2017 NIAGARA REGION

ANNUAL FINANCIAL REPORT

For the year ended December 31, 2017 | The Regional Municipality of Niagara , Canada | niagararegion.ca 2017 NIAGARA REGION CONTENTS INTRODUCTION 4 Vision, Mission, Values ANNUAL FINANCIAL REPORT 5 2014-2018 Regional Council 6 Corporate Leadership Team 7 Message from the Regional Chair & CAO For the year ended December 31, 2017 | The Regional Municipality of Niagara 8 Niagara Region | Where are we? Where are we going? Ontario, Canada | niagararegion.ca 10 Regional Programs and Services 14 2015-2018 Regional Council Priorities Prepared by Enterprise Resource Management Services Department 16 2017 Achievements and the office of the Chief Administrative Officer 19 Supporting our Community

FINANCIAL STATEMENTS 21 Report from the Treasurer

CONSOLIDATED FINANCIAL STATEMENTS 34 Management’s Responsibility for the Financial Statements 35 Independent Auditor’s Report on Consolidated Financial Statements 37 Consolidated Statement of Financial Position 38 Consolidated Statement of Operations 39 Consolidated Statement of Change in Net Debt 40 Consolidated Statement of Cash Flows 41 Notes to Consolidated Financial Statements

SINKING FUND FINANCIAL STATEMENTS 66 Independent Auditor’s Report on Sinking Fund Financial Statements 68 Sinking Fund Statement of Financial Position 69 Sinking Fund Statement of Financial Activities and Fund Balance 70 Sinking Fund Statement of Cash Flows 71 Notes to Sinking Fund Financial Statements

TRUST FUNDS FINANCIAL STATEMENTS 72 Independent Auditor’s Report on Trust Fund Financial Statements 74 Trust Fund Statement of Financial Position 75 Trust Fund Statement of Operations and Change in Net Financial Assets 76 Trust Fund Statement of Cash Flows 77 Notes to Trust Fund Financial Statements

STATISTICAL 79 Five Year Statistical Review

2017 NIAGARA REGION ANNUAL REPORT | 3 VISION 2014 - 2018 REGIONAL COUNCIL Niagara Region is a unified community of communities with diverse Niagara Region is one of six Regional governments in Ontario. opportunities and qualities. Together we strive for a better tomorrow. As an upper-tier municipality, the Region provides programs and services for the residents and businesses in 12 cities and towns. Council is comprised of a Regional Chair, 12 elected MISSION mayors and 18 elected officials from Niagara’s local area municipalities. Regional Council Niagara Region will serve its residents, businesses and visitors through also functions as Niagara’s Board of Health. leadership, partnership and the provision of effective and community- Alan Caslin focused services. REGIONAL CHAIR

VALUES Our corporate values guide our decision-making and actions every day.

We treat everyone equitably with compassion, sensitivity and respect. Sandy Annuziata Dave Augustyn David Barrick Brian Baty Bob Bentley Gary Burroughs FORT ERIE PELHAM PELHAM GRIMSBY NIAGARA-ON-THE-LAKE

We serve Niagara with pride, care and excellence.

We value honesty, integrity and trust. Frank Campion Henry D’Angela Patrick Darte Sandra Easton Kelly Edgar NIAGARA-ON-THE-LAKE NIAGARA FALLS LINCOLN ST. CATHARINES

We believe in social, environmental and economic choices that support our diverse community.

We foster collaboration and value partnerships. Bob Gale Paul Grenier Brian Heit Bill Hodgson April Jeffs Douglas Joyner NIAGARA FALLS WELLAND ST. CATHARINES LINCOLN WAINFLEET WEST LINCOLN

Ted Luciani Debbie MacGregor John Maloney George Marshall Bart Maves Andrew Petrowski THOROLD ST. CATHARINES PORT COLBORNE WELLAND NIAGARA FALLS ST. CATHARINES

Tony Quirk Wayne Redekop Tim Rigby Bruce Timms Selina Volpatti GRIMSBY FORT ERIE ST. CATHARINES ST. CATHARINES ST. CATHARINES NIAGARA FALLS

2017 NIAGARA REGION ANNUAL REPORT | 4 2017 NIAGARA REGION ANNUAL REPORT | 5 THE REGIONAL CHAIR THE CAO MESSAGE FROM Alan Caslin Carmelo D’Angelo ALAN CASLIN | NIAGARA REGIONAL CHAIR & REGIONAL CHAIR CHIEF ADMINISTRATIVE OFFICER The Niagara Regional Chair holds dual The Chief Administrative Officer is CARMEN D’ANGELO | CHIEF ADMINISTRATIVE OFFICER responsible for providing advice to Regional roles as both Head of Council and the 2017 was a year of significant progress that saw us Through our strategic partnerships, Niagara Region is Council and leadership to senior staff. The Chief Executive Officer of the Region. continue to accomplish many of the strategic priorities also increasing efforts to ensure that all residents have a CAO is responsible for empowering a team The Regional Chair provides leadership to that were set in 2015. These achievements were a place they can call home. A safe and stable home situation of more than 3,000 employees to ensure Council, represents the Region at official direct result of the commitment of Regional Council, our will ensure Niagara’s residents can take advantage of that Regional Council’s strategic priorities functions, and participates in activities dedicated and talented staff and our community partners all opportunities in our region. To accomplish this, we and policies are implemented efficiently that enhance the economic, social and to creating economic prosperity across Niagara. Over have developed strong partnerships with local developer and effectively. environmental well-being of the Niagara the past three years we have made millions of dollars PennTerra and community partner Bethlehem Housing to Region and its residents. in strategic investments to ensure we stay on track to construct a mixture of 127 affordable, below market and CORPORATE LEADERSHIP TEAM improve the quality of life for all our residents. By keeping market rent units in St. Catharines. In addition, Niagara taxes low, maintaining and creating jobs by supporting the Regional Council has earmarked development charge Carmelo D’Angelo Dr. M. Mustafa Hirji, Adrienne Jugley CHIEF MD, MPH, FRCPC COMMISSIONER business community, investing in consolidated transit and funding of $1.7 million for further affordable housing ADMINISTRATIVE OFFICER ACTING MEDICAL OF COMMUNITY funding essential services such as affordable housing and investment, along with approving Niagara Regional OFFICER, COMMISSIONER SERVICES community supports, we are taking the steps to ensure Housing new development projects, adding 97 new units OF PUBLIC HEALTH & EMERGENCY SERVICES Niagara is always moving forward. to the Niagara Regional Housing portfolio and 40 units in partnership with non-profit partners, ensuring residents of During this term, Regional Council and staff have worked Niagara region have the community support they need. Helen Chamberlain Ron Tripp Rino Mostacci hard to ensure taxes were kept low, averaging an annual ACTING COMMISSIONER OF COMMISSIONER OF increase of 1.47 per cent. Despite this modest increase, We also recognize the valuable and essential services COMMISSIONER OF PUBLIC WORKS PLANNING AND we’ve remained committed to putting residents first through delivered daily by Niagara Region staff and partner agencies. ENTERPRISE RESOURCE DEVELOPMENT MANAGEMENT SERVICES, SERVICES the budgeting process. Every day we diligently work to make Residents and businesses depend on the Region in many TREASURER sure every dollar spent we spend will result in a high return ways – from roads to drinking water, waste collection to on investment for our residents, businesses and visitors. quality child care services, food safety to supports for seniors – and many other programs and services. We A strong economy ensures we can enjoy a high quality of believe our people are our greatest asset and we would not OFFICE OF THE CHIEF REGIONAL COUNCIL COMMITTEES life, affordable public services, low unemployment and be successful without them. ADMINISTRATIVE OFFICER • Public Health and Social Services Committee an fulfilling retirement. To this end, we are aggressively pursuing businesses to locate and expand in Niagara. The accomplishments achieved through the cooperation • Enterprise Resource Management Services • Corporate Services Committee of Niagara Regional staff and Council working together • Office of the General Manager • Planning and Economic Development Committee 2017 saw an increase in net new jobs resulting in a reinforces that Niagara is on the right track. In short, we declining unemployment rate. In fact January 2018 recorded • Planning and Development Services • Public Works Committee are focused on building and supporting vibrant and healthy the lowest unemployment rate since April 2000, dropping communities that offer people a high quality of life. • Public Health and Emergency Services • Budget Review Committee of the Whole below the majority of comparable metropolitan areas • Community Services including Hamilton, Waterloo, , , London, We are very proud to be part of the team at Niagara Region , and Kingston. It’s clear that Niagara Region is and will continue to deliver for our residents. We look • Public Works OTHER SUPPORTING SERVICES • Auditors delivering what residents want most: jobs and growth. forward to continue collaborating with local municipalities, »» Deloitte LLP businesses and entrepreneurs, educators and our BOARDS AND AGENCIES Another important part of our economic story includes the community partners as we work to pursue our goal of • Provincial Offences Joint Board • Fiscal Agents concrete steps Niagara Region has taken towards creating economic prosperity for the benefit of all our citizens. »» Ken Beaman, Chair »» National Bank Financial Inc., RBC Capital Markets, a consolidated transit system. In June 2017, we achieved CIBC World Markets Inc. unanimous triple majority enabling the Region to have a • Police Services Board role in operating inter-municipal transit. We are currently Alan Caslin | Regional Chair »» Bob Gale, Chair • Fiscal Solicitor »» WeirFoulds LLP. developing a work plan for consolidation and have made Carmelo D’Angelo | CAO • Niagara Peninsula Conservation Authority immediate route and service improvements to benefit all »» Sandy Annunziata, Chair • Insurance Provider and Broker residents. With new provincial and federal transit funding »» James Kaspersetz, Vice Chair »» Frank Cowan, HUB International Ontario Limited on the way, we are looking forward to working with our October 31, 2018 • Niagara Regional Housing local area municipality partners to invest these funds in an »» Henry D’Angela, Chair »» Jardine Lloyd Thompson Canada Inc enhanced transit system for the entire region. November 1, 2017 • Banker »» The Royal Bank of Canada 2017 NIAGARA REGION ANNUAL REPORT | 6 2017 NIAGARA REGION ANNUAL REPORT | 7 NIAGARA REGION

WHERE ARE WE? WHERE ARE WE GOING? Niagara Region offers our 458,986 residents a mix of Our proximity to Toronto and the United States has In order to plan for a prosperous and sustainable future, effective environmental protection. We’re responsible urban and rural living amidst the lush Southern Ontario been an integral part of our economic evolution. we are preparing for growth today by working with the for what comes out of your tap, and what happens after greenbelt. Residents and visitors to the region enjoy Industries include manufacturing, tourism, agriculture, citizens of Niagara to shape next council’s strategic you flush the toilet. more than 140 kilometers of suitable walking, cycling and agribusiness, transportation and logistics plan. The Shape Niagara strategic plan presented to and rollerblading trails, 6 farmer’s markets, a University and emerging sectors such as new media, green council next term, will focus on Infrastructure, Social The Water and Wastewater Master Servicing Plan and a College. Niagara’s diverse culture is celebrated technology and bioscience. Niagara is positioned to Services, Environmental impact, Governance and provides direction on how we operate now and how annually with events such as the Folk Arts Festival and be the first municipality awarded with the federal Advocacy, Economic Growth, Health and Wellness, and we plan to operate and deliver water and wastewater the Niagara Wine Festival in St. Catharines, Friendship Economic Trade Corridor Designation. And was recently Quality of Life. services in the future. Community growth has a huge Festival in Fort Erie and Canal Days in Port Colborne. designated as a Foreign Trade Zone, facilitating impact on water supply and delivery. It’s up to us to The region is home to more than 50 museums and economic trade between Niagara businesses and the Niagara Region has also developed The Transportation determine how best to meet Niagara’s growing needs art galleries. The Shaw Festival in Niagara-on-the- rest of the world. Master Plan. A comprehensive strategic planning and ensure water and wastewater infrastructure lake presents 14 world-class plays on 3 stages each document that defines policies, programs and accurately reflects this. year and has grown to become a significant Canadian The population is seeing major increases, jobs are infrastructure improvements required to address cultural icon. being created at a steady pace, weekly employment transportation and growth needs from today through to The Development Charges Background Study will income is increasing, gross domestic product is on 2041. be aligned with the strategic growth option from the St. Catharines has recently built a 5,300 seat spectator the rise, new businesses are being created, more Municipal Comprehensive Review and the infrastructure facility which is home to the Niagara Ice Dogs, the businesses are employing people, investment in We are working with local area municipalities to provide needs identified by the Master Servicing Plan and Niagara River Lions and has hosted a number of commercial and industrial building construction is communities with safe, clean drinking water and Transportation Master Plan. celebrated musicians including the Tragically Hip, booming, and more companies are exporting and City and Colour, Metric and Elton John. Niagara also bringing new money into the regional economy. offers cultural and live entertainment at our world- class performing arts centre, as well as a diverse and eclectic selection of restaurants, wineries and attractions throughout the region.

2017 NIAGARA REGION ANNUAL REPORT | 9 REGIONAL PROGRAMS AND SERVICES GENERAL GOVERNMENT PROTECTION TO PERSONS acts as the final decision- AND PROPERTY NIAGARA REGION’S PROGRAMS AND SERVICES TOUCH THE LIVES making body for Niagara Region and is responsible NRPS OF RESIDENTS EVERY DAY. THE REGION PROVIDES HIGH QUALITY for all corporate grants not applicable to specific The Niagara Regional Police Service is dedicated to DRINKING WATER, MAINTAINS THE REGIONAL ROADS YOU DRIVE ON, departments and capital financing administration. serving and protecting residents and visitors within the The Region contributes funding to partners within the FUNDS TWO INTER-MUNICIPAL TRANSIT SERVICES, AND PROVIDES Regional Municipality of Niagara. In partnership with the community, including the Niagara Health System’s community, we shall provide quality policing services, HELP FOR NIAGARA’S MOST VULNERABLE RESIDENTS, INCLUDING THE cancer centre, Wainfleet beach, research agreements, with integrity, diligence and sensitivity. OPERATION OF EIGHT LONG-TERM CARE HOMES AND A RANGE OF and most recently, funding for the 2021 Canada SUPPORT SERVICES TO HELP SENIORS REMAIN IN THEIR HOMES. Summer Games. NPCA FROM THE COLLECTION OF YOUR GARBAGE AND RECYCLING BINS, TRANSPORTATION SERVICES The Niagara Peninsula Conservation Authority TO THE STAFF THAT SUPPORT OUR CHILDCARE CENTRES, AND Responsible for the planning, design, operation and (NPCA) was established on April 30, 1959 under the OUR PARAMEDICS WHO ARE READY TO RESPOND WHEN THE maintenance of the 800 km regional road network. Conservation Authorities Act, and serves approximately Some of its programs include road and bridge half a million people in an area known as the Niagara UNEXPECTED HAPPENS, NIAGARA REGION IS HERE TO BUILD A resurfacing, snow plowing, traffic signals and street Peninsula Watershed. This area of jurisdiction HEALTHIER AND MORE PROSPEROUS COMMUNITY. lighting, storm sewers and drainage assessments, bike encompasses the whole of Niagara Region, 21% of the paths, road signage as well as railway crossings. This City of Hamilton and 25% of . division is also responsible for the maintenance of the Region’s fleet of vehicles.

2017 NIAGARA REGION ANNUAL REPORT | 10 2017 NIAGARA REGION ANNUAL REPORT | 11 ENVIRONMENTAL SERVICES HEALTH SERVICES SOCIAL HOUSING PLANNING AND The Public Health and Emergency Services department is Niagara Regional Housing (NRH) is responsible for the DEVELOPMENT WASTE MANAGEMENT responsible for the general health and wellbeing of Niagara’s administration of affordable housing across the Niagara Creating healthy and prosperous communities through Responsible for the planning, management and residents and is further broken down to the following divisions: Region and is dedicated to providing and advocating for partnerships and customer-focused solutions, the planning operations of residential and commercial curbside • Chronic Disease and Injury Prevention quality affordable housing in Niagara through a combination and development department is further broken down into waste, recycling and organics collection programs. It • Clinical Services of programs and services including: the following divisions; is also responsible for overseeing 2 regional landfills, a • Emergency Medical Services • Public Housing • Development Services Recycling Centre, 3 household hazardous waste depots, • Environmental Health • Non-Profit & Co-operative Housing Programs 3 material drop-off depots as well as 12 closed landfills. • Community and Long-Range Planning • Family Health • Rent Supplement Program • Infrastructure Planning and Development Engineering • Medical Division • Housing Allowance Program For more information about Niagara Region’s programs and WATER AND WASTEWATER • Organizational and Foundational Standards • Housing First Provides safe and reliable water and wastewater • New Development services, visit niagararegion.ca. services, while practicing good resource stewardship. SOCIAL AND FAMILY SERVICES • Niagara Renovates This division is responsible for the operation and • Welcome Home Niagara maintenance of 6 water treatment plants, 38 water With a commitment to excellence and innovation, we respond • Community Programs reservoirs and elevated tanks, 23 booster and to the fundamental needs of Niagara’s most vulnerable citizens chlorine booster stations as well as 300 km of trunk through a spectrum of integrated programs and partnerships. water mains. The division also treats the wastewater Community Services is broken down in the following divisions; from Niagara’s sewers through the operation of 11 • Children’s Services wastewater facilities. • Homelessness Services and Community Engagement • Senior Services • Social Assistance and Employment Opportunities

2017 NIAGARA REGION ANNUAL REPORT | 12 2017 NIAGARA REGION ANNUAL REPORT | 13 COUNCIL’S STRATEGIC PRIORITIES 2015-2018 NIAGARA REGIONAL COUNCIL’S STRATEGIC PRIORITIES RECOGNIZE MOVING PEOPLE AND GOODS DOING BUSINESS DIFFERENTLY THE IMPORTANCE OF LONG-TERM PLANNING AND PRIORITY Create strong linkages between all modes of transportation. Utilizing strategies that foster economic prosperity in Niagara. SETTING IN ORDER TO ENABLE A MORE PROSPEROUS NIAGARA. FOSTERING INNOVATION, INVESTMENT ESTABLISHED IN FEBRUARY 2015, THE 2015-2018 STRATEGIC PRIORITIES AND ENTREPRENEURSHIP ADVANCING ORGANIZATIONAL ARE SUPPORTED BY STRATEGIES AND SERVICE DELIVERY PLANS Providing necessary infrastructure to foster growth and be a EXCELLENCE FOR NIAGARA REGION’S DIVERSE PROGRAM AREAS AND SPECIAL catalyst to attract investment. Building upon our strong internal foundation. INITIATIVES. PRIORITY AREAS IDENTIFIED BY REGIONAL COUNCIL: The Region is committed to advancing these priority BUILDING A LABOUR-READY areas and will regularly monitor and evaluate our progress WORKFORCE based on six performance outcomes including: Growth, Economies are facing rapid change and unique skills and Employment, Taxation, Community Symptoms, Investment training are required to stay ahead of competition. and Infrastructure. To learn more about the Region’s Strategic Priorities POSITIONING NIAGARA GLOBALLY and performance outcome indicators, visit Diversifying Niagara’s population, economy and niagararegion.ca/priorities. opportunities.

2017 NIAGARA REGION ANNUAL REPORT | 14 2017 NIAGARA REGION ANNUAL REPORT | 15 2017 ACHIEVEMENTS MOVING PEOPLE AND GOODS POSITIONING NIAGARA GLOBALLY Building on our commitment to expand inter-municipal In 2017 Niagara Region was actively involved in the $3.9 million dollars was invested in a new state of the Niagara is now positioned to be the first municipality transit throughout Niagara, the Region worked with the maintenance, rehabilitation and construction of roadways art Data Centre that will be used by a number of public awarded with the federal Economic Trade Corridor local area municipalities to establish a permanent role for through Niagara. Specifically: sector partners. The new Data Centre provides improved designation giving Niagara a significant competitive the Region in the delivery of inter-municipal transit services. • 750 centreline km of roads maintained security, scalability and is designed to provide a high level advantage over other municipalities in Canada. In 2017 • 8.6 lane km of roads rehabilitated of availability for internal and external services. Team Niagara was re-established with the mandate to build Regional Council approved the creation of a GO stronger partnerships with Canadian Consulate offices • 51.4 lane km of roads repaired through the asphalt Implementation Office to support the development of the The Niagara Open Data Portal is not publishing over 280 throughout the US. Niagara’s Foreign Trade Zone Designation three GO stations in Grimsby, St. Catharines and Niagara overlay program data sets from a variety of community partners resulting is the first established in Ontario an provides an enhanced Falls and the associated capital works projects needed to in Niagara Region being recognized as the top-tier marketing platform for companies interested in international make sure Niagara is ready for daily GO trains when they FOSTERING INNOVATION, municipality in Canada on Public Sector Digest’s 2017 trade. arrive. Open City Index. The Open City Index allows participating INVESTMENT AND ENTREPRENEURSHIP organizations to compare themselves against their peer Niagara hosted several international delegations including: The Transportation Master Plan (TMP) was approved Given the increased amount of economic activity in groups and track and audit their openness over time. India, Czech Republic, Ukraine, South Africa, Cuba, and led by Regional Council on July 20, 2017. The development Niagara, the unprecedented amount of new investment in a variety of investment missions to Europe and the United of the TMP involved extensive public and stakeholder commercial and industrial building construction, and the BUILDING A LABOUR-READY States. In collaboration with Hamilton and Western New consultation and input. With the TMP now complete we level of new business and job creation, Niagara is well- York, Niagara Region directed the creation and successful have a comprehensive strategic planning document that positioned for continued economic growth. WORKFORCE submission of the Amazon HQ2 proposals leading to stronger defines policies, programs and infrastructure improvements In 2017, there were 12,567 businesses in Niagara that relationships between our municipalities to pursue further Niagara Region spearheaded a long-term economic required to address transportation and growth needs from employed people, an increase of 356 businesses over economic development opportunities. today through to 2041. development master plan with Brock University and Niagara the past two years. Employers added 2,939 new jobs in College providing a roadmap for regional stakeholders when Niagara between 2016 and 2017. This economic growth developing their own strategic plans. and job creation has resulted in the remarkable drop in the unemployment rate. 2017 NIAGARA REGION ANNUAL REPORT | 16 2017 NIAGARA REGION ANNUAL REPORT | 17 SUPPORTING OUR COMMUNITY DOING BUSINESS DIFFERENTLY ADVANCING ORGANIZATIONAL REGIONAL CHAIR’S GOLF TOURNAMENT UNITED WAY In October, Niagara Region opened the doors to the new EXCELLENCE Through the very generous support of last year’s sponsors and Regional employees also raised $250,000 through the Regional Courthouse in Welland. The $12.4 million, 20,400 The Region took several steps last year to ensure we have a participants, the 20th Annual Niagara Regional Chair’s Charity 2017/18 United Way Campaign. Employees donated square-foot engineering marvel was built on time and on strong organizational foundation of stability and innovation. Golf Tournament was able to contribute to the efforts of the both through voluntary payroll deductions, and budget and will service the residents of Niagara as the new Council approved the first ever Regional Councillor Expense Hotel Dieu Shaver, United Way and other charities making a real through numerous fundraising events. Money donated Provincial Offenses Act courthouse from its home on East Policy, including posting of 20 years of Councillor expenses difference in Niagara. through the United Way campaign is invested in more Main St. in Welland. on Niagara Region’s Open Data website to enhance than 80 programs and services across the region that accountability and transparency. help create safe and inclusive communities for all of The construction of the new facility was not only Niagara. environmentally conscious, but the attention to In order to better serve the residents of Niagara, Council environmental detail led to the prestigious LEED Silver has directed $1.4 million towards customer service Together, we have surpassed $1.7 million in donations certification. The white roof membrane refracts heat and initiatives which includes the creation of a customer service REGION raised for charities in the Niagara region. RA AL saves energy, naturally sourced limestone was used to GA C division. 2017 also saw the implementation of the Asset A H I A reduce fumes from trucking and there are four charging N I Management Plan ensuring the Region is correctly planning R E ’ stations for electric cars available to the public as well as H S

for the future replacement and maintenance costs of over T staff. The windows contain thousands of little white dots $7 billion in assets. C T and a coating that prevents birds from crashing into them. H A N R E M I T A Y N G O L F T O U R

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