2019 Annual Report
0650-20-00
Contents
1. Metchosin Council 2018 ...... 1
2. Report on 2018 Services and Operations ...... 3
3. Progress Report on 2018 Objectives and Measures ...... 9
4. Statement of 2019 and 2020 Objectives and Measures ...... 12
5. Declarations and Disqualification of Council Members ...... 14
6. Value of 2018 Permissive Tax Exemptions ...... 14
7. Audited Financial Statements 2018…………………..………encl.
District of Metchosin, 4450 Happy Valley Road, Victoria, BC V9C 3Z3 telephone: 250.474.3167 fax: 250.474.6298 www.metchosin.ca
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1. Metchosin Council 2018
Mayor John Ranns Councillor Bob Gramigna Councillor Moralea Milne Councillor Andy MacKinnon Councillor Kyara Kahakauwila
Council Standing Committees
Finance and Environment Committee Councillor Milne, Chair Planning Committee Councillor Gramigna, Chair Parks Committee Councillor MacKinnon, Chair Highways and Public Works Committee Councillor Kahakauwila, Chair
Advisory Committees to Council (*member list as of October 2018) Agricultural Advisory Environmental Advisory Healthy Community Select Committee Select Committee Advisory Select Committee
Robin Tunnicliffe, Chair William Cave, Chair Shannon Carmen, Chair *Councillor MacKinnon *Councillor Milne (Liaison) *Councillor Kahakauwila (Liaison) Erin Van de Water (Liaison) Brent Donaldson Michael Fischer Jane Hammond John Buchanan Norm Hardy Peter Havers Alex Fletcher Jacqueline Clare Betty Hildreth Tom Henry Todd Manning Shelly Donaldson Anne Richmond Andy MacKinnon (non- Joel Roszmann Karen Hoffman voting member) Sarah Wade Bob Mitchell Jennifer Burgis Russ Chipps (BBFN) Heritage Advisory Select Parks and Trails Advisory Committee Select Committee
Gaert Linnaea, Chair Mark Atherton, Chair *Councillor MacKinnon *Councillor MacKinnon (Liaison) (Liaison) Robert Patterson Bonnie Farris, Trails Christopher Pratt Coordinator Janice Poulin Lee Johnston Isabel Tipton Ron Aubrey Kyle McStravick Jim Nan Joseph Barrs Brent Donaldson Ellen Dewar Gord Stodola District of Metchosin, 4450 Happy Valley Road, Victoria, BC V9C 3Z3 telephone: 250.474.3167 fax: 250.474.6298 www.metchosin.ca
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Metchosin Council 2018 (following the October 20th, 2018 General Local Election)
Mayor John Ranns Councillor Kyara Kahakauwila Councillor Andy MacKinnon Councillor Sharie Epp Councillor Marie-Térèse Little
Council Standing Committees (*member list as of November 5, 2018)
Finance and Environment Committee Councillor MacKinnon, Chair Planning Committee Councillor Kahakauwila, Chair Parks Committee Councillor Little, Chair Public Works Committee Councillor Epp, Chair
Advisory Committees to Council (*member list as of November 5, 2018)
Agricultural Advisory Environmental Advisory Healthy Community Select Committee Select Committee Advisory Select Committee Robin Tunnicliffe, Chair William Cave, Chair Shannon Carmen, Chair *Councillor Little *Councillor MacKinnon *Councillor Epp (Liaison) (Liaison) (Liaison) Jane Hammond Brent Donaldson Erin Van de Water Peter Havers John Buchanan Michael Fischer Betty Hildreth Alex Fletcher Norm Hardy Shelly Donaldson Tom Henry Jacqueline Clare Joel Roszmann Anne Richmond Todd Manning Sarah Wade Karen Hoffman Andy MacKinnon (non- Jennifer Burgis Bob Mitchell voting member) Russ Chipps (BBFN)
Heritage Advisory Select Parks and Trails Advisory Committee Select Committee Gaert Linnaea, Chair Mark Atherton, Chair *Councillor Epp *Councillor Little (Liaison) (Liaison) Bonnie Farris, Trails Robert Patterson Coordinator Christopher Pratt Lee Johnston Janice Poulin Ron Aubrey Isabel Tipton Jim Nan Kyle McStravick Brent Donaldson Joseph Barrs Ellen Dewar Gord Stodola
District of Metchosin, 4450 Happy Valley Road, Victoria, BC V9C 3Z3 telephone: 250.474.3167 fax: 250.474.6298 www.metchosin.ca
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2. Report on 2018 Services and Operations
General Government Summary
In the fourth year of Council’s term, Metchosin Council acted on completing past initiatives and objectives. These included maintaining fiscal accountability, public works infrastructure projects, and school site visioning.
On December 10, 2018, the District of Metchosin, Beecher Bay (Sc’ianew) First Nation and Pearson College UWC signed a Memorandum of Understanding (MOU) that will see the parties work together to develop a common vision for the lands known as Mary Hill.
The municipality continued to rely on contracted service providers for many professional services including, financial reporting, land use planning, subdivision approval, transportation planning, and bylaw enforcement.
The 2018 General Local Election held October 20th, 2018 drew 1,619 voters who elected three incumbent candidates and two new councillors to council.
We would like to recognize the many years of contributions to Metchosin by the late Councillor Moralea Milne – she was a passionate steward and advocate for the environment and a champion of fiscal responsibility. Moralea always worked towards making the world a better place. She will be sorely missed by everyone.
“The environment is the lens through which I view every decision.” Moralea Milne
Budgets and Property Tax Rates
Year Value of Average Residential Tax Total Budget Average Residential Tax Rate Increase household Taxes (Municipal) (Municipal) (Municipal) 2018 $737,697 $999.14 1.3544 1.9% $6,407,748 2017 $589,664 $968.46 1.6424 1.8% $6,532,085 2016 $544,041 $960.89 1.6424 2.1% $6,013,710 2015 $535,942 $941.97 1.7576 1.9% $6,280,146 2014 $ 541,881 $ 920.01 1.6978 0.9% $5,124,379
District of Metchosin, 4450 Happy Valley Road, Victoria, BC V9C 3Z3 telephone: 250.474.3167 fax: 250.474.6298 www.metchosin.ca
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Land Use, Planning & Environmental Services
In 2018, the Planning Department worked on some key Council priorities, and prepared workshop presentations on Short Term Vacation Rentals, the Soil Deposit and Removal Bylaw and changes required to address the legalization of cannabis. All three workshops resulted in changes to the District’s bylaws.
The Business Licence Bylaw was amended to require licences for properties that are being rented for terms of less than 30 days (short-term rentals), as well as those used for boarding. The changes were intended to be a first step while Council considers whether further changes or policies are needed to control short-term rental use in the District. Once council approved changes, staff prepared an information newsletter that was mailed out to residents, as well as a Good Neighbour Brochure and licence application form.
The soil bylaw amendments introduced graduated requirements and standards to reflect the increased complexity of larger volume soil deposits, and required applicants to mitigate risks and provide the monitoring, assurances and expertise required for the scale of the application.
Cannabis changes were introduced to the Land Use Bylaw to limit both the cultivation and retail sales of cannabis in the District.
Other planning activities included the processing of development permits (3), development variance permits (3), TUP renewal (1), TUP and non-farm use (1). The department also worked on the approval of the Regional Growth Strategy, which requires adoption by all the region’s municipalities, and participated in council orientation process for the newly elected Council at the end of the year.
The planner was also active in participating in regional planning initiatives, and worked together with neighbouring municipalities to review the proposed Master Plan for Olympic View. Staff completed the annual corporate and community Climate Action reporting to the province to secure grants funding.
Land Use Applications
Year Rez Temporary Dev Dev Board Soil Soil Tree Subd /OCP Use Permit Permit Variance of Deposit Removal Cutting Permit Variance 2018 0 0 1 3 0 8 0 6 1 2017 2 0 1 3 0 7 0 9 1 2016 2 1 4 0 0 6 0 7 1 2015 0 0 2 3 1 13 0 7 4 2014 0 0 4 1 0 5 0 13 0
District of Metchosin, 4450 Happy Valley Road, Victoria, BC V9C 3Z3 telephone: 250.474.3167 fax: 250.474.6298 www.metchosin.ca
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Building Regulation Services
Building Regulation Services issues permits and inspects construction projects for health and safety and to ensure that construction in Metchosin complies with the BC Building Code and municipal bylaws. This service operates on a cost recovery basis. Building permit fees are meant to cover the costs of providing this service. There were a total of 72 building permits issued in 2018.
Year Building Permit Revenue Building Number of (Based on value of construction) Permits Issued New Homes 2018 $69,131 72 9 2017 $101,415 75 11 2016 $44,550 49 4 2015 $ 48,918 46 7 2014 $ 37,738 61 4
Fire Protection and Rescue Services
The Metchosin Fire Department provides fire and rescue services to the citizens of Metchosin through six distinct service areas: fire suppression, fire prevention, fire & life safety education, first responder (medical) program, fire inspections and rescue (vehicle crashes, rope rescue, animal rescue, etc.).
The Metchosin Fire Department trains to a Full-Service Level under the British Columbia Fire Service Playbook, which outlines levels of service and minimum required training standards for all municipal and regional fire departments.
Capital purchases in 2018 included a new generator for the Engine, Rapid Intervention Team pack required for firefighter safety, and additional forestry equipment. We also investigated options for adding a vehicle exhaust extraction system to the apparatus bay as required by WorkSafeBC BC regulations.
We continue to engage in a successful joint recruit training program with Sooke Fire and Rescue Services. This has proven a very effective model and is being looked at by other regional agencies as a means to increase consistency in recruitment, retention and comradery, as well as in efforts to reduce training costs.
District of Metchosin, 4450 Happy Valley Road, Victoria, BC V9C 3Z3 telephone: 250.474.3167 fax: 250.474.6298 www.metchosin.ca
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Year Total Fires First Open Motor Other Call Outs Response Burning Vehicle (including Accidents alarm bells and assist other agency) 2018 494 calls 94 158 56 63 123 2017 475 calls 109 162 36 58 110 2016 469 calls 119 117 38 64 131 2015 477 calls 127 140 80 51 79 2014 462 calls 133 159 67 36 67
Metchosin Emergency Program
The District of Metchosin Emergency Program involves five components: Search and Rescue, Emergency Communications, Emergency Social Services, Emergency Operations Center and the Neighborhood Emergency Preparedness Program.
We continue to build resiliency and preparedness efforts throughout the community through free public information sessions held on the third Tuesday of every month. These have been well received and attended as we go into our fourth year of educational sessions.
In working with the Metchosin Seniors Resource Centre, we were able to receive a grant from the Province and create a Fragile Reception Centre with equipment and supplies for those that may require special assistance during a disaster. Items of importance include a calming care location, high profile cots and personal need kits specific for those with limited mobility or medical issues.
Our community engagement continues to progress through constantly increasing numbers of Neighborhood Emergency Preparedness Programs throughout the District. Also noted, is the substantial increase in volunteers working within the Emergency Program, in particular, the emergency communications component of the Program.
While we did not have any formal EOC Activations last year, we did have the Tsunami Warning early in the year, which tested various local communication and emergency response processes. The rest of the year was spent refining those processes. We received great feedback from the public response meeting and hope to have solved many of the gaps and concerns that were noted.
A special note of thanks to all our Emergency Program Volunteers – in particular our Management Team, who are dedicated and ‘at the ready’ for anything that may occur. This handful of volunteers spends hours of time to ensure our community has the proper protocols, equipment and processes in place. Their commitment to the safety of this community is steadfast, and without them we would not have the framework and organization we rely on during a disaster.
District of Metchosin, 4450 Happy Valley Road, Victoria, BC V9C 3Z3 telephone: 250.474.3167 fax: 250.474.6298 www.metchosin.ca
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Transportation and Road Maintenance
The District of Metchosin’s Public Works Department consists of three full time employees whose main function includes road and bridge maintenance and planning, as well as street lighting and other expenditures related to the District’s road network. In addition, road maintenance works also includes mowing and brushing of roadside vegetation, the placement of centre line reflectors as well as roadside trail maintenance. The Public Works employees provide a fast and effective snow and ice control at all hours of the day or night.
The Public Works crew undertook several capital roads projects including the bank stabilization at Ruby Creek and Lombard Road culvert extension.
Public Requests for Road Maintenance Service
Year Roads Ploughing/ Signs Highway Misc Garbage Carcasses Mowing Admin 2018 180 13 23 0 13 42 55 2017 173 38 29 0 10 46 42 2016 158 1 18 2 7 25 24 2015 190 1 5 1 11 22 38 2014 114 13 15 14 25 23 29
Community Parks, Trails and Municipal Grounds
Community parks and trails are maintained by a group of dedicated volunteers. The Parks and Trails Advisory Select Committee continues to advocate for consideration of additional roadside trails whenever the municipality undertakes new road paving work or when CRD installs new water lines.
Bylaw Enforcement
The Municipality provides bylaw enforcement services on a complaint basis. The Chief Administrative Officer determines which bylaw issues are addressed by staff at a preliminary level and which are forwarded to contracted bylaw enforcement services.
Complaints Received
Year Land Use Building Tree Cutting Misc Noise Bylaw (soil & blasting) 2018 47 3 7 2 6 2017 31 2 6 4 7 2016 35 4 2 3 12 2015 23 2 3 3 8 2014 27 2 5 3 4 District of Metchosin, 4450 Happy Valley Road, Victoria, BC V9C 3Z3 telephone: 250.474.3167 fax: 250.474.6298 www.metchosin.ca
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Contracted Services
Year Contracted Soil Land Use Noise Unsightly Fine Services Cost Bylaw Bylaw Bylaw Premises Revenue
2018 $15,120.00 41.0 hrs 38.75 hrs 14.75 hrs 21.75 hrs $200 2017 $14,760.00 23.0 hrs 33.50 hrs 17.00 hrs 26.50 hrs $300 2016 $14,040.00 19.50 hrs 51.25 hrs 4.50 hrs 10.25 hrs $100 2015 $14,742.00 88.75 hrs 17.50 hrs 32.00 hrs 4.00 hrs $1492 2014 $ 12,100.73 45.50 hrs 47.25 hrs 22.50 hrs 6.25 hrs $0
Animal Control Services
Animal Control services are contracted to the Capital Regional District. Fine revenue is collected by the CRD in lieu of payment for the service.
Year Patrol Hours Fine Revenue Impounds Tickets/ (to CRD) Warnings 2018 312 hours $1,019.00 22 41 2017 272.50 hours $1,325.00 32 33 2016 286.25 hours $1,176 31 20 2015 333 hours $703 25 37 2014 405.30 hours $2079 33 26
Policing
The policing budget consists of Metchosin’s share of the West Shore RCMP services. The District of Metchosin is currently charged 50% of policing costs. The 2016 census for Metchosin was 4,708. If population increases over 5,000 in the 2021 census policing costs would increase in 2022 as the District would have to pay 70% of our policing costs.
Recreation
The District of Metchosin is a co-owner of the West Shore Parks and Recreation Centre, along with View Royal, Colwood, Langford and Highlands.
Library Services
The District of Metchosin is a member of the Greater Victoria Public Library system which provides library services to Metchosin residents primarily from the Juan de Fuca Branch. Metchosin is a co-owner of the JDF Branch Building along with Highlands, Langford and Colwood.
District of Metchosin, 4450 Happy Valley Road, Victoria, BC V9C 3Z3 telephone: 250.474.3167 fax: 250.474.6298 www.metchosin.ca
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3. Progress Report on 2018 Objectives and Measures
Objectives Completion Progress Goal Fiscal Accountability Develop a long term financial plan 2018 Ongoing Identify Service Levels 2018 Ongoing Setting up ongoing fiscal revenue for the 2018 Ongoing Metchosin School site through lease agreements Roads Capital Projects Purchase new Dodge 5500 vehicle 2018 Complete Ruby Creek stabilization project 2018 Ongoing Replace Neild Road Culverts 2018 Ongoing Resurface and culvert replacement Dallimore 2018 Complete Road Resurface and culvert replacement Winter 2018 Complete Road Resurface and culvert replacement Duke Road 2018 Complete Resurface and culvert replacement Farhill 2018 Complete Road Resurface and culvert replacement Metchosin 2018 Ongoing Road Rd (Bilston Bridge to 3925 Metchosin Road) Road Maintenance Service Maintain superior level of roads maintenance 2018 Ongoing and snow clearing service Increase in suspect trees 2018 Ongoing Extensive patching on Lindholm Road 2018 Complete Lomax and Metchosin Road T-Section Repair 2018 Ongoing Rocky Point and East Sooke T-Section Repair 2018 Complete Sink hole on Park Drive 2018 Complete Line Painting on all primary, secondary and 2018 Complete newly paved roads Trails and Recreation Maintenance and development of roadside 2018 Ongoing trails Ongoing maintenance of existing trail system 2018 Ongoing and future trail connectivity Parks Donation Program Review 2018 Ongoing Memorial Bench Inventory 2018 Ongoing New Parks & Trails Signage/Updating existing 2018 Ongoing signage
District of Metchosin, 4450 Happy Valley Road, Victoria, BC V9C 3Z3 telephone: 250.474.3167 fax: 250.474.6298 www.metchosin.ca
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Progress Report on 2018 Objectives and Measures Con’t
Objectives Completion Progress Goal Village Centre Beautification of corner at intersection of 2018 Complete Happy Valley and Metchosin Road Fire Rescue Services Establish relationships and communication 2018 Ongoing with various groups and organizations throughout the District Review and Update Operational Guidelines 2018 Ongoing NFPA Officer Training 2018 Complete Hose Replacement Plan 2018 Ongoing Upgrade OHS Program 2018 Ongoing Review OFC Playbook Service Levels 2018 Ongoing Upgrade hydraulic tools for Fire Department 2018 Complete Review technical training to NFPA Standards 2018 Ongoing Upgrade of CREST radio systems 2018 Ongoing Increase awareness in our Fire Smart property 2019 Ongoing reviews and sprinkler protection program throughout the District FUS Tender Shuttle Accreditation 2018 Complete Emergency Preparedness Program Food supply for reception centre 2018 Ongoing Review and Equipment Upgrade 2018 Ongoing Community Wildfire Protection Plan 2018 Ongoing District Disaster Communication Plan 2018 Ongoing Review and upgrade various equipment 2018 Ongoing within the EOC Initiate new Advisory Committees with the 2019 Complete Emergency Program: Medical Response, Fragile Community, Drone Program, Care & Compassion, Large Animal Response and GIS Increase NEPP network 2018 Ongoing Upgrade our Community Emergency 2019 Ongoing Communication Network Finalize, Test & Implement our newly 2019 Ongoing initiated Disaster Medical Response Plan Healthy Community Investigate new initiatives/public spaces 2018 Ongoing Metchosin Village Square Project (Public 2018 Complete Spaces) – Phase I
District of Metchosin, 4450 Happy Valley Road, Victoria, BC V9C 3Z3 telephone: 250.474.3167 fax: 250.474.6298 www.metchosin.ca
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Progress Report on 2018 Objectives and Measures Con’t
Objectives Completion Progress Goal Environment Continue Bullfrog Control Program 2018 Ongoing Host annual Bio Blitz 2018 Ongoing Host annual Fireproof Metchosin Day 2018 Ongoing Tackle Tansy Ragwort Day 2018 Ongoing Insect mortality project 2019 Ongoing Produce ground water study brochure 2019 Ongoing Agriculture Encourage new farmers and growers in 2018 Ongoing Metchosin Construction of additional shelter for 2018 Complete Metchosin Farmer’s Market Band Shelter for Metchosin Farmer’s Market 2019 Ongoing Draft Firearm Bylaw amendment to mitigate 2018 Ongoing geese Heritage Pioneer Map Project Presentations to local 2018 Complete schools Heritage Roadside Signage 2018 Ongoing First Nation Signage 2018 Ongoing Municipal Hall Records Management Review 2018 Ongoing Indoor drinking water fountain 2018 Ongoing Food serving trolley 2018 Complete Interior painting of Municipal Hall 2018 Complete
District of Metchosin, 4450 Happy Valley Road, Victoria, BC V9C 3Z3 telephone: 250.474.3167 fax: 250.474.6298 www.metchosin.ca
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4. 2019 and 2020 Objectives and Measures
Objectives Completion Fiscal Accountability Develop a long term financial Plan Ongoing Identify Service Levels Ongoing Setting up fiscal revenue for the Metchosin School site Ongoing through lease agreements General Government Bylaw Enforcement Workshop 2019 Policy Review Ongoing Regulatory Bylaw Review Ongoing Road Maintenance Service and Capital Projects Maintain superior level of roads maintenance and snow Ongoing clearing service Resurface Metchosin Road (Bilston Bridge to Briarwood 2019 Lane), Jelinek, Witty Beach, Brotherstone, Cactus, and Elna Roads, Culvert Replacement and patching on Aquarius and Libra 2019 Roads Culvert Replacement on Witty Beach, Derrien, William 2019 Head and Neild Roads Witty Beach stair tread replacement Complete Bank Stabilization at Bilston Bridge Complete Public Works Yard Upgrades Ongoing Purchase new 5 ton dump truck Complete 2020 Road resurfacing program (Eales Rd, Kasani Pl, 2020 Seaspray Dr, and Stillmeadow Rd) Trails and Recreation Maintenance and development of roadside trails Ongoing Greenspace Review Ongoing Ongoing maintenance of existing trail system and future Ongoing trail connectivity Parks Donation Program Review 2019 Memorial Bench Inventory 2019 New Parks & Trails Signage/Updating existing signage 2019 Eradication of English Holly from Metchosin parks Ongoing Fire Rescue Services Implementation of Technical Rescue Team 2019 Review/Update of Operational Guidelines Ongoing Occupational Health & Safety Committee Update & Ongoing Review Initiate discussions with BCEHS to review medical call Ongoing response District of Metchosin, 4450 Happy Valley Road, Victoria, BC V9C 3Z3 telephone: 250.474.3167 fax: 250.474.6298 www.metchosin.ca
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2019 and 2020 Objectives and Measures Con’t
Objectives Completion Emergency Preparedness Program Grow Inter-Municipal relationships Ongoing Review and Upgrade of Equipment Ongoing Community Wildfire Protection Plan Ongoing District Evacuation Plan 2019 Increase Neighbourhood Emergency Preparedness Ongoing Program Exercise Disaster Medical Response Plan Ongoing Enhance Emergency Advisory Committees Ongoing Healthy Community Investigate new initiatives/public space consultation Ongoing Connector trail on municipal grounds from Happy Valley Ongoing to Madill Trail Directional signage for municipal grounds Ongoing Environment Continue Bullfrog Control Program Ongoing Host annual Bio Blitz Ongoing Host annual Fireproof Metchosin Day Ongoing Tackle Tansy Ragwort Day – move to invasive species day Complete Insect mortality project Ongoing Produce ground water study brochure Ongoing Agriculture Encourage new farmers and growers in Metchosin Ongoing Band Shelter for Metchosin Farmer’s Market Complete Draft Firearm Bylaw amendment to mitigate geese Ongoing Heritage Heritage Roadside Signage Ongoing First Nations Signage Ongoing Municipal Hall Indoor drinking water fountain Ongoing Exterior Painting of Municipal Hall Ongoing Carpet replacement in Municipal Hall Complete
District of Metchosin, 4450 Happy Valley Road, Victoria, BC V9C 3Z3 telephone: 250.474.3167 fax: 250.474.6298 www.metchosin.ca
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5. Declarations of Council Member Disqualification
In 2018, no council members or former council members were declared disqualified from holding office under section 111 of the Community Charter.
6. Value of 2018 Permissive Tax Exemptions
Property Municipal Total Tax Portion Exemption
Charitable, Philanthropic or other Not For Profit Corporations 4401 William Head Road (Metchosin $ 1,568.05 $ 3,463.69 Community Hall)
1020 Malloch Road (BC SPCA) $ 8,812.89 $ 21,594.58
Glinz Lake Road (Camp Thunderbird Society $ 31,131.52 $ 68,767.03 YMCA)
3898 Metchosin Road (Boys & Girls Clubs of $ 13,409.96 $ 31,060.61 Greater Victoria Foundation)
Land & Buildings for Public Worship and Halls 4125 Metchosin Road (Anglican Synod of the $ 3,552.36 $ 7,846.87 Diocese of British Columbia)
Heritage 4354 Metchosin Road (Anglican Synod of the $ 3,027.04 $ 6,686.49 Diocese of British Columbia)
*Please note, Montessori School, 4075 Metchosin Road, has been removed from the permissive tax exemptions list. Legislation has changed. All land surrounding private schools is now statutorily exempted so permissive is no longer required.
District of Metchosin, 4450 Happy Valley Road, Victoria, BC V9C 3Z3 telephone: 250.474.3167 fax: 250.474.6298 www.metchosin.ca
Consolidated Financial Statements of
THE DISTRICT OF METCHOSIN
Year ended December 31, 2018 THE DISTRICT OF METCHOSIN Consolidated Financial Statements
Year ended December 31, 2018
Financial Statements
Management's Responsibility for the Consolidated Financial Statements 1
Independent Auditors' Report 2
Consolidated Statement of Financial Position 5
Consolidated Statement of Operations 6
Consolidated Statement of Change in Net Financial Assets 7
Consolidated Statement of Cash Flows 8
Notes to Consolidated Financial Statements 9 MANAGEMENT'S RESPONSIBILITY FOR THE CONSOLIDATED FINANCIAL STATEMENTS
The accompanying consolidated financial statements of The District of Metchosin (the "District") are the responsibility of management and have been prepared in compliance with applicable legislation and in accordance with public sector accounting principles for local governments established by The Chartered Professional Accountants of Canada. A summary of the significant accounting policies are described in note 1 to the consolidated financial statements. The preparation of financial statements necessarily involves the use of estimates based on management’s judgment, particularly when transactions affecting the current accounting period cannot be finalized with certainty until future periods.
The District’s management maintains a system of internal controls designed to provide reasonable assurance that assets are safeguarded, transactions are properly authorized and recorded in compliance with legislative and regulatory requirements, and reliable financial information is available on a timely basis for preparation of the consolidated financial statements. These systems are monitored and evaluated by management.
Mayor and Council meet with management and the external auditors to review the consolidated financial statements and discuss any significant financial reporting or internal control matters prior to their approval of the consolidated financial statements.
The consolidated financial statements have been audited by KPMG LLP, independent external auditors appointed by the District. The accompanying Independent Auditors’ Report outlines their responsibilities, the scope of their examination and their opinion on the District’s consolidated financial statements.
Chief Administrative Officer
1 KPMG LLP St. Andrew's Square II 800-730 View Street Victoria BC V8W 3Y7 Canada Telephone (250) 480-3500 Fax (250) 480-3539
INDEPENDENT AUDITORS' REPORT
To the Mayor and Councilors of The District of Metchosin
OPINION We have audited the consolidated financial statements of the District of Metchosin (the “District”), which comprise:
the consolidated statement of financial position as at end of December 31, 2018 the consolidated statement of operations for the year then ended the consolidated statement of changes in net financial assets for the year then ended the consolidated statement of cash flows for the year then ended and notes to the consolidated financial statements, including a summary of significant accounting policies
(Hereinafter referred to as the “financial statements”). In our opinion, the accompanying financial statements present fairly, in all material respects, the consolidated financial position of the District as at December 31, 2018 and its consolidated results of operations, its consolidated changes in net financial assets and its consolidated cash flows for the year then ended in accordance with Canadian public sector accounting standards.
BASIS FOR OPINION We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the “Auditors’ Responsibilities for the Audit of the Financial Statements” section of our auditors’ report.
We are independent of the District in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada and we have fulfilled our other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
RESPONSIBILITIES OF MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE FOR THE FINANCIAL STATEMENTS Management is responsible for the preparation and fair presentation of the 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 financial statements that are free from material misstatement, whether due to fraud or error.
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. 2 The District of Metchosin
In preparing the financial statements, management is responsible for assessing the District’s ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the District or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the District’s financial reporting process.
AUDITORS’ RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.
As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit 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 District's internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the District's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the District to cease to continue as a going concern.
3 The District of Metchosin
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. Communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group Entity to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
Chartered Professional Accountants
Victoria, Canada April 15, 2019
4 THE DISTRICT OF METCHOSIN Consolidated Statement of Financial Position
December 31, 2018, with comparative information for 2017
2018 2017
Financial assets: Cash and cash equivalents (note 2) $ 10,837,590 $ 9,691,989 Accounts receivable 115,075 199,798 Taxes receivable 154,721 152,845 Other assets 32,684 26,224 11,140,070 10,070,856
Financial liabilities: Accounts payable and accrued liabilities 1,143,043 1,227,070 Deposits payable 242,697 230,950 Prepaid property taxes 244,792 243,086 Wages and benefits payable (note 3) 189,875 179,782 Deferred revenue (note 4) 269,595 276,160 2,090,002 2,157,048
Net financial assets 9,050,068 7,913,808
Non-financial assets: Tangible capital assets (note 5) 35,814,423 36,176,576 Prepaid expenses 22,825 20,975 35,837,248 36,197,551
Commitments and contingencies (note 9)
Accumulated surplus (note 6) $ 44,887,316 $ 44,111,359
The accompanying notes are an integral part of these consolidated financial statements.
On behalf of the District:
Chief Administrative Officer
5 THE DISTRICT OF METCHOSIN Consolidated Statement of Operations
Year ended December 31, 2018, with comparative information for 2017
Financial plan 2018 2017 (note 10)
Revenue: Taxes levied for municipal purposes (note 7) $ 2,463,557 $ 2,519,328 $ 2,438,161 Net grants in lieu of taxes 1,115,691 1,121,997 1,115,570 Sales and user fees 537,500 719,465 593,885 Government transfers (note 8) 860,000 904,625 924,083 Investment income 94,500 189,336 120,287 Penalties and interest 22,000 30,262 26,900 Other 266,500 298,172 527,696 5,359,748 5,783,185 5,746,582 Contributed tangible capital assets - - 1,344,000 Total revenue 5,359,748 5,783,185 7,090,582
Expenses: General government 1,065,697 961,673 802,420 Protective services 733,297 912,332 845,111 Transportation services 1,757,807 1,691,563 1,592,946 Planning and environmental services 108,290 79,010 158,681 Recreation and cultural services 1,408,157 1,362,650 1,250,175 Total expenses 5,073,248 5,007,228 4,649,333
Annual surplus 286,500 775,957 2,441,249
Accumulated surplus, beginning of year 44,111,359 44,111,359 41,670,110
Accumulated surplus, end of year $ 44,397,859 $ 44,887,316 $ 44,111,359
The accompanying notes are an integral part of these consolidated financial statements.
6 THE DISTRICT OF METCHOSIN Consolidated Statement of Change in Net Financial Assets
Year ended December 31, 2018, with comparative information for 2017
Financial plan 2018 2017 (note 10)
Annual surplus $ 286,500 $ 775,957 $ 2,441,249
Acquisition of tangible capital assets (1,834,500) (1,101,948) (2,409,119) Amortization of tangible capital assets 1,216,659 1,473,800 1,202,150 Loss on disposal of tangible capital assets - 6,500 - Contributed tangible capital assets - - (1,344,000) Change in proportionate share of West Shore - (16,199) - (617,841) 362,153 (2,550,969)
Acquisition of prepaid expenses - (1,850) (3,518)
Change in net financial assets (331,341) 1,136,260 (113,238)
Net financial assets, beginning of year 7,913,808 7,913,808 8,027,046
Net financial assets, end of year $ 7,582,467 $ 9,050,068 $ 7,913,808
The accompanying notes are an integral part of these consolidated financial statements.
7 THE DISTRICT OF METCHOSIN Consolidated Statement of Cash Flows
Year ended December 31, 2018, with comparative information for 2017
2018 2017
Cash provided by (used in):
Operating activities: Annual surplus $ 775,957 $ 2,441,249 Items not involving cash: Amortization of tangible capital assets 1,473,800 1,202,150 Loss on disposal of tangible capital assets 6,500 - Contributed tangible capital assets - (1,344,000) Change in proportionate share of West Shore (16,199) - Changes in non-cash operating assets and liabilities: Accounts receivable 84,723 (55,924) Taxes receivable (1,876) 10,604 Other assets (6,460) (4,346) Accounts payable and accrued liabilities (84,027) (118,325) Wages and benefits payable 10,093 9,333 Prepaid property taxes 1,706 (2,170) Deposits payable 11,747 24,355 Deferred revenue (6,565) 46,125 Prepaid expenses (1,850) (3,518) 2,247,549 2,205,533
Capital activities: Acquisition of tangible capital assets (1,101,948) (2,409,119)
Increase (decrease) in cash and cash equivalents 1,145,601 (203,586)
Cash and cash equivalents, beginning of year 9,691,989 9,895,575
Cash and cash equivalents, end of year $ 10,837,590 $ 9,691,989
Supplemental cash flow information: Cash paid for interest $ 1,641 $ 1,672 Cash received from interest 189,336 120,287
The accompanying notes are an integral part of these consolidated financial statements.
8 THE DISTRICT OF METCHOSIN Notes to Consolidated Financial Statements
Year ended December 31, 2018
The District of Metchosin (the "District") is a municipality in the Province of British Columbia and operates under the provisions of the Local Government Act and the Community Charter of British Columbia.
1. Significant accounting policies:
The consolidated financial statements of the District are prepared by management in accordance with Canadian public sector accounting principles for governments as recommended by the Public Sector Accounting Board of the Chartered Professional Accountants of Canada. Significant accounting policies adopted by the District are as follows:
(a) Reporting entity:
The consolidated financial statements reflect the combination of all the assets, liabilities, revenues, expenses, and changes in fund balances and in financial position of the District. The consolidated financial statements of the District includes the District’s proportionate interest in West Shore Parks and Recreation Society (“West Shore”), an organization jointly controlled by the District. The District does not administer any trust activities on behalf of external parties.
(b) Basis of accounting:
The District follows the accrual method of accounting for revenues and expenses. Revenues are normally 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 or services and/or the creation of a legal obligation to pay.
(c) Government transfers:
Government transfers are recognized in the consolidated financial statements as revenues in the period in which events giving rise to the transfer occur, providing the transfers are authorized, any eligibility criteria have been met, and reasonable estimates of the amounts can be made. Transfers received for which expenses are not yet incurred are included in deferred revenue.
(d) Deferred revenue:
Deferred revenue includes contributions received from third parties pursuant to legislation, regulation and agreement which may only be used in certain programs, in the completion of specific work, or for the purchase of tangible capital assets. In addition, certain user charges and fees are collected for which the related services have yet to be performed. Revenue is recognized in the period when the related expenses are incurred, services performed, or the tangible capital assets are acquired thereby extinguishing the related liability.
9 THE DISTRICT OF METCHOSIN Notes to Consolidated Financial Statements (continued)
Year ended December 31, 2018
1. Significant accounting policies (continued):
(d) Deferred revenue (continued):
Development cost charges are amounts which are restricted by government legislation or agreement with external parties. When qualifying expenses are incurred development cost charges are recognized as revenue in amounts which equal the associated expenses.
(e) Property tax revenue:
Property tax revenue is recognized on the accrual basis using the approved mill rates and the anticipated assessment related to the current year.
(f) Investment income:
Investment income is reported as revenue in the period earned. When required by the funding government or related Act, investment income earned on deferred revenue is added to the investment and forms part of the deferred revenue balance.
(g) Cash and cash equivalents:
Cash and cash equivalents include investments in the Municipal Finance Authority of British Columbia (“MFA”) Money Market Funds which are recorded at cost plus earnings reinvested in the funds.
(h) Non-financial assets:
Non-financial assets are not available to discharge existing liabilities and are held for use in the provision of services. They have useful lives extending beyond the current year and are not intended for sale in the ordinary course of operations.
(i) 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, of the tangible capital assets, excluding land, are amortized on a straight line basis over their estimated useful lives as follows:
Asset Useful life - Years
Land improvements 20 - 40 Buildings 20 - 50 Vehicles, machinery and equipment 10 - 25 Roads infrastructure 25 - 100
10 THE DISTRICT OF METCHOSIN Notes to Consolidated Financial Statements (continued)
Year ended December 31, 2018
1. Significant accounting policies (continued):
(h) Non-financial assets (continued):
(i) Tangible capital assets (continued)
Amortization is charged annually, including in the year of acquisition and disposal. Assets under construction are not amortized until the asset is available for productive use.
Tangible capital assets are written down when conditions indicate that they no longer contribute to the District's ability to provide goods and services, or when the value of future economic benefits associated with the asset are less than the book value of the asset.
(ii) Contributions of tangible capital assets
Tangible capital assets received as contributions are recorded at their fair value at the date of receipt and also are recorded as revenue.
(iii) Works of art and cultural and historic assets
Works of art and cultural and historic assets are not recorded as assets in these financial statements.
(iv) Interest capitalization
The District does not capitalize interest costs associated with the acquisition or construction of a tangible capital asset.
(v) Contaminated sites
The District records a liability in its financial statements when contamination on non- active property exceeds an accepted environmental standard and the District is directly responsible, or accepts responsibility for the damage. The liability is measured at the District's best estimate of the costs directly attributable to remediation of the contamination. No contaminated sites liabilities have been recorded in these financial statements.
11 THE DISTRICT OF METCHOSIN Notes to Consolidated Financial Statements (continued)
Year ended December 31, 2018
1. Significant accounting policies (continued):
(i) Employee future benefits:
The District and its employees make contributions to the Municipal Pension Plan. These contributions are expensed as incurred.
Sick leave, vacation pay and other retirement benefits are also available to the District’s employees. Sick leave entitlements are accrued based on the estimated liability based on past history and can only be used while employed by the District. They are not paid out upon retirement or termination of employment. Accrued vacation represents earned and unused vacation amounts at the reporting date. The costs of retirement benefits are determined based on service and best estimates calculated as 1.5 days per year of service greater than 5 years. The obligations under these benefit plans are accrued as the employees render services necessary to earn the future benefits. The benefit amounts are included in wages and benefits payable.
(j) Use of estimates:
The preparation of financial statements in conformity with Canadian public sector accounting standards 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 financial statements, and the reported amounts of revenues and expenses during the period. Significant estimates include assumptions used in estimating historical cost and useful lives of tangible capital assets and in estimating provisions for accrued liabilities including employee future benefits. Actual results could differ from these estimates.
2. Cash and cash equivalents:
2018 2017
Municipal Finance Authority - Money Market Funds $ 9,034,387 $ 8,568,855 Bank deposits 1,803,203 1,123,134
$ 10,837,590 $ 9,691,989
12 THE DISTRICT OF METCHOSIN Notes to Consolidated Financial Statements (continued)
Year ended December 31, 2018
3. Wages and benefits payable:
Included in wages and benefits payable are accrued benefits as at December 31, 2018. This includes accrued sick leave, accrued vacation and retirement benefit.
Municipal Pension Plan
The Municipality and its employees contribute to the Municipal Pension Plan (the 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 benefits. The Plan is a multi-employer defined benefit pension plan. Basic pension benefits are based on a formula. As at December 31, 2018, the plan has about 197,000 active members and approximately 95,000 retired members. Active members include approximately 39,000 contributors from local governments.
The most recent valuation for the Municipal Pension Plan as at December 31, 2015 indicated a $2,224 million funding surplus for basic pension benefits on a going concern basis. The next valuation will be as at December 31, 2018, with results available later in 2019. Employers participating in the Plan record their pension expense as the amount of employer contributions made during the fiscal year (defined 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 allocating the obligation, assets and cost to individual employers participating in the Plan.
The District paid $84,717 (2017 - $83,514) for employer contributions and District employees paid $71,344 (2017 - $68,756) for employee contributions to the plan in fiscal 2018.
GVLRA – CUPE Long-Term Disability Trust
The Trust was established January 1, 1987 as a result of negotiations between the Greater Victoria Labour Relations Association representing a number of employers and the Canadian Union of Public Employees representing a number of CUPE locals. The Trust’s sole purpose is to provide a long-term disability income benefit plan. The District and its employees each contribute equal amounts into the Trust. The total plan provision for approved and unreported claims was actuarially determined as of December 31, 2017. At December 31, 2017, the total plan provision for approved and unreported claims was $17,177,300 with a plan surplus of $3,852,873. The actuary does not attribute portions of the unfunded liability to individual employers. The District paid $10,927 (2017 - $11,579) for employer contributions and District employees paid $10,927 (2017 - $11,579) for employee contributions to the plan in fiscal 2018.
13 THE DISTRICT OF METCHOSIN Notes to Consolidated Financial Statements (continued)
Year ended December 31, 2018
4. Deferred revenue:
2018 2017
Subdivision servicing $ 160,601 $ 160,914 West Shore 108,994 115,246
Total deferred revenue $ 269,595 $ 276,160
14 THE DISTRICT OF METCHOSIN Notes to Consolidated Financial Statements (continued)
Year ended December 31, 2018
5. Tangible capital assets:
Vehicles, Land machinery and Roads Total Total Land improvements Buildings equipment infrastructure 2018 2017
Cost:
Balance, beginning of year $ 8,326,460 $ 522,003 $ 4,911,413 $ 2,259,822 $ 63,101,281 $ 79,120,979 $ 75,642,777 Additions - - 29,228 153,801 935,118 1,118,147 3,753,119 Disposals - - - (56,651) (407,859) (464,510) (274,917) Balance, end of year 8,326,460 522,003 4,940,641 2,356,972 63,628,540 79,774,616 79,120,979
Accumulated amortization:
Balance, beginning of year - 137,650 2,503,766 1,298,495 39,004,492 42,944,403 42,017,170 Disposals - - - (50,151) (407,859) (458,010) (274,917) Amortization - 23,903 250,381 131,117 1,068,399 1,473,800 1,202,150 Balance, end of year - 161,553 2,754,147 1,379,461 39,665,032 43,960,193 42,944,403
Net book value, end of year $ 8,326,460 $ 360,450 $ 2,186,494 $ 977,511 $ 23,963,508 $ 35,814,423 $ 36,176,576
15 THE DISTRICT OF METCHOSIN Notes to Consolidated Financial Statements (continued)
Year ended December 31, 2018
5. Tangible capital assets (continued):
(a) Contributed tangible capital assets:
The District received contributed tangible capital assets consisting of land with a value of nil (2017 - $1,344,000) from a developer.
(b) Tangible capital assets disclosed at nominal values:
Where an estimate of fair value could not be made, the tangible capital asset has been recognized at a nominal value.
(c) Works of art and historical treasures:
The District manages and controls various works of art and non-operational historical cultural assets including artifacts, paintings and sculptures located at District 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 (2017 - nil).
16 THE DISTRICT OF METCHOSIN Notes to Consolidated Financial Statements (continued)
Year ended December 31, 2018
6. Accumulated surplus:
Accumulated surplus consists of unappropriated operating funds, various appropriated operating funds and reserve funds.
2018 2017
Reserve funds: Road Capital and Maintenance $ 1,554,429 $ 1,249,882 General Capital Reserve 92,736 (484,370) Parkland Acquisition Reserve 239,055 235,687 Fire Equipment Replacement Reserve 353,855 202,834 Municipal Equipment Reserve 247,427 270,909 Building Replacement 1,461,486 1,280,455 Gas Tax Reserve 788,202 903,306 4,737,190 3,658,703
Appropriated operating funds: Policing phase-in 1,187,079 1,170,591 Recreation stabilization 835,190 671,399 Tax stabilization 78,266 78,266 Carbon neutral 29,505 31,000 Snow and storm reserve 107,000 199,000 Legal, insurance, consulting 100,000 190,000 Revenue shortfall 276,000 182,000 Public works efficiency 103,228 95,694 Business development 28,000 28,000 Public works minor infrastructure 174,000 145,000 Victoria library 27,169 19,126 Environment reserve 24,000 18,000 Elections reserve 15,000 10,000 Fire equipment reserve 41,142 31,555 Admin computer reserve 5,000 - 3,030,579 2,869,631
Unappropriated operating funds 1,305,124 1,406,449 9,072,893 7,934,783
Equity in tangible capital assets 35,814,423 36,176,576
$ 44,887,316 $ 44,111,359
17 THE DISTRICT OF METCHOSIN Notes to Consolidated Financial Statements (continued)
Year ended December 31, 2018
7. Taxes levied for municipal purposes:
2018 2017
Taxes levied for municipal purposes Property taxes $ 2,450,322 $ 2,373,645 1% utility taxes 69,006 64,516 2,519,328 2,438,161
Taxes levied for other authorities: School authorities 2,049,293 1,862,839 Capital Regional District 360,136 333,796 Capital Regional Hospital District 296,885 272,169 BC Transit 242,176 227,653 BC Assessment Authority 54,171 47,269 Municipal Finance Authority 260 211 Police tax 223,768 191,088 3,226,689 2,935,025
Total property taxes collected $ 5,746,017 $ 5,373,186
8. Government transfers:
The District records the transfer of government funding as expenses or revenues in the period that the events giving rise to the transfer occurred. The Government transfers recorded on the consolidated statement of operations are:
2018 2017
Operating transfers: Provincial $ 628,718 $ 606,999 Other 2,940 3,821 West Shore 5,617 4,709 637,275 615,529
Capital transfers: Gas Tax 267,350 257,929 CRD - 50,625 267,350 308,554
Total revenue $ 904,625 $ 924,083
18 THE DISTRICT OF METCHOSIN Notes to Consolidated Financial Statements (continued)
Year ended December 31, 2018
9. Commitments and contingencies:
(a) The Capital Regional District (the "CRD") debt, under provisions of the Local Government Act, is a direct, joint and several liability of the CRD and each member municipality within the CRD, including the District.
(b) The District is a shareholder and member of the Capital Region Emergency Service Telecommunications (CREST) Incorporated which provides centralized emergency communications, and related public safety information services to municipalities, regional districts, the provincial and federal governments and their agencies, and emergency service organizations throughout the Greater Victoria region and the Gulf Islands. Members’ obligations to share in funding ongoing operations and any additional costs relating to capital assets are to be contributed pursuant to a Members’ Agreement.
(c) As part of the normal course of business, the District has entered into various agreements and contracts for services with periods ranging up to five years. These amounts will be recorded in the accounts in the period that the goods or services are received.
(d) The District is a defendant in various lawsuits for which no liability is reasonably determinable at this time. Should the claims be successful as a result of litigation, amounts will be recorded when a liability is likely and determinable. The District is self-insured through membership in the Municipal Insurance Association of British Columbia. Under this program, member municipalities are to share jointly for general liability claims against any member in excess of $10,000. Should the Association pay out claims in excess of premiums received, it is possible that the District, along with the other participants, would be required to contribute towards the deficit.
10. Financial plan data:
The financial plan data presented in these consolidated financial statements is based upon the 2018 financial plan adopted by Council on May 7, 2018.
19 THE DISTRICT OF METCHOSIN Notes to Consolidated Financial Statements (continued)
Year ended December 31, 2018
11. West Shore Parks and Recreation Society:
(a) Capital asset transfer:
The CRD transferred the lands and facilities comprising the Juan de Fuca Recreation Centre to the following municipal partners (the “Municipalities”) in 2002: City of Langford, City of Colwood, District of Highlands, District of Metchosin, Town of View Royal and the CRD (on behalf of a portion of the Juan de Fuca Electoral Area). Effective January 1, 2018, the Juan de Fuca Electoral Area withdrew as a member of the Society.
The lands and facilities were transferred to the Municipalities in their proportionate share, as specified in the Co-Owners’ Agreement. Future improvements are allocated among the partners as per the cost sharing formula in effect each year for each service or facility, as outlined in a Members’ Agreement. For 2018, the District’s share of improvements purchased by the Society on its behalf is $29,228 (2017 - nil).
Because the cost sharing formula in the Members’ Agreement produces different cost shares for the members from year-to-year, there is an adjustment to increase or decrease the opening fund balances. In 2018, the District recorded a decrease of $16,199 (2017 - nil).
The Municipalities have each become members in the Society, which was incorporated to provide parks, recreation and community services to the Municipalities under contract. Under terms of an Operating, Maintenance and Management Agreement, the Society is responsible to equip, maintain, manage and operate the facilities located at the recreation centre.
20 THE DISTRICT OF METCHOSIN Notes to Consolidated Financial Statements (continued)
Year ended December 31, 2018
11. West Shore Parks and Recreation Society (continued):
(b) Consolidation:
Financial results and financial plan for the Society are consolidated into the District’s financial statements proportionately, based on the cost sharing formula outlined in the Members’ Agreement. In 2018, the District’s proportion for consolidation purposes was 8.541% (2017 - 8.504%). Condensed financial information for the Society is as follows:
2018 2017
Financial assets $ 3,636,125 $ 3,501,452 Financial liabilities 2,233,137 2,260,252
Net financial assets 1,402,988 1,241,200 Non-financial assets 1,030,170 976,001
Accumulated surplus $ 2,433,158 $ 2,217,201
Revenues $ 6,547,215 $ 5,639,648 Requisition from members 4,947,539 4,968,939 11,494,754 10,608,587
Expenses 11,278,796 10,678,481
Annual surplus (deficit) $ 215,958 $ (69,894)
21 THE DISTRICT OF METCHOSIN Notes to Consolidated Financial Statements (continued)
Year ended December 31, 2018
12. Segmented information:
The District is a diversified municipal organization that provides a wide range of services to its citizens. District services are provided by departments and their activities reported separately. Certain functions that have been separately disclosed in the segmented information, along with the services they provide, are as follows:
General Government
The general government operations provide the functions of corporate administration and legislative services and any other functions categorized as non-departmental.
Protective Services
Protective services is comprised of three different functions, including the District’s emergency management agency, fire and regulatory services. The emergency management agency prepares the District to be more prepared and able to respond to, recover from, and be aware of, the devastating effects of a disaster or major catastrophic event that will impact the community. The fire department is responsible for providing critical, life-saving services in preventing or minimizing the loss of life and property from fire and natural or man-made emergencies. The mandate of the regulatory services is to promote, facilitate and enforce general compliance with the provisions of bylaws that pertain to the health, safety and welfare of the community and provide a full range of planning services related to zoning, development permits, variance permits and current regulatory issues.
Transportation Services
Transportation services is responsible for transportation functions including roads and streets. As well, services are provided around infrastructure, transportation planning, pedestrian and cycling issues and on-street parking regulations, including street signs and painting.
Planning and Environmental Services
Planning works to achieve the District's community planning goals through the official community plan and other policy initiatives.
Recreation and Cultural Services
Parks is responsible for the maintenance and development of all park facilities. Recreation services facilitate the provision of recreation and wellness programs and services through West Shore.
The accounting policies used in these segments is consistent with those followed in the preparation of the financial statements as disclosed in Note 1. The following table provides additional financial information for the foregoing segments.
22 THE DISTRICT OF METCHOSIN Notes to Consolidated Financial Statements (continued)
Year ended December 31, 2018
12. Segmented information (continued):
Planning and Recreation General Protective Transportation Environmental and Cultural 2018 Government Services Services Services Services Total
Revenue: Taxation $ 2,809,707 $ - $ - $ - $ 831,618 $ 3,641,325 Sale of service 165,162 36,021 2,741 7,630 507,911 719,465 Government transfers 904,625 - - - - 904,625 Other 299,239 215,045 - - 3,486 517,770 Total revenue 4,178,733 251,066 2,741 7,630 1,343,015 5,783,185
Expenses: Salaries and wages 519,412 369,783 238,526 26,923 - 1,154,644 Contracted services 190,687 94,231 243,694 51,720 1,152,513 1,732,845 Materials and supplies 198,473 366,830 87,326 367 4,668 657,664 Interest and other 4,474 - - - - 4,474 Amortization 48,627 81,488 1,122,017 - 221,668 1,473,800 Change in proportionate share of West Shore - - - - (16,199) (16,199) Total expenses 961,673 912,332 1,691,563 79,010 1,362,650 5,007,228
Annual surplus (deficit) $ 3,217,060 $ (661,266) $ (1,688,822) $ (71,380) $ (19,635) $ 775,957
23 THE DISTRICT OF METCHOSIN Notes to Consolidated Financial Statements (continued)
Year ended December 31, 2018
12. Segmented information (continued):
Planning and Recreation General Protective Transportation Environmental and Cultural 2017 Government Services Services Services Services Total
Revenue: Taxation $ 2,739,373 $ - $ - $ - $ 814,358 $ 3,553,731 Sale of services 135,383 - 1,300 12,412 444,790 593,885 Government transfers 924,083 - - - - 924,083 Other 380,250 264,537 - - 30,096 674,883 Contributed tangible capital assets 1,344,000 - - - - 1,344,000 Total revenue 5,523,089 264,537 1,300 12,412 1,289,244 7,090,582
Expenses: Salaries and wages 512,457 375,285 268,704 44,157 - 1,200,603 Contracted services 184,298 94,397 150,652 114,436 1,195,253 1,739,036 Materials and supplies 87,010 298,483 114,435 88 5,000 505,016 Interest and other 2,528 - - - - 2,528 Amortization 16,127 76,946 1,059,155 - 49,922 1,202,150 Total expenses 802,420 845,111 1,592,946 158,681 1,250,175 4,649,333
Annual surplus (deficit) $ 4,720,669 $ (580,574) $ (1,591,646) $ (146,269) $ 39,069 $ 2,441,249
24