much better than most parts of the province during the year in dealing with a challenging economy. We adapted our budget for 2016 to 2018 to control cost increases in certain areas, found reductions, and reallocated existing funds to civic services that residents told us are their top priorities. For the past 20 years, in fact, we have regularly examined our budgets to look for efficiencies and potential revenue streams so that we could take care of emerging needs without adding to the tax levy. In 2016 we will continue to examine whether our resources are used in the best way possible in an intensive program and service review. Our Administration will also continue our thoughtful, deliberate work to build a workplace culture that fosters collaboration and integration. We are servant leaders. Our job is to use our skills and expertise to support Council in decision-making and communities in reaching their goals. Throughout the challenge and change of 2015, we have remained steadfast in our commitment to the citizens of Edmonton and to delivering on City Council’s priorities. Our work is about innovation, growth and building a great city. We are proud to serve the people of Edmonton. Linda D.M. Cochrane City Manager INTRODUCTION 2015 ANNUAL REPORT CITY OF EDMONTON PG 9 legislative and administrative organizational chart city council Mayor and 12 Councillors Community Services Committee Four Councillors Executive Committee Mayor and four Councillors Transportation Committee Four Councillors Utility Committee Four Councillors Audit Committee Mayor, four Councillors and two external members city of edmonton administration LRT Governance Board Four to six external members City Manager - L. Cochrane Other Committees Council has other committees to handle Community Services various tasks (e.g. Council Services) R. Smyth, Acting General Manager Office of the City Auditor Corporate Services D. Wiun, City Auditor K. Rozmahel, General Manager EPCOR Utilities Inc. Financial Services & Utilities H. Bolton, Chair T. Burge, Chief Financial Officer and Treasurer, General Manager Police Commission C. Palmer, Chair Sustainable Development G. Klassen, General Manager Edmonton Public Library Board E . Calabrese-Amrhein, Chair Transportation Services D. Wandzura, General Manager Edmonton Economic Development Corporation B. Travers, Chair Corporate organizational structure as of December 31, 2015 Other Commissions, Agencies, Boards and Authorities (e.g. Waste RE-solutions Edmonton and Non-Profit Housing Corporation) PG 10 2015 ANNUAL REPORT CITY OF EDMONTON INTRODUCTION political and administrative structure city council office of the city auditor Edmonton’s City Council consists of 13 elected Appointed by and accountable to City Council, the Office representatives including one mayor and 12 councillors. of the City Auditor provides internal audit services. In Councillors are elected by voters in the wards they providing such services to the corporation, the Office of represent and the mayor is elected by all Edmontonians the City Auditor performs the key roles of guardian and who vote in the civic election. Council provides agent of change by performing independent audits and leadership and direction to the City Manager and studies of civic departments and programs. City Administration. city administration Edmonton has 12 wards and each ward is represented by one councillor. The most recent municipal election City Administration operates under the leadership of took place October 21, 2013, with the next municipal the City Manager as Chief Administrative Officer. The election to be held on October 16, 2017. Based on an City Manager ensures City Administration carries out amendment of the Local Authorities Election Act in Council’s direction and administers public services. 2012, City Council elections are now held every four Simon Farbrother was City Manager from January 2010 years. One vacancy on City Council occurred in 2015 to September 2015. Linda Cochrane was Acting City when Ward 12 Councillor Amarjeet Sohi was elected in Manager at the end of the year and on March 16, 2016 the fall 2015 federal election as a Member of Parliament. was appointed by City Council as the permanent
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