The Regional Municipality of Durham 2016 Annual Report
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2016 Annual Report for the year ended December 31, 2016 The Regional Municipality of Durham Ontario, Canada Annual Report 2016 page 2 of 82 Table of Contents Introductory Information 7 Durham at a Glance 8 Governance Structure 10 Message from the Regional Chair and Chief Executive Officer 13 Message from the Chief Administrative Officer 15 Durham Regional Council: Purpose and Composition 16 Appointments to Agencies, Boards and Committees 17 Durham Region Strategic Plan 2015-2019 18 A Commitment to Performance Measurement 20 Message from the Commissioner of Finance and Treasurer 23 Local Economic Overview 23 Distinguished Budget Presentation Award 23 Business Planning 26 2016 Property Tax Supported Budgets 29 2016 Average Residential Property Taxes 29 Canadian Award for Financial Reporting 29 Financial Results 31 Reserve and Reserve Fund Management 33 Debt: Policy and Position 34 Financial Statements and Financial Management 36 Accounting and External Audit 38 Financial Management Team 39 Consolidated Financial Statements 41 Independent Auditor’s Report 43 Consolidated Statement of Financial Position 44 Consolidated Statement of Operations and Accumulated Surplus 45 Consolidated Statement of Change in Net Financial Assets 46 Consolidated Statement of Cash Flows 47 Notes to the Consolidated Financial Statements 48 Consolidated Schedule of Deferred Revenue: Schedule 1 65 Consolidated Schedule of Tangible Capital Assets: Schedule 2 66 Consolidated Schedule of Segment Disclosure: Schedule 3 68 Trust Funds Financial Statements 71 Independent Auditor’s Report 73 Trust Funds: Statement of Financial Position 74 Trust Funds: Statement of Financial Activities and Fund Balances 74 Notes to the Trust Funds Financial Statements 75 Statistical Information 77 Statistical Review 2012-2016 (Unaudited) 78 The Regional Municipality of Durham page 3 of 82 Annual Report 2016 page 4 of 82 2016 Annual Report for the year ended December 31, 2016 The Regional Municipality of Durham Ontario, Canada 605 Rossland Road East, Whitby, Ontario, Canada L1N 6A3 Telephone: 905.668.7711 • Toll free: 1.800.372.1102 Facsimile: 905.668.1567 Email: [email protected] • Website: www.durham.ca This document was produced by the Finance Department, Regional Municipality of Durham The Regional Municipality of Durham page 5 of 82 Annual Report 2016 page 6 of 82 Introductory Information for the year ended December 31, 2016 The Regional Municipality of Durham Ontario, Canada The Regional Municipality of Durham page 7 of 82 Durham at a Glance The Region of Durham is located in the Greater Toronto Area immediately to the east of the City of Toronto and within the high growth economic zone known as the Greater Golden Horseshoe. Durham Region encompasses an area of 2,537 square kilometres and shares access to the Great Lakes and northeastern markets of the continent. The Region is well known for the strength of its education and health services, agri-business and manufacturing. Continued economic diversification is supported by a relatively young and skilled labour force and advanced utilities, transportation systems and social infrastructure. Characterized by a variety of landscapes and communities, a diverse landscape of woods, headwaters, ridges and hollows gives way to rolling farmlands and lakes in the Region’s northern areas. Major lakeshore urban communities contrast with small towns, villages, hamlets and farms located farther inland. The lakeshore area is marked by bluffs, wooded creeks and ancient shoreline, while the north includes the rich biodiversity, abundant water resources and topography of the Oak Ridges Moraine. Higher Education: Key Economic Sectors: • University of Ontario Institute of • Advanced Manufacturing Technology • Agri-business • Durham College • Digital Technologies • Trent University Durham • Smart Energy • Queen’s University Family Medicine • Tourism Residency Program Annual Report 2016 page 8 of 82 Population The Regional Municipality of Durham consists of the Cities of Oshawa and Pickering, the Towns of Ajax and Whitby, the Municipality of Clarington and the Townships of Brock, Scugog and Uxbridge. The December 31, 2016 population was estimated at 673,070.* Estimated 2016 Square Population Kilometres Town of Ajax 124,810 68 Township of Brock 12,070 425 Municipality of Clarington 96,495 613 City of Oshawa 166,535 146 City of Pickering 95,220 232 Township of Scugog 22,375 481 Township of Uxbridge 22,050 424 Town of Whitby 133,515 148 Total Durham Region 673,070 2,537 *Source: “Report 2017-INFO-50: Monitoring of Growth Trends,” Regional Municipality of Durham Planning and Economic Development Department (May 1, 2017). The Regional Municipality of Durham page 9 of 82 Governance Structure Regional Council The Regional Municipality of Durham began Regional Chair & Chief Executive Officer operations January 1, 1974 as one of five regional R. Anderson governments of the Greater Toronto Area. Regional Council Durham Region is the upper tier municipality in 28 Regional Councillors a two tiered governance structure. Eight local municipalities, located within the boundaries of Committee of the Whole* the Region, also administer local programs within 28 Regional Councillors their jurisdiction and constitute the lower tier. The two-tiered structure retains closeness to the *Effective September 2016, Regional people but also permits a region-wide approach to Council commenced a pilot governance development, infrastructure and service delivery. structure which replaced the four Regional The Region and local municipalities collaborate Council Standing Committees (Health & and partner as appropriate to ensure effective Social Services, Planning & Economic and accountable service delivery both within and Development, Works and Finance & across jurisdictional spheres. Administration) with a Committee of the Whole until the end of the current Regional The Region’s eight local municipalities Council term (November, 2018). A review have jurisdictional responsibility over the of the pilot program will be conducted in following areas: June 2018. Local planning and development; Administration Local roads, bridges, storm sewers and Chief Administrative Officer sidewalks; G.H. Cubitt Fire protection and prevention; Parks and recreation; Regional Management Team Property tax billing and collection; Commissioner and Medical Officer of Health Garbage, green bin, yard waste, bulky Dr. R.J. Kyle and white goods collection (Oshawa and Whitby only); Commissioner of Finance and Treasurer Animal control; R.J. Clapp Library services; Commissioner of Planning and Economic Development Municipal elections; B.E. Bridgeman Parking and local by-law enforcement; Commissioner of Corporate Services Vacant Property standards; Commissioner of Social Services Building and plumbing inspections and Dr. H. Drouin permits; and, Commissioner of Works $ Business and lottery licensing. S. Siopis Annual Report 2016 page 10 of 82 The Regional Municipality of Durham has jurisdictional responsibility over the following areas: • Regional roads, bridges, traffic signals and municipalities; controls and related storm sewers; • Garbage, Green Bin, yard waste, bulky Administration • Durham Regional Police Service; and white goods collection in Ajax, • Region of Durham Paramedic Service; Brock, Clarington, Pickering, Scugog Chief Administrative Officer and Uxbridge; • Emergency management; G.H. Cubitt • Solid waste management: promotion and • 911 emergency management; education, processing, diversion and • Public health programs and services; Regional Management Team disposal; Commissioner and Medical Officer • Durham Region Transit, including specialized • Child care centres, nursery school programs of Health transit services; and Durham Behaviour Management Dr. R.J. Kyle • Durham Region Official Plan; Services; • Long-term care and services for seniors; Commissioner of Finance and • Delegated authority for local municipal official Treasurer plans and amendments; • Family services and counselling; R.J. Clapp • Strategic land use planning; • Housing and homelessness programs Commissioner of Planning and • Industrial, commercial and residential and services; Economic Development development approvals; • Ontario Works programs and services; B.E. Bridgeman • Land division consent applications; • Borrowing for capital expenditures of Commissioner of Corporate Services • Subdivision and condominium approvals; Regional and local area municipalities; Vacant • Economic development and tourism; • Property taxation policy; and, Commissioner of Social Services • Municipal water supply treatment, • Provincial offences court, prosecution Dr. H. Drouin distribution and billing; services, administration and collection of fines. Commissioner of Works • Municipal sanitary sewerage collection, S. Siopis treatment and billing; • Blue Box collection in all local area Annual Report 2016 page 10 of 82 The Regional Municipality of Durham page 11 of 82 Message from Roger Anderson Regional Chair and Chief Executive Officer Annual Report 2016 page 12 of 82 Message from Roger Anderson Regional Chair and Chief Executive Officer In 2016, Regional Council continued its commitment to sustainable growth by investing in priority areas such as water and waste water systems, solid waste management, the road network, transit system, and police and paramedic services. Whenever possible we optimize the Region’s investment by leveraging contributions from other governments. Throughout the year, the Region advocated for an expanded public transit