THE CORPORATION OF T H E C I T Y O F

BRITISH COLUMBIA, CANADA

Planning a livable community

2016 ANNUAL REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31, 2016 Table of Contents

3 INTRODUCTORY SECTION 57 STATISTICAL SECTION (UNAUDITED) 4 Message from the Mayor 58 Average Home Municipal Taxes and Utilities 5 Message from the Chief Administrative Offi cer 59 Assessed Values for General Municipal 6 City of Port Coquitlam Organizational Chart Purposes 7 Port Coquitlam City Council 59 Population Estimates 8 City Snapshot 60 Estimated Household Costs of City Services 9 Economic Snapshot for an Average Single Family Residence 10 2016 Highlights 61 Property Taxes Levied and Collected 11 Giving Back 61 Taxes, Major Levies and Other Government 12 Strategic Direction Collections 13 Letter of Transmittal 62 Revenues by Source 62 Building Permits and Total Tax Collection 15 DEPARTMENT OVERVIEWS 63 Expense by Function 16 Offi ce of the Chief Administrative Offi cer 63 Expense by Object 18 Corporate Support 64 Capital Expenditures and Net Debt Per Capita 20 Development Services 64 Capital Expenditures by Source 22 Engineering & Public Works 65 Surplus, Net Financial Assets and Debt 24 Finance 65 Accumulated Surplus 26 Fire & Emergency Services 65 Summary of Major Statutory Reserve Funds 28 Human Resources 66 2016 Revenue 30 Recreation 66 2016 Expenses 32 RCMP 67 2016 Principal Corporate Taxpayers 68 2016 Permissive Property Tax Exemptions 35 FINANCIAL SECTION 36 Auditors’ Report to the Mayor and Council 38 Consolidated Statement of Financial Position 39 Consolidated Statement of Operations 40 Consolidated Statement of Cash Flows 41 Consolidated Statement of Change in Net Financial Assets 42 Notes to the Consolidated Financial Statements

A Year in Pictures The City of Port Coquitlam would like to thank the photographers whose images brought life to the pages of our 2016 Annual Report. THE CORPORATION OF T H E C I T Y O F

BRITISH COLUMBIA, CANADA

2016 ANNUAL REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31, 2016 Budget and Financial Reporting Awards

Canadian Award for Financial Reporting

The Government Finance Offi cers Association of the United States and Canada (GFOA) awarded a Canadian Award for Financial Reporting to the City of Port Coquitlam for its annual fi nancial report for the fi scal year ended December 31, 2015. This is the City’s 11th consecutive Canadian Award for Financial Reporting. The Canadian Award for Financial Reporting program was established to encourage municipal governments throughout Canada to publish high quality fi nancial reports and to provide peer recognition and technical guidance for offi cials preparing these reports. In order to be awarded a Canadian Award for Financial Reporting, a government unit must publish an easily readable and effi ciently organized annual fi nancial 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 fi nancial picture, enhance an understanding of fi nancial reporting by municipal governments, and address user needs.

Distinguished Budget Presentation Award

The City of Port Coquitlam received a Distinguished Budget Presentation Award from the Government Finance Offi cers Association for its 2016 budget. The award represents a signifi cant achievement by the City and refl ects its commitment to meeting the highest principles of government budgeting. To receive this award, the City had to satisfy internationally recognized guidelines for effective budget presentation. These guidelines assess how well the City’s budget serves as a policy document, a fi nancial plan, an operations guide and a communication device. Budget documents must be profi cient in all four categories to receive this award. This is the 19th year the City has received this honour. The Government Finance Offi cers of the United States and Canada is a non-profi t professional association serving 17,500 fi nance professionals throughout North America. The GFOA’s Distinguished Budget Presentation Award Program is the only national awards program in governmental budgeting.

2 Annual Report 2016 INTRODUCTORY section

3 Message from the Mayor

We all know that nothing gets accomplished without Our work in 2016 included continuing to update our planning ahead. We plan for our kids’ education, our Offi cial Community Plan, including taking a look summer holidays, and even our springtime vegetable at new housing options such as coach houses. We garden. adopted a new Cultural Plan, and fi nalized plans for our new Community Recreation Complex. We The City of Port Coquitlam dedicated a signifi cant invested in our safety with a dedicated RCMP unit, amount of time and effort to planning in 2016. The and planned ahead for possible future disasters. theme of our 2016 annual report, “Planning a Livable Community,” refl ects a wide variety of activities that We changed the way we plan for infrastructure by took place for the purpose of creating the kind of adopting a two-year capital plan. We also planned community we want. an amazing inaugural PoCo Grand Prix. Along the way, we engaged the community in these and other When I think of a livable community, I think of a activities. place with both small-town charm and opportunities for investors and businesses. A place where sports The work we did in 2016 has set the foundation for and the arts are thriving, where the environment is an exciting future for Port Coquitlam. valued and protected, and where there are a variety of transportation choices – including getting around On behalf of the City of Port Coquitlam and by foot and cycle. A place that is safe, and where City Council, I’m pleased to share our 2016 families can afford to live, and their kids as well once accomplishments in this annual report. they grow up. A place that people are proud to call their home.

In many ways, Port Coquitlam is already that place, Greg Moore but there is always room for improvement. Mayor

4 Annual Report 2016 Message from the Chief Administrative Offi cer

If you saw the movie Up!, you probably had a bit of a chuckle when the various dogs’ attention was constantly being diverted: “Squirrel!”

It may be funny on the big screen, but in reality, getting sidetracked and distracted is a constant challenge for local governments.

With little wiggle room in our budgets, we face constant pressures to both be responsive to emerging issues and to make sure we can continue to meet our business plan commitments. On a regular basis, requests are made for new or enhanced programs and opportunities arise to purchase new land, buildings or equipment. There are many more good ideas and projects than there is ability to fund them.

One of the mechanisms we put in place in 2016 is something commonly used in emergency rooms: a triage system. When new requests for service come our way, they are fi ltered based on a variety of criteria, such as urgency, alignment with a Council priority or one of our City plans, and the impact the new request will have on existing work plans and budgets.

Council and staff worked hard in 2016 to defi ne what projects and programs the City will focus on in 2017 and 2018 to advance Council’s three stated budget priorities, paying particular attention to what Best-selling business author Jim Collins (Good to was included in the new priority: livable community. Great, Built to Last) asserts: “If you have more than Almost every new opportunity that comes before three priorities, you don’t have any.” We cannot be us would make Port Coquitlam more livable. Our blind to new opportunities and to changing course challenge is to assess which ones, if any, are so mid-term, but we do want to ensure that if we are enticing that they warrant being pursued. going to pursue something new, that we have thought about how it impacts the path we are on. Strategies such as our triage fi lter help us make sure that we’re targeting our resources where they make the most sense, while being both responsive and thinking long-term. John Leeburn, MBA Chief Administrative Offi cer

City of Port Coquitlam 5 Organizational Chart

CITIZENS OF PORT COQUITLAM (RESIDENTS, PROPERTY OWNERS, BUSINESSES)

CITY COUNCIL

OFFICE OF THE CHIEF ADMINISTRATIVE OFFICER John Leeburn, BCOM, MBA Chief Administrative Offi cer

CORPORATE SUPPORT DEVELOPMENT SERVICES Robin Wishart Laura Lee Richard, MCIP Director Director

Divisions: Bylaw Services, Communications Divisions: Building, Planning, & Admin Services, Community Policing, Development Engineering Corporate Offi ce, Information Services

ENGINEERING & PUBLIC WORKS FINANCE Kristen Meersman, P.Eng, MBA Karen Grommada, CPA, CMA Director Director

Divisions: Administration; Capital Projects, Divisions: Common Services, Finance Infrastructure Planning, Public Works (incl. Services (purchasing, accounting, fi nancial water, sewer, drainage, solid waste utilities) planning, payroll, revenue services)

FIRE & EMERGENCY SERVICES HUMAN RESOURCES Nick Delmonico Steve Traviss, CHRP Fire Chief/City Emergency Coordinator Director

Divisions: Administration; Emergency Functions: Benefi ts & Compensation, Preparedness, Fire Suppression, Training, Occupational Health & Safety, Labour Protective Services & Public Education Relations; Recruitment, Training & Development

RECREATION RCMP Lori Bowie, Bsc, MA Sean Maloney Director Superintendent, Offi cer-in-Charge

Divisions: Recreation Services, Community Contracted service Services, Facility Services

Municipal Auditors Bankers KPMG LLP Toronto Dominion Bank

6 Annual Report 2016 City Council

Port Coquitlam City Council 2014-2018: (left to right) Cllr. Laura Dupont, Cllr. Mike Forrest, Cllr. Brad West, Mayor Greg Moore, Cllr. Darrell Penner, Cllr. Dean Washington, Cllr. Glenn Pollock.

Elected every four years by the citizens of Port Issues requiring a Council decision generally Coquitlam, City Council is a legislative body that appear fi rst before one of the standing committees provides leadership to the City’s government. of Council. These are the Community Safety Committee, Healthy Community Committee, Finance Port Coquitlam City Council is committed to ensuring and Intergovernmental Committee, Smart Growth the priorities of local citizens guide its policies and Committee, and Transportation Solutions & Public decisions on civic matters such as land use and budgets Works Committee. for operations and capital expenditures. These committee meetings, along with Council’s two City Council is made up of the Mayor and six regular meetings each month, are open to the public. Councillors, all of whom are elected for four-year Meeting agendas are available from City Hall or the terms as of 2014. The Mayor chairs the Council City’s website (www.portcoquitlam.ca/council). Live meetings. and archived broadcasts of Council meetings may also be viewed through the same web address.

City of Port Coquitlam 7 City Snapshot

Located in the heart of Metro Vancouver, British Columbia

Incorporated 29.17 km2 March 7, 1913 total land area

2016 DEMOGRAPHICS

GOVERNANCE 58,612 3,581 271 22,586 people business licences hectares of parks private City Council & trails dwellings

WHAT PORT COQUITLAM IS KNOWN FOR

PoCo Leader in waste Traboulay Family-friendly Pride management PoCo Trail neighbourhoods 7 members of Council provide leadership, set policies and establish budgets

Structure

Chief Administrative Offi cer Corporate Support Hometown of Using technology Quaint downtown & Terry Fox to engage citizens small-town charm Development Services Engineering & Public Works Finance Port Coquitlam is a happy, vibrant, safe community with healthy, engaged Fire & Emergency Services VISION residents and thriving businesses, supported by sustainable resources and services. Human Resources Recreation We strive to do it right by researching, planning, building and executing well-balanced solutions. MISSION RCMP

8 Annual Report 2016 Economic Snapshot

CONSTRUCTION PERMIT VALUE Total $ value – new construction BUSINESS STATISTICS Total $ value – improvements $160 million Business licences issued $140 million $120 million 3,204 Source: 2012 Bylaw $100 million 2013 3,178 Services $80 million 3,261 $60 million 2014 $40 million 2015 3,438 $20 million 2016 3,581 $0 2012 2013 2014 2015 2016 0 1000 2000 3000 4000

NEW CONSTRUCTION 2016: IMPROVEMENTS 2016: Top sectors based on 2016 licences $132 MILLION $23 MILLION Institutional Accessory ($19.2 mill) ($0.47 mill) Single/two Institutional Single/two family ($4 mill) ($3.5 mill) Home-based General Out-of-town Gen. Swimming Pool family ($17.5 mill) (801) (785) Contractor (690) ($49,000) Multi-family Structure ($1.8 mill) Industrial ($40,000) ($8.8 mill) Commercial Commercial Manufacturing Professional Retail ($1.1 mill) (263) Person (213) (169) Multi-family Industrial ($6.4 mill) ($84.9 mill) ($7.3 mill)

RESIDENT STATISTICS Port POPULATION AND DWELLINGS Coquitlam BC Source: • 93% are Canadian citizens Population in 2016 58,612 4,648,055 Statistics • 29% were born outside of Canada Population in 2011 55,958 4,400,057 Canada - 2011 and • 68% say English is mother tongue 2011 to 2016 population change (%) 4.7 5.6 2016 Census Note: Census population Total private dwellings 2016 22,586 2,063,417 estimates are not consistent • Average no. of persons/family: 2.7 Total private dwellings 2011 21,533 1,945,365 with municipal and regional • 78% of homes are owned estimates. Population density per sq. km 2016 2,009.4 5.0 Population density per sq. km 2011 1,931.3 4.8 • 90% at same address 1 year ago Land area (square km) 29.17 922,509.29 • 63% at same address 5 years ago

AGE DISTRIBUTION • 55% have some post-secondary education Ages Male Female % %

* Percentage distribution All 28,960 29,650 100.0%* 100.0%* • Median household income: based on $72,563 published 0-14 years 5,095 4,655 16.6% 14.9% totals, 15-24 years 3,930 3,545 12.7% 11.8% • 66.2% are employed both sexes. Source: 25-44 years 7,665 8,040 26.8% 25.9% Statistics 45-64 years 8,850 9,341 31.0% 29.2% Canada - Source: Statistics Canada, 2011 2016 Census. 65+ years 3,410 4,060 12.7% 18.3%

City of Port Coquitlam 9 2016 Highlights

NICOLA AVENUE COMPLETION Completed the long- awaited “missing link,” a 120 m stretch of roadway linking the Dominion Triangle shopping areas. ILLUMINATING CITY HALL COMMUNITY REC COMPLEX Added programmable • Selected design-build partner Ventana Construction LED lights to City Hall to through a competitive process. showcase its architecture • Finalized project design and funding strategy. and recognize holidays • Set up stakeholder group to provide feedback and and occasions with engage community during construction. different colour schemes.

OCP UPDATE NEW CULTURAL PLAN Continued the Offi cial Completed a plan that will Community Plan guide arts and cultural update with a review events, programs, services of agricultural policies, and facility operations over housing options in the next decade. established single-family GETTING PREPARED areas, and the Downtown • Introduced a Disaster Action Plan. INFRASTRUCTURE RENEWAL Recovery Plan to Adopted a two-year capital plan help the community that includes 14 km of road work, recover after a disaster. Centennial Pool upgrades, a portion of • Completed the Community Recreation Complex, an emergency and other infrastructure projects. communications plan.

DEDICATED RCMP UNIT Hired four offi cers for a Uniformed Crime Reduction Unit to increase police visibility and cover crime hotspots CITY AMBASSADORS in Port Coquitlam. POCO GRAND PRIX Sent ambassadors to • Held a successful inaugural event featuring neighbourhoods and professional sport, family fun and entertainment. events to educate people • Attracted more than 5,000 spectators, 2,500 on sorting waste, securing viewers of streamed footage, 26 sponsors, 200-plus waste against bears and volunteers, 250 professional riders, 200-plus Kids’ sprinkling regulations, to Race riders, 22 Corporate Challenge teams, and 29 improve compliance. Grand Prix Expo trade show entries.

10 Annual Report 2016 Giving Back

Giving back is a way of life in Port Coquitlam, among the members of our community as well as our City employees.

Above left, community volunteers were celebrated at the 2016 Volunteer Recognition Awards. Above right, one of several activities by the City staff Boots on the Ground team: volunteering at a water station at the 2016 Terry Fox Hometown Run. Community Volunteers Many volunteers and organizations work hard to as citizen advisors to City Council. Our website, make our community a better place. Because of their www.portcoquitlam.ca/volunteer, features volunteer efforts, Port Coquitlam is a safer, healthier and more opportunities and online registration. complete community, with an abundance of PoCo Each April during National Volunteer Week, we Pride: that special combination of community spirit celebrate all volunteers in our city with a Volunteer and pride that is unique to Port Coquitlam. Recognition Awards & Tribute and other events. The The City of Port Coquitlam provides opportunities staff Boots on the Ground team volunteered 78 hours for citizens to volunteer in all aspects of civic life, for the PoCo Grand Prix, Terry Fox Hometown Run from assisting with recreation programs to serving and Tri-City Transitions Society.

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 offi ce fundraiser, and many also volunteer in their spare time. Key 2016 activities: • Firefi ghters raised $38,815 and volunteered more than 1,891 hours to support a variety of causes: · $14,643 for prostate cancer research and Staff donated more than $59,000 and about 2,000 hours men’s health initiatives through Movember. of time, including $5,372 for the Burn Fund (above). · $5,372 for the BC Professional Fire Fighters Burn Fund through Christmas tree chipping • The annual staff United Way campaign raised and the Canada Day salmon barbecue. $10,291.90 through pledges, vacation day · $14,000 for Muscular Dystrophy Canada donations and various special events. through a boot drive. • A Week of Giving campaign raised $8,722.97 in · $4,800 for the BC Burn Unit through a slow- pledges for a variety of charities. pitch tournament beer garden and cook shack. • The staff Boots on the Ground team volunteered · Also volunteered for events supporting the 78 hours for the PoCo Grand Prix, Terry Fox Terry Fox Foundation, Fire Fighters Burn Hometown Run and Tri-City Transitions Society. Fund, BC Children’s Hospital, First Cause • Staff raised $1,286.98 for BC Children’s Hospital Ride, Taylor Hart family and the City. through Jeans Day.

City of Port Coquitlam 11 Strategic Direction

The City’s policy, operations and fi nancial 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 VISION 2020 STRATEGIC OUTCOMES COUNCIL PRIORITIES City’s departments Sustainable Future – Addresses Organizational Development – (described in fi nancial health, environmental health, Develop the organization and increase Department social health and sustainable services. employee engagement in order to improve customer service. Overviews, starting Sense of Community – Addresses on page 15) is community spirit, community Infrastructure – Maximize the life aligned with the inclusiveness/diversity and community of infrastructure assets (e.g. roads following: health. and buildings) and save for their replacement. Economic Strength – Addresses business strength, employment, access/ Community Recreation Complex – transportation and agricultural land. Plan for a new Community Recreation Complex on 15 acres of City land in Community Well-being – Addresses the downtown that includes the Port community safety, parks/natural areas, Coquitlam Recreation Complex and waste management and utility services. former works yard.

Strategic Service Delivery – Addresses staff productivity/effectiveness, transparency/public confi dence and healthy work environment.

12 Annual Report 2016 Letter of Transmittal

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LETTER OF TRANSMITTAL

June 20, 2017 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, 2016. The purpose of this report is to publish an Annual Report pursuant to Section 98 of the Community Charter to share the City’s accomplishments, activities and financial results for the past year and goals for the upcoming year.

Preparation and presentation of the Financial Statements (Statements) and related information in the 2016 Annual Report 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 senior Financial & Intergovernmental (FIG) Committee.

The audit firm of KPMG LLP, appointed by Council, has expressed its opinion that the Statements prepared by management fairly present the financial position of the City as at December 31, 2016, and the results of 2016 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 of the City are appropriately accounted for and adequately safeguarded. Expenditures and revenues are analyzed regularly by departments and finance staff, and updates are provided to Council on a quarterly basis and as required.

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, the Greater Vancouver Sewerage and Drainage District for sewage disposal, and Metro Vancouver for co-ordination of common services with other municipalities.

Continuous improvement is a focal point for our organization, as we continually strive to find ways to offer more value to our taxpayers. This focus continued to be reflected in our work in 2016.

Through our ongoing implementation of the Agresso Financial System – including the payroll component in 2016 – we have automated more processes and transformed the paper-driven work of the past into a more efficient electronic workflow. Agresso also brings information to our fingertips, providing a rich and instant source of data to facilitate strategic decision-making by staff and Council.

We also made significant progress on the Community Recreation Complex Project (CRCP), which will bring new and enhanced amenities to our downtown. We achieved both the final design and a balanced funding plan for the project that includes $17 million in land sales revenue, $13.6-million in federal contributions, a $25 parcel tax from 2017 to 2020, and phased-in property tax increases. Construction began in early 2017.

www.portcoquitlam.ca

City of Port Coquitlam 13 Letter of Transmittal





The City’s work and finances in 2016 were once again guided by the Vision 2020 Corporate Strategic Plan and Council's three priorities: developing the organization and increasing employee engagement to improve customer service; maximizing the life of infrastructure assets and saving for their replacement; and planning for the CRCP.

FINANCIAL OVERVIEW The City has taken a long-term approach to its finances for a sustainable future. This approach requires setting aside sufficient funds to replace assets consumed in the year as well as saving for the eventual replacement of assets. Positive steps taken to address future infrastructure funding challenges have included collecting funds in long-term reserves, and establishing a Budget & Infrastructure (BIN) advisory committee to the FIG Committee to consider improvements to our budgeting and capital planning process. The difference between 2016 revenues and 2016 expenses results in a 2016 annual surplus amount of $16.1 million (2015 - $13.9 million) and increases the City’s accumulated surplus from the 2015 balance of $704.1 million up to $720.2 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 $720.2 million ending balance in 2016, only the $116.8 million related to restricted and unrestricted reserves is available for use. The remaining $603.4 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. Annual operations remained constant in the year. 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. The capital project focus was again on essential maintenance, committed projects and multi-year initiatives while the BIN committee continued its work. The City continues to see growth and development in both established and newer areas, such as the Dominion Triangle. In 2016, the City issued building permits for projects with a record value of $155 million. 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

14 Annual Report 2016 DEPARTMENT overviews

15 16 Annual Report 2016 Offi ce of the Chief Administrative Offi cer

The Chief Administrative Offi cer provides organizational leadership to all City staff.

KEY RESPONSIBILITIES

• Direct and coordinate the activities of all • Oversee the implementation of the City’s vision, departments. plans and priorities by: • Assist Council to establish the City’s vision, · ensuring effective policies are in place and plans and priorities. adhered to, and • Oversee the development of revenue-generation · providing leadership that enables an engaged initiatives and other strategic projects. and productive municipal workforce.

STRATEGIC OUTCOME 2016 PERFORMANCE MEASURES OR COUNCIL PRIORITY Community Recreation • Worked with Council and Recreation Complex planning team to fi nalize the Complex design and fi nancing strategy in preparation for construction in 2017. • Continued to oversee, develop and participate in initiatives that improve effi ciency and effectiveness and move the organization in the desired direction (e.g. strategic plans, Continuous Improvement Assessments and culture-change Strategic Service Delivery activities). and Organizational • Reviewed new process used to develop 2016 budget and adjusted as necessary for Development 2017. • Worked with Human Resources on initiatives intended to build the City team at all levels, get input from staff, and keep staff informed about City projects.

Sense of Community • Oversaw planning and delivery of inaugural PoCo Grand Prix cycling event.

• Worked with Revenue Committee to oversee and act upon opportunities for the Strategic Service Delivery City to realize revenue, e.g. from advertising and sponsorship.

STRATEGIC OUTCOME 2017 GOALS OR COUNCIL PRIORITY Community Recreation • Oversee initial phases of construction of Community Recreation Complex. Complex • Oversee development of City-wide asset management plan and long-term sustainable infrastructure management plan. • Work to resolve the claim on City-owned land by the Kwikwetlem First Nation and respond to their request for services to their reserve. Strategic Service Delivery • Continue to work with staff to build capacity, improve customer services and develop a positive working culture. • Work with Human Resources to support staff development opportunities. • Conclude collective bargaining with CUPE staff.

See www.portcoquitlam.ca/departments to learn more about City departments.

City of Port Coquitlam 17 18 Annual Report 2016 Corporate Support

Corporate Support brings together services and functions that support the organization as a whole.

KEY RESPONSIBILITIES • Communications, legislative and administrative STATS & FACTS functions • Website visits: 670,215 • Bylaw enforcement (including community policing) • Social media followers (Facebook, Twitter • Technology and online services and Instragram): 16,189 • Council meetings, City records and elections • E-Update subscribers: 2,086 • City land holdings • Freedom of Information requests: 48 • Bylaws processed: 42 DIVISIONS • IS customer support requests: 1,982 • Bylaw Services • Desktop computers: 267 • Communications & Administrative Services • Mobile devices: 186 • Community Policing • Business licences issued: 3,581 • Corporate Offi ce • Dog licences issued: 5,153 • Information Services

STRATEGIC OUTCOME 2016 PERFORMANCE MEASURES OR COUNCIL PRIORITY • Completed renovaton of Coast Meridian Community Police Station. • Continued to develop bylaw amendments in response to changes to Health Community Well-being Canada medical marijuana regulations. • Completed a crisis communications plan to improve the fl ow of communications during crises of all type and scale. • Engaged residents in community-building City initiatives, such as the inaugural Sense of Community PoCo Grand Prix, a day of sport, entertainment and family fun. • Educated residents about bylaw-compliance initiatives to promote proper waste- sorting, securing waste from bears and following the water-use regulations. Strategic Service Delivery • Modernized Freedom of Information processes, including online requests. • Continued to roll out the new Agresso cloud-based fi nancial system.

• Supported economic development with the launch of Shop PoCo, a searchable Economic Strength online directory of all licensed Port Coquitlam businesses.

STRATEGIC OUTCOME 2017 GOALS OR COUNCIL PRIORITY • Launch new City website that better integrates with mobile devices and online services. Strategic Service Delivery • Develop an app to provide access to a variety of City services. • Roll out new meeting agenda software to all committees. • Implement new records management software in all departments. • Develop new regulations for homeless camps in parks. Community Well-being • Upgrade Emergency Operations Centre hardware.

Community Well-being • Enforce proper waste sorting and securing waste to keep bears and wildlife away. and Sustainable Future

See www.portcoquitlam.ca/departments to learn more about City departments.

City of Port Coquitlam 19 20 Annual Report 2016 Development Services

Development Services guides the growth and development of the community.

KEY RESPONSIBILITIES • Manage the growth and development of the City. STATS & FACTS • Institute sustainable and integrated land use and • Planning applications processed: 75 development policies. • Benchmark development permit application • Provide guidance on land use and development review time: fi ve months matters. • Development engineering applications • Promote economic development. processed: 446 • Liaise with First Nations, Business Improvement • Building permits for new construction: 345 Association and Chamber of Commerce. · Total construction value: $155 million · Number of new dwelling units: 595 DIVISIONS • Building (including Plumbing) • Development Engineering • Planning

STRATEGIC OUTCOME 2016 PERFORMANCE MEASURES OR COUNCIL PRIORITY Community Recreation • Managed the planning for the new Community Recreation Complex, including Complex fi nalizing the design. • Improved effi ciency and customer service with online scheduling of building inspections. Strategic Service Delivery • Implemented recommendations of the Continuous Improvement Assessment on customer service. • Continued the Offi cial Community Plan update, including exploring housing options in existing single-family areas and updating agricultural policies. Sustainable Future • Adopted new policies and regulations for temporary buildings. • Recruited a new Environmental Coordinator to develop and implement environmental policies, initiatives and projects. • Started an update of the Downtown Action Plan to identify ways to attract a broader mix of services and amenities to the downtown. Economic Strength • Updated liquor policy and regulations to align with changes to provincial liquor laws and emerging business trends.

STRATEGIC OUTCOME 2017 GOALS OR COUNCIL PRIORITY • Complete the Offi cial Community Plan update, including public consultation. • Complete the Downtown Action Plan and develop a Northside Commercial Plan. • Revise the Building and Plumbing Bylaw to align with Building Act changes. Sustainable Future • Update the Subdivision Servicing Bylaw in consultation with local developers. • Update the Environmental Strategic Plan. • Update tree policies and regulations in consultation with the community. Community Well-being • Implement parklets (seating areas) downtown and in the northside commercial area.

See www.portcoquitlam.ca/departments to learn more about City departments.

City of Port Coquitlam 21 22 Annual Report 2016 Engineering & Public Works

Engineering & Public Works provides and maintains essential municipal services and infrastructure.

KEY RESPONSIBILITIES

• Plan and manage City infrastructure projects. STATS & FACTS • Plan and operate the City transportation network. • Public requests and inquiries: 6,005 • Maintain the PoCoMAP geographic information system. • PoCoMAP public visits: 22,591 • Collect garbage, recycling and green waste. • Waste collection: • Provide and maintain City parks, trails and open spaces. · Single-family units: 14,632 • Manage the City fl eet. · Multi-family units: 4,033 • Provide water, sewer and drainage services. · Institution or business: 150 • Provide engineering customer services. • Waste diverted from landfi ll: 67% diversion rate DIVISIONS • Water supplied: 9 million cubic metres • Administration • Capital projects: 24 projects and $1.56 • Capital Projects million in expenditures • Infrastructure Planning • PoCo Waste-Line registrants: 4,904 • Public Works (including streets, parks, fl eet, and solid waste, sewer, water and drainage utilities)

STRATEGIC OUTCOME 2016 PERFORMANCE MEASURES OR COUNCIL PRIORITY Community Recreation • Worked with the project team to fi nalize the design and plan for the start of Complex construction in 2017. • Improved access by completing Nicola Avenue in the Dominion Triangle network, Economic Strength and designing upgrades to Pitt River Road and McLean Avenue. • Completed structural repairs on the Coquitlam River bridge on Lougheed Sustainable Future Highway to add fi ve years to the bridge’s lifespan. • Reviewed waste collection zones for opportunities for effi ciency. • Introduced a two-year capital program for more timely and cost-effective project completion, following a year-long review of the capital planning process. Strategic Service Delivery • Hired community ambassadors to educate residents amd promote compliance related to waste sorting, sprinkling regulations and securing waste against bears.

Community Well-being • Received public kudos for responsive and effi cient snow and ice removal.

STRATEGIC OUTCOME 2017 GOALS OR COUNCIL PRIORITY Community Recreation • Start four-year construction of the Community Recreation Complex and related Complex improvements in downtown Port Coquitlam. • Develop a long-term sustainable infrastructure plan. Sustainable Future • Manage the 2017-2018 capital program. • Upgrade Centennial Outdoor Pool for competition and community use. Community Well-being • Begin rehabilitation of Blakeburn Lagoons into a natural park. Economic Strength • Widen and improve Pitt River Road and McLean Avenue east of Mary Hill Road.

See www.portcoquitlam.ca/departments to learn more about City departments.

City of Port Coquitlam 23 24 Annual Report 2016 Finance

Finance provides fi nancial services to citizens, City departments and City Council.

KEY RESPONSIBILITIES • Provides fi nancial planning, accounting, payroll, STATS & FACTS purchasing and revenue collection services. • Annual budget: $97 million • Administrates operating funds. • Billing and collection value: $80 million • Risk management (insurance and claims • Tax customers: 20,375 administration). • MyPortCoquitlam registrants: · Business Licences: 33 DIVISIONS · Development Services: 76 • Common Services · Dog Licences: 186 • Finance Services · Property Taxes: 1,314 · Accounting · Water and Sewer: 1,362 · Financial Planning · Electronic Home Owner Grants: 8,742 · Payroll · Purchasing · Revenue Services

STRATEGIC OUTCOME 2016 PERFORMANCE MEASURES OR COUNCIL PRIORITY Community Recreation • Provided fi nancing options and analysis to assist with fi nalizing a funding strategy Complex for the new Community Recreation Complex. • Assisted in the Budget & Infrastructure advisory committee’s in-depth review of Infrastructure and the City’s long-term capital planning, resulting in a two-year budget and capital Sustainable Future plan and other improvements. • Continued to develop and support enhanced fi nancial functions through Sustainable Future implementation of the new Agresso cloud-based fi nancial system. • Earned Government Finance Offi cer Association awards for both fi nancial reporting and budget. Strategic Service Delivery • Implemented an improved payroll system through the Agresso fi nancial system. • Partnered with communications to promote the use of MyPortCoquitlam online billing and license renewals.

STRATEGIC OUTCOME 2017 GOALS OR COUNCIL PRIORITY Infrastructure and • Work with other departments on development of a City-wide asset management Sustainable Future plan and long-term sustainable infrastructure management plan. • Work with other departments and research best practices to develop corporate performance measures. • Revise the Purchasing Policy based on recommendations from the Continuous Improvement Assessment. Strategic Service Delivery • Ensure City compliance with the new Living Wage Policy. • Continue to promote MyPortCoquitlam for online property/tax bills access. • Obtain Government Finance Offi cer Association awards for both fi nancial reporting and budget.

See www.portcoquitlam.ca/departments to learn more about City departments.

City of Port Coquitlam 25 26 Annual Report 2016 Fire & Emergency Services

Fire & Emergency Services provides for the preservation of life, property and the environment in Port Coquitlam.

KEY RESPONSIBILITIES • Respond to fi re, medical and other emergencies. STATS & FACTS • Conduct fi re investigations. • Total calls: 4,030 • Provide public education programs. • Total fi res: 145 • Develop and implement the City’s Operational • Hazardous materials calls: 86 Emergency Response Plan. • Medical calls: 2,267 • Deliver public emergency preparedness education • Motor vehicle accidents: 359 and awareness. • Public service/assist: 222 • Fire bylaw inspections: 2,862 DIVISIONS • Emergency preparedness course • Administration attendees: 1020 • Emergency Preparedness • Emergency preparedness volunteer • Fire Suppression hours: 2,270 • Training • Protective Services & Public Education

STRATEGIC OUTCOME 2016 PERFORMANCE MEASURES OR COUNCIL PRIORITY • Implemented a Disaster Recovery Plan to help the community recover more Community Well-being quickly following a disaster. and Strategic Service • Updated the Community Resource Directory to identify available post-disaster Delivery services in the community. • Developed effi ciencies in customer service through one of the City’s Continuous Strategic Service Delivery Improvement Assessments. • Developed strategies to address the impact of increasing medical response calls. • Completed a review of the training model and developed a plan for improvements. Sustainable Future • Continued work on the development of a business continuity and sustainability plan and provided business continuity training for the community. • Continued to focus on repair and maintenance of fi re facilities.

STRATEGIC OUTCOME 2017 GOALS OR COUNCIL PRIORITY • Add fi ve new fi refi ghters to keep up with increasing call volume. • Appoint an Acting Public Education Offi cer. Community Well-being • Develop a community risk-reduction program for residential properties with a focus on high-risk clients and properties. • Transition the training model to refl ect new industry standards and certifi cation Community Well-being requirements. and Strategic Service • Review emergency communication system to ensure compatability with multiple Delivery jurisdictions and ensure ongoing responder safety. • Review fi re inspection model to create effi ciencies and align with Fire Safety Act.

See www.portcoquitlam.ca/departments to learn more about City departments.

City of Port Coquitlam 27 28 Annual Report 2016 Human Resources

Human Resources serves both internal and external customers by providing specialized advice and assistance in all facets of people management.

KEY RESPONSIBILITIES STATS & FACTS • Champion City-wide initiatives that build on a • Total number of employees: 552 positive and inclusive organizational culture, which (285 full-time, 74 part-time, 193 casual) places employees in the best position to provide • Average employee age: excellent support and service to citizens and the · Casuals: 29.51 years business community. · Part-time: 33.97 years • Recruit City staff and ensure succession planning. · Full-time: 45.48 years • Manage the City’s labour relations. · Fire suppression: 38.67 years • Coordinate the City’s occupational health and safety · Fire non-suppression: 46.96 years program. · Exempt (non-union): 49.29 years • Plan and implement staff training and development. • Average length of service: 9.5 years • Administer benefi ts, wages and salaries. • External hires: 80 • Internal appointments: 78

STRATEGIC OUTCOME 2016 PERFORMANCE MEASURES OR COUNCIL PRIORITY • Supported Continuous Improvement Assessments for customer service in inspection and compliance, and business licensing. • Commenced collective bargaining with CUPE staff, and continued to work with CUPE to ensure union jobs meet current and future City needs. • Saw the successful completion of the fi rst class of graduates through the two-year Organizational staff leadership program offered in conjunction with BCIT, and started the second Development and cohort. Strategic Service Delivery • Launched a paperless recruitment system that provides better access to data for hiring decisions, makes the application experience more user-friendly and signifi cantly reduces paper and printing costs and time. • Developed an implementation plan for the City’s new Living Wage Policy. • Implemented the Human Resources module of the new Agresso cloud-based fi nancial system.

STRATEGIC OUTCOME 2017 GOALS OR COUNCIL PRIORITY • Complete collective bargaining with CUPE staff. • Conduct an employee engagement survey. • Implement a supervisory skills program with Public Works. Strategic Service Delivery • Implement performance planning for CUPE supervisors. • Review the Attendance Management Program and industry best practices for reducing absenteeism. • Implement a “brand PoCo” strategy to attract new employees.

See www.portcoquitlam.ca/departments to learn more about City departments.

City of Port Coquitlam 29 30 Annual Report 2016 Recreation

The Recreation Department promotes healthy lifestyles, social engagement and community development.

KEY RESPONSIBILITIES • Provide recreation, sport, fi tness, social, arts and STATS & FACTS culture programs, services and special events. • Courses offered: 5,638 • Coordinate volunteer opportunities and training. • Program registrations: 28,647 • Manage reservations for City parks and facilities. · Online registrations: 14,446 • Support community organizations aligned with • Program hours provided: 33,408 department services, and administer grant programs. • Drop-in program participants: 133,098 • Manage building maintenance and lifecycle • Volunteers: 477 management for 26 City facilities. • Wilson Centre memberships sold: 1,089 • Library items borrowed: 353,817 DIVISIONS • New library cards issued: 2,567 • Recreation Services • Residents with active cards identifying • Cultural Development & Community Services Terry Fox as home library: 18,377 • Facility Services

STRATEGIC OUTCOME 2016 PERFORMANCE MEASURES OR COUNCIL PRIORITY Community Recreation • Continued to support the planning and design of the new Community Recreation Complex Complex, including maintaining facility operations during construction. Economic Strength and • Organized and delivered a world-class inaugural PoCo Grand Prix event that drew Sense of Community more than 5,000 people and surpassed expectations.

Sense of Community, • Completed the Cultural Policy and Plan update and began to implement strategies. Sustainable Future and • Reviewed the model for planning and delivering community and special events. Strategic Service Delivery

Sense of Community and • Provided staff diversity training with a focus on inclusion of individuals with Strategic Service Delivery disabilities, mental health or addiction challenges.

Sustainable Future and • Expanded the workplace Energy Action Team to include green waste and Strategic Service Delivery recycling, and renamed it to Green Recycling Energy Action Team (GREAT).

STRATEGIC OUTCOME 2017 GOALS OR COUNCIL PRIORITY Community Recreation • Ensure facility operations are maintained, reduce public impact and engage Complex stakeholders. Livable Community, • Implement the Cultural Plan – increase activity at Leigh Square and establish a Strategic Service Delivery Festival Committee and a Cultural Round Table.

Economic Strength and • Build on the successes of 2016 for the second annual PoCo Grand Prix, including Sense of Community broadening participation by local businesses and the community. • Explore locations and partnership opportunities for a new community garden. Community Well-being • Complete upgrades to infrastructure and play features at Sun Valley Park.

See www.portcoquitlam.ca/departments to learn more about City departments.

City of Port Coquitlam 31 32 Annual Report 2016 RCMP

Coquitlam RCMP serves more than 200,000 residents across Anmore, Belcarra, Coquitlam and Port Coquitlam.

KEY RESPONSIBILITIES SERVICE AREAS • Reduce and prevent crime and protect citizens • RCMP and property through effi cient and effective • Public Safety Building response-to-call, enforcement and investigations as well as strategic outreach and education initiatives. For more information about Coquitlam RCMP, • Identify and address emerging public safety issues. visit www.portcoquitlam.ca/policing or • Work in partnership with the City and citizens to www.coquitlam.rcmp.ca. ensure Port Coquitlam is a healthy, vibrant and safe community.

STATS & FACTS 2015 2016 % Data Notes and Qualifi ers: Crime Types totals totals change • Data extracted in April 2017; in cases of discrepancy, Person Crimes1 894 913 +2 the most current data will take precedence. Property Crimes2 9,096 7,864 -13 • Statistics are for the Coquitlam RCMP jurisdiction Other (Breach of Probation) 400 476 +19 (Coquitlam, Port Coquitlam, Anmore and Belcarra). Drugs3 268 258 -4 • Criminal Code offence data are compiled using select Traffi c4 2,219 2,452 +11 PRIME BC fi les and are not comprehensive. • All data is subject to change based on investigational 1 Abduction, assault, attempted murder, murder (1st and 2nd factors and records data quality processes. degree), robbery, and sexual offences. • Data is collected using “most serious offence” 2 Arson, break and enter, fraud (including debit/credit card, and identity theft), mischief, possession of stolen property, scoring, consistent with Statistics Canada and BC theft, and theft of/from vehicle. Justice Ministry (Police Services Division) data 3 Illegal marijuana grow operations, cocaine (possession collection practices. and traffi cking), heroin (possession and traffi cking) and • Collision data is not complete as it only includes fi les methamphetamine (possession and traffi cking). where police attended and not all fi les reported to the 4 Collision (fatal, injury and property damage), dangerous operation, impaired operation (alcohol/drugs), prohibited driver, Insurance Corporation of British Columbia (ICBC). roadside prohibitions and immediate roadside prohibitions.

STRATEGIC OUTCOME 2016 PERFORMANCE MEASURES OR COUNCIL PRIORITY Community Well-being and • Hired four offi cers for a Uniformed Crime Reduction Unit that works to increase Strategic Service Delivery visibility and target crime hotspots in Port Coquitlam. • Continued special projects including distracted driving, pedestrian safety, crime Community Well-being prevention and anti-graffi ti. Strategic Service Delivery • Conducted resource effi ciency reviews to ensure value for taxpayer dollar. and Sustainable Future • Completed and began implementation of the 2016-2020 strategic plan.

STRATEGIC OUTCOME OR 2017 GOALS COUNCIL PRIORITY • Add three additional offi cers to Port Coquitlam’s Uniformed Crime Reduction Community Well-being and Unit that works to increase visibility and target crime hotspots. Strategic Service Delivery • Increase positive interactions between our team and the citizens we serve. • Reduce collisions related to high-risk groups and contributing factors..

City of Port Coquitlam 33 Page header

Text

34 Annual Report 2016 FINANCIAL section

35 Auditors’ Report to Mayor and Council

KPMG LLP Metro Tower I 4710 Kingsway, Suite 2400 Burnaby BC V5H 4M2 Canada Telephone (604) 527-3600 Fax (604) 527-3636

INDEPENDENT AUDITORS' REPORT

To the Mayor and Council of the Corporation of the City of Port Coquitlam We have audited the accompanying consolidated financial statements of the Corporation of the City of Port Coquitlam, which comprise the consolidated statement of financial position as at December 31, 2016, the consolidated statements of operations, change in net financial assets and cash flows for the year then ended, and notes, comprising a summary of significant accounting policies and other explanatory information. Management's Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity's preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG Canada provides services to KPMG LLP.

36 Annual Report 2016 Auditors’ Report to Mayor and Council

Corporation of the City of Port Coquitlam Page 2

Opinion In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Corporation of the City of Port Coquitlam as at December 31, 2016, and its consolidated results of operations, its change in consolidated net financial assets and its consolidated cash flows for the year then ended in accordance with Canadian public sector accounting standards.

Chartered Professional Accountants

June 20, 2017 Burnaby, Canada

City of Port Coquitlam 37 Consolidated Statement of Financial Position

AS AT DECEMBER 31, 2016 2016 2015 FINANCIAL ASSETS Cash and cash equivalents $ 7,535,890 $ 5,468,008 Investments Note 3 165,938,783 145,692,744 Accounts receivable Note 4 7,988,055 7,140,789 Due from other governments Note 5 287,825 310,402 181,750,553 158,611,943

LIABILITIES Accounts payable and accrued liabilities Note 6 12,750,321 10,131,023 Deferred revenues Note 7 10,576,583 10,244,066 Deposits Note 8 6,556,997 6,219,597 Development cost charges Note 9 32,317,681 27,916,031 Post-employment future benefi ts and Note 10 2,737,000 2,915,000 compensated absences Debt Note 11 21,672,308 22,241,280 86,610,890 79,666,997

NET FINANCIAL ASSETS 95,139,663 78,944,946

NON-FINANCIAL ASSETS Tangible capital assets Note 12 624,636,491 624,485,405 Inventories 329,998 584,139 Prepaid expenses 94,355 115,184 625,060,844 625,184,728

ACCUMULATED SURPLUS Note 13 $ 720,200,507 $ 704,129,674

Commitments and Contingencies Note 17 See accompanying Notes to the Consolidated Financial Statements

John Leeburn, MBA Karen Grommada, CPA, CMA Chief Administrative Offi cer Director of Finance

38 Annual Report 2016 Consolidated Statement of Operations

FOR THE YEAR ENDED DECEMBER 31, 2016

2016 2016 2015 Budget (Notes 2c and 20) REVENUES Taxation and other levies Note 19 $ 61,568,800 $ 60,688,988 $ 58,915,659 Utility charges 21,222,600 19,250,925 19,274,060 Sale of services 3,661,600 9,164,716 8,179,258 Contributions 4,190,600 7,304,634 3,793,559 Permits and licences 978,200 2,827,534 2,481,191 Investment income 1,675,000 2,717,310 2,176,755 Penalties and fi nes 138,400 438,730 375,350 Other revenue 3,169,200 1,263,701 248,775 Gain on disposals and write-downs - 230,593 4,187,942 $ 96,604,400 $ 103,887,131 $ 99,632,549

EXPENSES General government $ 8,871,104 $ 8,855,439 $ 8,629,553 Engineering and public works 17,922,499 17,491,505 16,267,492 Recreation 13,424,531 12,618,315 12,855,248 Police services 14,840,438 14,220,414 13,528,327 Fire and emergency services 11,032,540 11,135,010 10,541,505 Development services 3,275,545 2,884,493 2,986,839 Solid waste operations 3,389,400 3,191,623 3,447,295 Water operations 10,192,940 10,171,523 10,018,955 Sanitary sewer operations 7,750,803 7,247,976 7,409,129 $ 90,699,800 $ 87,816,298 $ 85,684,343

ANNUAL SURPLUS $ 5,904,600 $ 16,070,833 $ 13,948,206

ACCUMULATED SURPLUS, beginning of year 704,129,674 704,129,674 690,181,468

ACCUMULATED SURPLUS, end of year $ 710,034,274 $ 720,200,507 $ 704,129,674

See accompanying Notes to the Consolidated Financial Statements

City of Port Coquitlam 39 Consolidated Statement of Cash Flows

FOR THE YEAR ENDED DECEMBER 31, 2016

2016 2015 CASH PROVIDED (USED) BY: Annual surplus $ 16,070,833 $ 13,948,206 Items not involving cash: Developer contributions of tangible capital assets (4,072,926) (374,662) Amortization 11,831,408 12,035,385 Gain on disposal of tangible capital assets (230,593) (4,187,942) Non-cash post-employment future benefi ts and (178,000) (70,000) compensated absences Change in non-cash operating assets and liabilities Accounts receivable (847,266) 1,534,922 Due from other governments 22,577 292,712 Accounts payable and accrued liabilities 2,619,298 (2,763,203) Deferred revenues 332,517 (42,953) Deposits 337,400 (1,204,015) Development cost charges 4,401,650 1,486,491 Inventories 254,141 (12,225) Prepaid expenses 20,829 322,851 Cash provided by operating activities 30,561,868 20,965,567

FINANCING ACTIVITIES Debt repayment (568,972) (546,951) Cash used in fi nancing activities (568,972) (546,951)

CAPITAL ACTIVITIES Cash used to acquire tangible capital assets (11,295,897) (8,529,362) Cash received from disposals of tangible capital assets 3,616,922 5,526,278 Cash used in capital activities (7,678,975) (3,003,084)

INVESTING ACTIVITIES Purchase of investments (156,000,000) (135,000,000) Redemption of investments 135,753,961 117,060,309 Cash used in investing activities (20,246,039) (17,939,691)

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 2,067,882 (524,159) CASH AND CASH EQUIVALENTS, beginning of year 5,468,008 5,992,167 CASH AND CASH EQUIVALENTS, end of year $ 7,535,890 $ 5,468,008

See accompanying Notes to the Consolidated Financial Statements

40 Annual Report 2016 Consolidated Statement of Change in Net Financial Assets

FOR THE YEAR ENDED DECEMBER 31, 2016

2016 2016 2015 Budget (Notes 2c and 20)

Annual surplus $ 5,904,600 $ 16,070,833 $ 13,948,206 Acquisition of tangible capital assets (18,572,500) (11,295,897) (8,529,362) Developer contributions of tangible capital assets (1,000,000) (4,072,926) (374,662) Amortization of tangible capital assets 13,500,000 11,831,408 12,035,385 Gain on disposal of tangible capital assets - (230,593) (4,187,942) Proceeds on disposal of tangible capital assets - 3,616,922 5,526,278 Use (acquisition) of inventories - 254,141 (12,225) Use of prepaid expenses - 20,829 322,851

INCREASE IN NET FINANCIAL ASSETS (167,900) 16,194,717 18,728,529 NET FINANCIAL ASSETS, beginning of year 78,944,946 78,944,946 60,216,417 NET FINANCIAL ASSETS, end of year $ 78,777,046 $ 95,139,663 $ 78,944,946

See accompanying Notes to the Consolidated Financial Statements

City of Port Coquitlam 41 Notes to the Consolidated Financial Statements

YEAR ENDED DECEMBER 31, 2016

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. Signifi cant Accounting Policies The consolidated fi nancial 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 fi nancial 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 specifi ed 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 defi ne 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 defi nes the funding source for each reserve and their usage. Trust funds are those that are administered for certain benefi ciaries. In accordance with PSAB recommendations, trust funds are not included in the City’s consolidated fi nancial 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 fi nancial assets refl ects the 2016 Financial Plan Bylaw adopted by City Council on May 9, 2016. 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 defi nition 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.

42 Annual Report 2016 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 benefi ts and compensated absences also accrue to City employees. Liabilities related to these benefi ts are actuarially determined based on service and best estimates of retirement ages and expected future salary and wage increases. Liabilities under these benefi ts plans are accrued based on projected benefi ts as the employees render services necessary to earn the future benefi ts. K. DEBT Debt is recorded in the consolidated fi nancial statements net of sinking fund assets. L. NON-FINANCIAL ASSETS Non-fi nancial 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 fi nance the construction of tangible capital assets. Leases, which transfer substantially all of the benefi ts 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 fi nancial statements. Inventories Inventories held for consumption or resale are recorded at the lower of cost and replacement cost.

City of Port Coquitlam 43 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 benefi ts 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 fi nancial 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 fi nancial statements and the reported amounts of revenue and expenses during the reporting period. Signifi cant areas requiring the use of management estimates relate to the determination of post-employment benefi ts, 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 refl ected in the consolidated fi nancial 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 defi ned as a distinguishable activity or group of activities of a government for which it is appropriate to separately report fi nancial 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 in 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, 2017 to December, 2017 and have rates of return ranging from 1.65% to 2.07% (2015 - 1.45% to 2.12%). The carrying value of the Municipal Finance Authority Intermediate Fund at December 31, 2016 was $5,938,783 (2015 - $ 5,692,744) and the market value at December 31, 2016 was $5,901,367 (2015 - $5,836,443).

2016 2015 Short-term deposits $ 160,000,000 $ 140,000,000 Municipal Finance Authority Intermediate Fund 5,938,783 5,692,744 $ 165,938,783 $ 145,692,744

44 Annual Report 2016 Notes to the Consolidated Financial Statements

4. Accounts Receivable 2016 2015 Property tax and utility receivable $ 2,360,428 $ 2,674,639 Accounts receivable 1,120,756 952,362 Development cost charges receivable 2,510,646 1,620,826 Other 1,996,225 1,892,962 $ 7,988,055 $ 7,140,789

5. Due from Other Governments

2016 2015 Government of Canada $ 229,952 $ 221,957 Province of British Columbia 57,747 84,631 Other governments 126 3,814 $ 287,825 $ 310,402

6. Accounts Payable and Accrued Liabilities 2016 2015

Accounts payable and accrued liabilities $ 9,834,004 $ 7,522,812 Wages and benefi ts payable 2,600,561 1,987,623 Statutory holdbacks 309,287 107,893 Due to other governments 6,469 512,695 $ 12,750,321 $ 10,131,023

7. Deferred Revenues Deferred revenues relate to amounts deposited in advance of services performed.

December 31, Revenue December 31, Additions 2015 earned 2016

Property tax and utility charges $ 7,248,183 $ 13,514,159 $ (13,124,822) $ 7,637,520 Programs and services 2,027,314 2,154,334 (2,224,511) 1,957,137 Other 968,569 997,468 (984,111) 981,926 $ 10,244,066 $ 16,665,961 $ (16,333,444) $ 10,576,583

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.

City of Port Coquitlam 45 Notes to the Consolidated Financial Statements

9. Development Cost Charges

December 31, Third Party Interest Capital December 31, AREA 1 2015 Contributions Allocation Expenditures 2016 Drainage $ 4,042,353 $ 23,443 $ 78,244 $ - $ 4,144,040 Transportation 8,969,887 202,985 174,987 (9,361) 9,338,498 Parks 3,580,147 (3,199) 66,809 55,241 3,698,998 Water 4,616,732 10,013 89,200 - 4,715,945 Sanitary 1,446,471 6,215 27,977 - 1,480,663

AREA 2

Drainage (119,624) 145,204 (908) - 24,672 Transportation 831,433 3,767,091 47,454 (512,412) 4,133,566 Parks 1,462,514 75,498 28,544 (42,596) 1,523,960 Water 1,278,962 73,921 25,397 - 1,378,280 Sanitary 795,056 45,346 15,782 - 856,184 Parks interest 1,012,100 - 19,450 (8,675) 1,022,875 $ 27,916,031 $ 4,346,517 $ 572,936 $ (517,803) $ 32,317,681

10. Post-Employment Future Benefi ts and Compensated Absences The City provides sick leave and retirement benefi ts 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 benefi ts represent the City’s share of the cost to provide eligible employees with severance pay upon retirement. The amount recorded for these benefi ts is based on an actuarial valuation done by an independent fi rm of actuaries using a projected benefi t actuarial valuation method pro-rated on services. The most recent actuarial valuation of the City’s future benefi ts was completed as at December 31, 2014 and the results have been extrapolated to December 31, 2016. Information regarding the City’s obligations for these benefi ts is as follows:

Non-vested Severance 2016 2015 Sick Leave

Accrued benefi t obligation, beginning of year $ 641,000 $ 2,898,000 $ 3,539,000 $ 3,687,000 Service cost 40,000 162,000 202,000 197,000 Interest cost 20,000 87,000 107,000 109,000 Benefi t payments (52,000) (532,000) (584,000) (471,000) Amortization of net actuarial losses (12,000) 170,000 158,000 17,000 Accrued benefi t obligation, end of year 637,000 2,785,000 3,422,000 3,539,000 Unamortized actuarial loss (340,000) (345,000) (685,000) (624,000) Accrued benefi t liability $ 297,000 $ 2,440,000 $ 2,737,000 $ 2,915,000

The unamortized actuarial loss is amortized over a period equal to the employees’ average remaining service lifetime. The signifi cant actuarial assumptions adopted in measuring the City’s accrued benefi t liability are as follows:

2016 2015

Discount rates 3.20% 3.00% Expected future infl ation 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

46 Annual Report 2016 Notes to the Consolidated Financial Statements

11. Debt The City incurs debt through the Municipal Finance Authority (MFA) in accordance with the Community Charter to fi nance 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:

2016 2015 Sinking Fund Gross Debt Net Debt Net Debt Asset Coast Meridian Overpass, $ 25,000,000 $ 3,327,692 $ 21,672,308 $ 22,241,280 Bylaw 3611, 4.13%, due 2039

Future payments on net outstanding debt over the next fi ve years and thereafter are paid from the General Fund and are as follows:

Debt Payments 2017 $ 1,478,252 2018 1,478,252 2019 1,478,252 2020 1,478,252 2021 1,478,252 Thereafter 26,608,547 Principal and interest payments 33,999,807 Amount representing interest 12,327,499 Debt principal repayments $ 21,672,308

The City paid $909,280 net of earnings on debt reserve deposit, in interest on debt during the year (2015 - $931,301).

City of Port Coquitlam 47 Notes to the Consolidated Financial Statements

12. Tangible Capital Assets a. Assets Under Construction (AUC): Assets under construction having a value of $4,646,266 (2015 - $5,620,560) 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 $4,072,926 (2015 - $374,662). Please note: Note 12 spans two pages.

AS AT DECEMBER 31, 2016 Vehicles, Parks Machinery, Transportation Land Infrastructure Equipment Infrastructure COST 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

AS AT DECEMBER 31, 2015 Vehicles, Parks Machinery, Transportation Land Infrastructure Equipment Infrastructure COST Opening balance $ 219,675,768 $ 22,581,751 $ 23,396,279 $ 257,862,608 Add: Additions 27,699 291,552 2,104,055 1,700,311 Add/(Deduct): Transfers from AUC - - - 1,385,944 Less: Disposals (6,603) - (703,452) (1,177,036) Closing balance 219,696,864 22,873,303 24,796,882 259,771,827

ACCUMULATED AMORTIZATION Opening balance - 13,356,911 12,763,076 50,331,624 Add: Amortization - 816,902 2,004,675 4,282,092 Less: Accumulated amortization on disposals - - (558,943) (542,842) Closing balance - 14,173,813 14,208,808 54,070,874

Net book value as at December 31, 2015 $ 219,696,864 $ 8,699,490 $ 10,588,074 $ 205,700,953

48 Annual Report 2016 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 (2015 - nil).

Assets Under Land Construction Buildings Drainage Improvements Water Sanitary Sewer (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

Assets Under Land Construction Buildings Drainage Improvements Water Sanitary Sewer (AUC) 2015 Total

$ 36,596,351 $ 86,641,124 $ 20,524,544 $ 74,248,236 $ 57,588,015 $ 5,291,264 $ 804,405,940 660,344 732,735 - 1,363,889 89,406 1,934,033 8,904,024 - 113,453 - 105,340 - (1,604,737) - - (67,555) (129,080) (516,115) (2,066) - (2,601,907) 37,256,695 87,419,757 20,395,464 75,201,350 57,675,355 5,620,560 810,708,057

16,741,268 28,021,987 5,477,710 29,432,812 19,325,450 - 175,450,838 886,684 1,296,389 289,663 1,601,280 857,700 - 12,035,385 - (24,216) (79,610) (56,635) (1,325) - (1,263,571) 17,627,952 29,294,160 5,687,763 30,977,457 20,181,825 - 186,222,652

$ 19,628,743 $ 58,125,597 $ 14,707,701 $ 44,223,893 $ 37,493,530 $ 5,620,560 $ 624,485,405

City of Port Coquitlam 49 Notes to the Consolidated Financial Statements

13. Accumulated Surplus 2016 2015 Unrestricted Reserves: General $ 15,325,251 $ 19,102,569 Water 6,764,871 6,499,179 Sewer 2,597,365 2,570,048 24,687,487 28,171,796

Restricted Reserves Note 14 92,124,484 73,014,430

Equity in tangible capital assets Note 15 602,964,183 602,244,125 Equity in inventories and prepaids 424,353 699,323 603,388,536 602,943,448 $ 720,200,507 $ 704,129,674

14. Restricted Reserves December 31, Contributions/ Interest Use of December 31, 2015 Transfers Allocation Reserves 2016 Building maintenance $ 2,991,083 $ 2,600 $ 57,314 $ (45,518) $ 3,005,479 Cemetery expansion 55,356 39,712 1,121 (34,531) 61,658 Community amenities 180,958 - 3,492 - 184,450 Environmental 545,100 - 9,807 (73,958) 480,949 Equipment 9,659,899 2,092,449 189,668 (929,211) 11,012,805 Gas tax 437,102 221,383 10,573 - 669,058 Land sale 15,274,954 5,335,066 300,010 (4,795,830) 16,114,200 Long term infrastructure 16,562,152 4,414,800 362,252 21,339,204 Operating 2,483,475 268,414 46,088 (462,073) 2,335,904 Parking 2,820,964 30,000 54,568 (17,223) 2,888,309 Parks and recreation 638,559 432,200 14,863 (169,136) 916,486 Parkland acquisition 1,156,001 899,434 30,990 - 2,086,425 Public safety building 270,105 40,900 5,325 (29,247) 287,083 Public works special capital 2,301,838 - 44,426 - 2,346,264 Recreation complex 696,935 5,582,500 67,322 - 6,346,757 RCMP 1,183,476 249,000 25,244 - 1,457,720 Roads and drainage infrastructure 7,587,109 1,635,850 150,436 (1,220,867) 8,152,528 Sewer 2,915,871 789,500 62,411 (153,812) 3,613,970 Social housing 250,602 17,500 5,005 - 273,107 Unallocated capital 4,965,860 1,788,000 112,483 (63,498) 6,802,845 Water 37,031 1,989,100 17,073 (293,921) 1,749,283 $ 73,014,430 $ 25,828,408 $ 1,570,471 $ (8,288,825) $ 92,124,484

50 Annual Report 2016 Notes to the Consolidated Financial Statements

15. Equity in Tangible Capital Assets 2016 2015 Cost of tangible capital assets Note 12 $ 817,026,620 $ 810,708,057 Accumulated amortization Note 12 (192,390,129) (186,222,652) Debt incurred to purchase tangible capital assets Note 11 (21,672,308) (22,241,280) $ 602,964,183 $ 602,244,125

16. Pension Plan The employer 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 benefi ts. The plan is a multi-employer defi ned benefi t pension plan. Basic pension benefi ts are based on a formula. As at December 31, 2015, the plan has about 189,000 active members and approximately 85,000 retired members. Active members include approximately 37,000 contributors from local governments.

Every three years, an actuarial valuation is performed to assess the fi nancial 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 suffi cient to provide benefi ts for average future entrants to the plan. This rate is then adjusted to the extent there is amortization of any funding defi cit.

The most recent valuation for the Municipal Pension Plan as at December 31, 2015, indicated a $2,224 million funding surplus for basic pension benefi ts on a going concern basis. The City paid $2,699,947 (2015 - $2,939,031) for employer contributions while employees contributed $2,179,888 (2015 - $2,395,079) to the plan in fi scal 2016. 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 fi scal year (defi ned 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 allocation the obligation, assets and cost to individual employers participating in the plan.

City of Port Coquitlam 51 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 suffi cient to meet the Authority’s obligations in respect of such borrowing; the resulting defi ciency 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 unspecifi ed 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 one Class A share and two Class B shares (of a total of 28 Class A and 23 Class B shares issued and outstanding as at December 31, 2016). 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.

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 benefi t of, and stands in a fi duciary relationship with, the benefi ciary.

The following trust fund is excluded from the City’s consolidated fi nancial statements.

2016 2015 CEMETERY PERPETUAL CARE FUND Cash balance, beginning of year $ 1,407,951 $ 1,327,352 Net contributions received 51,239 53,383 Interest earned 27,668 27,216 Cash balance, end of year $ 1,486,858 $ 1,407,951

52 Annual Report 2016 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:

2016 2015 Gross taxes levied on property $ 95,832,824 $ 93,415,008

Taxes levied and collected on behalf of other jurisdictions Province of BC - School Taxes 27,700,065 27,145,709 Greater Vancouver Regional District 840,225 809,029 BC Assessment Authority 894,348 870,350 South Coast British Columbia Transportation Authority 5,706,014 5,671,405 Municipal Finance Authority 3,184 2,856 35,143,836 34,499,349

Taxation revenue $ 60,688,988 $58,915,659

20. Budget Information The budget information presented in these consolidated fi nancial statements is based upon the 2016 Financial Plan Bylaw approved by Council on May 9, 2016. The chart below reconciles the approved budget to the budget fi gure reported in these consolidated fi nancial statements.

Budget Amount Revenue 96,604,400 Expenses (90,699,800) Annual surplus per consolidated statement of operations 5,904,600

Add: Amortization 13,500,000

Less: Transfers from reserves 613,700 Capital expenditures (18,572,500) Capital contributed by developers (1,000,000) Debt principal repayments (445,800) Approved budget $ -

City of Port Coquitlam 53 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: Provides support services that include: communications and administrative services, corporate offi ce and lands, bylaw services and information services. Finance: Provides fi nancial services to citizens, City departments and City Council including fi nancial 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, benefi t administration, and wage and salary administration. Offi ce of the Chief Administrative Offi cer (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.

GENERAL GOVERNMENT Corporate Human Offi ce of Engineering & REVENUE General Support Finance Resources the CAO Public Works Taxation and other levies $ 60,524,778 $ - $ - $ - $ - $ - Utility rates (90,298) - - - - - Sale of services 95,026 22,121 130,721 - - 1,571,172 Contributions 1,124,767 3,249 - - - 1,282,394 Permits and licences 21,398 1,069,564 166,288 - - - Investment income 1,146,839 1,570,471 - - - - Penalties and fi nes 263,073 41,594 - - - - Other revenue 996,691 26,851 127,728 - - 85,159 Gain (loss) on disposals and write-downs 1,220,176 - - - (918,773) $ 64,082,274 $ 3,954,026 $ 424,737 $ - $ - $ 2,019,952 EXPENSES Personnel $1,403 $2,882,708 $2,057,489 $689,269 $260,003 $7,285,227 Contracted and other Services 31,209 897,241 387,554 159,062 3,581 2,711,145 Telephone, utilities and rent 967 45,725 53,669 355 626 630,090 Materials and supplies 16,923 66,452 118,459 2,759 - 2,045,266 Internal charges (recoveries) (2,302) (367,039) (737,732) - - (2,923,171) Insurance and claims 1,393 - 740,038 - - 73,923 Interest and bank charges 909,924 9,162 12,354 - - 4,543 Grants and fi nancial assistance 27,055 - - - - - Amortization 142,794 444,338 - - - 7,664,482 $ 1,129,366 $ 3,978,587 $ 2,631,831 $ 851,445 $ 264,210 $ 17,491,505

ANNUAL SURPLUS (DEFICIT) $ 62,952,908 $ (24,561) $ (2,207,094) $ (851,445) $ (264,210) $ (15,471,553)

54 Annual Report 2016 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 fi elds, roads and drainage, environmental protection, management of the City’s fl eet 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 fl ows and pressures suitable for fi re 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.

Fire & Sanitary Police Emergency Development Water Sewer Recreation Services Services Services Solid Waste Operations Operations 2016 2015 $ - $ - $ - $ 164,210 $ - $ - $ - $60,688,988 $ 58,915,659 - - - - - 11,343,371 7,997,852 19,250,925 19,274,060 3,655,569 45,261 83,156 349,647 3,212,043 - - 9,164,716 8,179,258 181,069 639,372 857 4,072,926 - - - 7,304,634 3,793,559 - - 1,620 1,533,227 - 15,025 20,412 2,827,534 2,481,191 ------2,717,310 2,176,755 - - - - - 79,062 55,001 438,730 375,350 21,812 - - - - 5,460 - 1,263,701 248,775 - - 21,043 - - (55,727) (36,126) 230,593 4,187,942 $ 3,858,450 $ 684,633 $ 106,676 $ 6,120,010 $ 3,212,043 $ 11,387,191 $ 8,037,139 $ 103,887,131 $ 99,632,549

$ 6,991,201 $ - $ 10,112,836 $ 2,508,765 $ 834,285 $ 787,908 $ 236,966 $ 34,648,060 $ 33,943,411 3,282,663 14,113,549 284,748 298,191 916,514 6,080,275 4,738,285 33,904,017 27,316,503 636,986 - 60,982 1,965 201 72,032 105,220 1,608,818 1,583,702 969,049 - 209,877 5,388 40,033 252,399 50,806 3,777,411 9,003,275 (51,465) - 2,534 57,198 1,398,443 1,381,393 1,242,141 - - 346 - - - 2,147 - 2,358 820,205 568,967 142,309 10,156 - - - 1,088,448 1,094,377 110,876 ------137,931 138,723 536,350 106,865 464,033 2,830 - 1,597,516 872,200 11,831,408 12,035,385 $ 12,618,315 $ 14,220,414 $ 11,135,010 $ 2,884,493 $ 3,191,623 $ 10,171,523 $ 7,247,976 $ 87,816,298 $ 85,684,343

$(8,759,865) $ (13,535,781) $ (11,028,334) $ 3,235,517 $ 20,420 $ 1,215,668 $ 789,163 $ 16,070,833 $ 13,948,206

City of Port Coquitlam 55 Page header

Text

56 Annual Report 2016 STATISTICAL section (unaudited)

57 Average Home Municipal Taxes and Utilities

Source: BC Ministry of Community, NORTH VANCOUVER DISTRICT | $6,417 Sport & Cultural Development

WEST VANCOUVER | $9,944

NORTH VANCOUVER CITY | $5,616

COQUITLAM | $5,329

PITT MEADOWS | $4,097 PORT MOODY | $5,872

BURNABY | $6,085 MAPLE RIDGE | $4,450 VANCOUVER | $7,015

PORT COQUITLAM | $4,429 NEW WESTMINSTER | $5,796

RICHMOND | $5,750

SURREY | $4,529 LANGLEY (CITY) | $4,057 TAX RANGE DELTA | $4,734 > $7,000 $6,000 - $6,999 $5,500 - $5,999 LANGLEY TOWNSHIP | $4,404 $4,500 - $5,499 $4,000 - $4,499 WHITE ROCK | $6,256


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58 Annual Report 2016 Community Statistics

Assessed Values for General Municipal Purposes

Dollars (000,000) Source: BC Assessment Authority

 12,165  10,804 9,902 10,103 10,154 









       
   
   

Population Estimates

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City of Port Coquitlam 59 Household Cost of City Services

Estimated Household Costs of City Services for an Average Single Family Residence

Source: City of Port Coquitlam Finance Department

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60 Annual Report 2016 Property Taxes

Property Taxes Levied and Collected

Thousands Source: City of Port Coquitlam Finance Department

2011 2012 2013 2014 2015 2016 City of Port Coquitlam - tax $ 49,594 $ 51,408 $ 54,066 $ 54,918 $ 57,120 $ 60,688 Regional District 791 755 806 789 809 840 BC Assessment 814 821 846 851 870 894 Finance Authority 2 3 3 3 3 3 School District 23,853 24,369 25,464 26,425 27,146 27,700 BC Transit Authority 5,598 5,546 5,604 5,607 5,671 5,706

TOTAL CURRENT TAXES LEVIED 80,652 82,902 86,789 88,593 91,619 95,831

Current tax collected ($) 79,036 81,159 85,323 86,872 90,306 94,886 Current tax collected (%) 98.00% 97.90% 98.31% 98.06% 98.57% 99.01%

Tax arrears beginning of year 2,515 2,182 2,144 2,227 1,977 1,953

Tax arrears collected ($) 1,696 1,354 1,376 1,529 1,380 1,495 Tax arrears collected (%) 67.44% 62.05% 64.18% 68.66% 69.80% 76.59%

TOTAL TAX COLLECTIONS Έ$Ή $ 80,732 $ 82,513 $ 86,699 $ 88,401 $ 91,686 $ 96,381

Taxes, Major Levies and Other Government Collections

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City of Port Coquitlam 61 Taxes and Revenues

Revenues by Source

Dollars Source: City of Port Coquitlam Finance Department

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62 Annual Report 2016 Expenses

Expense by Function

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Annual 2012 2013 2014 2015 2016 Totals $$80,005,53380,005,533 $$80,383,77580,383,775 $$82,470,84182,470,841 $$85,684,34385,684,343 $$87,816,29887,816,298

Expense by Object

Dollars Source: City of Port Coquitlam Finance Department

         

         

Annual 2012 2013 2014 2015 2016 Totals $80,005,533 $80,383,775 $82,470,841 $85,684,343 $87,816,298

City of Port Coquitlam 63 Capital Expenditures

Capital Expenditures and Net Debt Per Capita

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Capital Expenditures by Source

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64 Annual Report 2016 Surplus, Reserve and Other Accounts

Surplus, Net Financial Assets and Debt

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Accumulated SurplusSurplus

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Summary of Major Statutory Reserve Funds

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City of Port Coquitlam 65 2016 Total Revenue and Expenses

2016 Revenue

Total Revenue: $103.9 million 
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Total Expenses:xpenses: $$87.887.8 milliomillionn   

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66 Annual Report 2016 Principal Corporate Taxpayers

REGISTERED OWNER PRIMARY PROPERTY TAXES LEVIED 0697788 BC Ltd Shopping Centre $ 2,235,874 Canadian Pacifi c Railway Railyard 1,152,040 Artis Poco Place Ltd Shopping Centre 567,214 629654 BC Ltd Warehouse Distribution 560,652 Mondi Properties Miscellaneous 456,129 1510060 Ontario Inc Shopping Centre 442,514 Sysco Canada Inc Food Distributor 404,501 De Gobbi Industries Ltd Miscellaneous 395,633 RPMG Holdings Ltd Miscellaneous 391,980 Costco Wholesale Canada Ltd Retail Sales 391,158 Westlo Financial Corp Shopping Centre 357,971 Viam Holdings Warehouse Distribution 334,538 Onni Development Corp Miscellaneous 323,822 Beedie (Kingsway Ave) Holdings II Ltd Manufacturing 310,991 566203 BC Ltd Miscellaneous 288,490 Home Depot Holdings Inc Retail Sales 288,257 Consolidated Fastfrate (BC) Holdings Inc Shipping Company 280,758 1488 Coast Meridian RD Holdings Ltd Warehouse Distribution 271,361 Kebet Holdings Ltd Miscellaneous 250,010 RPMG Holdings Ltd Warehouse Distribution 248,502 Sunrise Investments Inc Miscellaneous 211,240 Greater Vancouver Transportation Authority Service Repair Garage 202,483 Yen Hoy Enterprises Ltd Shopping Centre 169,807 660775 BC Ltd Shopping Centre 161,749 0912890 BC Ltd Shopping Centre 160,350 $ 10,858,024

City of Port Coquitlam 67 Permissive Tax Exemptions

NAME TAX RELIEF Port Coquitlam Kinsmen Club $ 8,118 Port Coquitlam Heritage and Cultural Society 9,141 Hyde Creek Streamkeepers 9,257 Victory Baptist Church 11,367 Tri-City Women's Centre 11,630 Southside Baptist Church 12,388 Coquitlam Chinese Evangelical Free Church 14,896 Pentecostal Assemblies of Canada 16,976 Hope Lutheran Church 23,618 Port Coquitlam Seniors Housing 25,669 Northview Community Church 25,872 Foresquare Gospel Church of Canada 27,613 Vancouver Bible Presbyterian Church 27,921 Trustees of Trinity Congregation of the United Church of Canada 28,466 Fellowship Deaconry Association of British Columbia 28,655 Tri-City Islamic Centre 29,541 Coquitlam Chinese Evangelical Bible Church 31,888 Royal Canadian Legion Port Coquitlam (British Columbia/Yukon Command No. 133) 48,397 Hawthorne Care Centre 83,826 Archbishop Carney Roman Catholic Highschool 170,717 Our Lady of Assumption Roman Catholic Church and Elementary 174,255 $ 820,211

68 Annual Report 2016

THE CORPORATION OF T H E C I T Y O F

Tel: 604.927.5411 Fax: 604.927.5360 [email protected]

2580 Shaughnessy Street Port Coquitlam, British Columbia Canada V3C 2A8 www.portcoquitlam.ca