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2017 Financial Annual Report

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2017 Financial Annual Report 2017 annual report City of Edmonton, Alberta, Canada For the Year Ended December 31, 2017 TABLE OF CONTENTS Introduction 4 Consolidated Schedule of Segment Disclosures 63 Our Organization 5 Supplementary Financial Information 65 of Internally Restricted and Other Entities Message from City Council 6 Notes to Consolidated Financial Statements 66 Message from City Manager 8 Legislative and Administrative Organizational Chart 10 Statistical Review 96 Political and Administrative Structure 11 General Municipal Data 98 Edmonton’s Accomplishments in 2017 14 Assessment and Tax Levy 99 Economic Performance 20 Investment Funds 100 Long-term Debt 101 Financial Statement Discussion and Analysis 22 Consolidated Expenses 102 Consolidated Revenue and Capital Financing 103 Consolidated Financial Statements 54 Financial Position, Annual Surplus and Reserves 104 Management’s Responsibility for Financial Reporting 56 Independent Auditors’ Report 57 Related Boards and Authorities 105 Consolidated Statement of Financial Position 58 Consolidated Statement of Operations and Accumulated Surplus 59 Consolidated Statement of Change in Net Financial Assets 60 Consolidated Statement of Cash Flows 61 Consolidated Schedule of Tangible Capital Assets 62 Produced by the City of Edmonton, Financial and Corporate Services, with support from Communications and Engagement and other civic departments, offices and agencies. 2017 annual report City of Edmonton, Alberta, Canada For the Year Ended December 31, 2017 Introduction introduction 4 Introduction 2017 Annual Report | CITY OF EDMONTON OUR ORGANIZATION Every day, over 900,000 residents rely on the City of Edmonton for everything from police and fire services to waste collection and park maintenance. Edmonton also serves as a hub and service centre for the Edmonton metropolitan region, home to nearly 1.3 million people. Edmonton’s elected City Council and Mayor set policy, approve budgets and provide direction for the City Manager who, along with the City Auditor, is one of two direct employees of Council. Administration, directed by the City Manager, implements City Council’s vision and administers public services. Administration is organized into departments that work cooperatively to manage complex and wide-ranging activities. 5 Introduction MESSAGE FROM CITY COUNCIL Looking back 2017 was a year filled with challenges and changes. Edmontonians elected a new City Council and we have returned to growth while continuing to navigate shifting economic circumstances. Back Row (left to right): Ben Henderson - Ward 8 Tony Caterina - Ward 7 Scott McKeen - Ward 6 Mayor Don Iveson Michael Walters - Ward 10 Sarah Hamilton - Ward 5 Jon Dziadyk - Ward 3 Front Row (left to right): Aaron Paquette - Ward 4 Bev Esslinger - Ward 2 Andrew Knack - Ward 1 Mohinder Banga - Ward 12 Mike Nickel - Ward 11 Tim Cartmell - Ward 9 Strong citizens, strong communities and strong cities not only weather Edmonton will soon be a city of a million people - not within 25 years but these changes and challenges - they adapt and thrive. Whether within the next five years. This growth brings exciting opportunities, but we’re faced with changing demographics or challenging economics - also comes with its share of challenges. We need to think, plan and build Edmontonians always come together. We create opportunities, for this growth. While we’ll need to build roads and recreation centres, take risks and build something extraordinary. transport citizens and deliver emergency services across a wider area, we’ll also need to do it smarter. And we need to find new ways to make our city denser and more efficient. 6 Introduction 2017 Annual Report | CITY OF EDMONTON That’s why, in 2017, we continued to invest in a better transit system, with LRT as its backbone. Shifting transportation modes can support healthier communities, create better commutes, reduce greenhouse gas emissions and improve air quality, without sacrificing speed and safety. City Council also increased collaboration with our many regional partners. Together, we’re examining an integrated transit system, aligning our growth plans and pursuing new collective economic city councillor opportunities. This unified approach will not only help attract more jobs representation by ward and investment to the area, it will address the rapid growth in our region. Edmonton comprises 12 municipal wards, as We’ve also increased our focus on open data and analytics to help us outlined on this map. One councillor represents make better decisions, evaluate our performance and find efficiencies. each ward. The Mayor is elected across all wards. By promoting transparency and innovation, we’re making the work we do truly accessible and barrier-free for citizens. And in doing so, we’re demonstrating international leadership in the practice of open government. As City Council we remain steadfast in our vision for Edmonton. It’s a vision of a city that’s uplifting and inclusive for all citizens. A city that’s innovative and resilient. It’s a city that’s made stronger by our diversity 3 4 and willingness to help others. We share this vision with all Edmontonians and will work alongside them to build the city we all aspire to be. 2 7 1 6 8 11 5 10 9 12 population of edmonton 932,546 2016 Census Canada 7 Introduction MESSAGE FROM CITY MANAGER 2017 was a year of notable accomplishments and ongoing evolution. For the Extended Leadership Team, the year As agents of Council, Administration is included many conversations about our squarely focused on enabling a better life for corporate transformation plans. We continue all Edmontonians and committed to excellence to build out our framework for becoming a in city-building, to continuous improvement more open and responsive organization. The and to creating a positive experience for those leadership team has been integral to the shifts we serve. Our work in delivering policies, and adjustments to strategies, structure, recommendations, partnerships and programs process and culture. supports Council’s intention to realize smart, sustainable growth. This annual report reflects the beginnings of our change journey and is a window on our I am proud of the way Administration has priorities and management principles in action. embraced change and remained true to It highlights the investment, collaboration our goal of serving Council, Edmontonians and innovation required to realize growth. In and all employees. 2017, that work included major infrastructure projects, regional development leadership, and the delivery of more than 300 on-going programs and services. Linda D.M. Cochrane City Manager 8 Introduction 2017 Annual Report | CITY OF EDMONTON citizen calls to 311 1.8 M 9 Introduction LEGISLATIVE AND ADMINISTRATIVE ORGANIZATIONAL CHART city council mayor and 12 councillors Community and Public Services Committee Four Councillors Executive Committee Mayor and four Councillors Urban Planning Committee Four Councillors Utility Committee Four Councillors Audit Committee Mayor, four Councillors and two external members Other Committees Council has other committees to handle various tasks (e.g. Council Services) Office of the City Auditor David Wiun, City Auditor EPCOR Utilities Inc. Hugh Bolton, Chair Police Commission Tim O'Brien, Chair Edmonton Public Library Board Brian Heidecker, Chair Edmonton Economic Development Corporation Angela Fong, Chair Other Commissions, Agencies, Boards and Authorities city of edmonton administration City Manager Linda Cochrane Citizen Services Rob Smyth, Deputy City Manager City Operations Doug Jones, Deputy City Manager Communications and Engagement Carolyn Campbell, Deputy City Manager Financial and Corporate Services Todd Burge, Deputy City Manager and Chief Financial Officer Integrated Infrastructure Services Adam Laughlin, Deputy City Manager Urban Form and Corporate Strategic Development Leanne McCarthy, Deputy City Manager Regional and Economic Development Gary Klassen, Deputy City Manager 10 Introduction 2017 Annual Report | CITY OF EDMONTON POLITICAL AND ADMINISTRATIVE STRUCTURE city council city administration 13 elected representatives make up Edmonton’s City Council: one mayor City Administration is lead by the City Manager, who reports to City and 12 councillors. Every four years, a civic election is held in which all Council. The City Manager is the City of Edmonton’s Chief Administrative Edmontonians elect the mayor and councillors are elected by voters in Officer, carrying out Council’s direction and administering public the wards they represent. On October 16, 2017, Edmontonians re-elected services. Linda Cochrane has had held this role since March 2016. Don Iveson as Mayor, re-elected 8 councillors and elected four new councillors. Edmonton’s next civic election will be in 2021. As well as the Office of the City Manager, City Administration has seven departments that work closely with each other in delivering public City Council typically meets two or three times a month. Council also has services. A department is made up of areas that have similar corporate standing committees to take a closer look at specific topics and make functions. The City of Edmonton’s departments are: recommendations. Some examples are: Citizen Services Audit Committee helps City Council meet its responsibility to oversee financial reporting, audit and enterprise risk management City Operations Community and Public Services Committee oversees the delivery Communications and Engagement of City services, including neighbourhoods and communities,
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