MOVING FORWARD TOGETHER The City of Calgary 2019 Annual Report The City of Calgary, Alberta, Canada | For the year ended December 31, 2019 2 The City of Calgary 2019 Annual Report CONTENTS INTRODUCTION FINANCIAL STATISTICAL Message from the Mayor .................................................................. 1 2019 Financial Statement Discussion & Analysis ...................11 Revenue by Source Unaudited .....................................................84 Corporate Governance and Accountability ............................... 2 Financial Synopsis 2019 Sources of Revenue ..........................34 Expenses By Function unaudited ................................................86 City Council............................................................................................ 3 Financial Synopsis 2019 Expenses ..............................................35 Other Financial and Statistical Schedules ................................87 Message from the City Manager .................................................... 4 Responsibility for Financial Reporting .......................................37 Taxation and Assessments .............................................................91 City of Calgary Administration ....................................................... 5 Independent Auditor’s Report ......................................................38 Continuity of Long-Term Debt .....................................................93 Audit Committee ................................................................................. 6 Consolidated Statement of Financial Position ........................40 Demographic and Other Information........................................95 2019 in Review ..................................................................................... 7 Consolidated Statement of Operations and Making strategic investments in infrastructure .................. 7 Accumulated Surplus .......................................................................41 The City of Calgary, Alberta | ANNUAL REPORT Supporting business opportunities ......................................... 8 Consolidated Statement of Cash Flows .....................................42 FOR THE YEAR ENDED DECEMBER 31, 2019 Produced by the Chief Financial Officer’s Focusing on our financial sustainability ................................. 9 Consolidated Statement of Changes in Net Financial Assets .........................................................................43 Department of The City of Calgary, in cooperation Quality of Life in Calgary with all civic departments, offices and agencies. Notes to the Consolidated Financial Statements .................44 are satised with their agree Calgary is a great 86% quality of life 84% place to make a life agree we are on track to are proud to live in 88% becoming a better City 86% their neighbourhood The annual citizen satisfaction survey provides opinions to what The City is doing CITIZEN SATISFACTION perceive their neighbourhood CALGARY AT A GLANCE well and what needs improvement.83% as This safe year, 2,500 Calgarians, 18 and older, provided their thoughts. 1, 285,711 1,080 km QUALITY OF LIFE IN CALGARY CITY PROGRAMS AND SERVICES AREAS CALGARIANS THINK Population City pathways THE CITY SHOULD INVEST IN 83% 74% are satisfied with the overall level and quality of services 1.4% 287 rate their quality of life Population growth City-supported events as good 63% 95% 90% Affordable housing for are satisfied with are satisfied with low-income families 76% the quality of residential garbage 36 $457,046 agree we are on track to drinking water collection service Median age MLS average selling price becoming a better city 62% Social services for seniors 79% and youth 7.1% 2,685 agree Calgary is a great 93% Unemployment Single family housing starts are satisfied with 84% are satisfied place to make a life Calgary’s parks, 56% rate with roads and Calgary Transit including playgrounds and infrastructure. bus and CTrain service $5.2 billion 85% open spaces are proud to live in their 848 km² Value of building neighbourhood 54% City area permits issued 79% Calgary Police Service 82% are satisfied 79% perceive their are satisfied with with land use neighbourhood as safe Calgary Transit planning The City of Calgary 2019 Annual Report say the economic downturn has of Calgarians think it is a good describe the current economic impacted their household time for The City to be situation in Calgary as bad investing in new projects like roads, public transportation and local facilities MESSAGE FROM THE MAYOR As we flip our calendars to a new decade, Financial sustainability is critical, both as an organization, I think we’re at a great time for reflection and as a citizen looking to see the value of your tax dollars. in Calgary. Our city is still navigating an There are 15,000 individuals employed at The City of Calgary, and we all share the same motto – Working to Make Life economic recovery that has been more Better Every Day. In order to accomplish this at a fair rate, fragile than anyone expected. Even in these we’ve worked to find more than $650 million in savings and tumultuous times, though, The City of Calgary efficiencies in our budget since 2014. We took that even is working hard to deliver a more efficient, further by keeping our budget for 2020 at the same level as higher quality service to its citizens, while 2019. With Calgary adding almost 30,000 residents year-over- keeping property taxes low. year, that means The City of Calgary is doing more without adding additional costs to our people. Every action we’re taking at The City is to support As we work to make sure that Calgary is the home for the Calgary’s economic recovery. This means we’re focusing world’s best entrepreneurs solving the world’s biggest on supporting business opportunities, focusing on our problems, we have to invest in a city that is prepared for that financial sustainability, and making strategic investments in future. With more than 2 million visitors since it opened, the infrastructure. A city that is open for business, well run, and Central Library is one part of that plan. We’re continuing building a thoughtful, resilient future is exactly the type of with our investments in the BMO expansion, the Event place that Calgarians should expect. And it goes beyond just Centre, our plan for the Arts Commons Transformation and Calgary, as our city was once again named the best city to the Field House. The first three of those will be the central live in the entire Western Hemisphere. buildings behind our development plan for the Culture For businesses, we took a number of actions. We froze and Entertainment District, and that district will also be construction fees for the fifth straight year. We reduced served by the Green Line. At almost $5 billion, the Green business licenses and other fees by 10 per cent, saving Line represents the largest public works project in Calgary’s tell you even more. Calgary has always been known as a city of millions per year to the entrepreneurs that make this city history, providing a necessary and in-demand piece of our leadership, bold risk-takers, adventurous entrepreneurs, and proud vibrant. We launched our #BuyLocalYYC campaign, which rapid transportation network. Having just opened the MAX communities that take care of one another. We’re moving forward energized small businesses and reminded Calgarians about Yellow to join our Teal, Orange, and Purple lines, this will together and making sure that spirit has everything it needs to the great things that we have in our communities. And as ensure that every quadrant of Calgary will be served by rapid reach its full potential. we looked to grow our city’s economy and to reenergize the transit. This provides transportation choice for Calgarians, downtown, through the Opportunity Calgary Investment reduces congestion, and ensures our city will have a skeleton Fund, we recruited seven businesses that are going to be on which to build our future development. calling Calgary home, diversifying the economy, promoting There was so much more accomplished in 2019 than I could innovation, and ultimately, creating and growing jobs. ever include in a cover story, and it’s a story I’m excited to Naheed Nenshi Mayor The City of Calgary 2019 Annual Report 1 CORPORATE GOVERNANCE AND ACCOUNTABILITY The role of City Council is to govern The City In addition to sitting as a Council in Council meetings, CITY OF CALGARY COMMITTEES of Calgary, Calgary’s municipal corporation, City Council members participate in a variety of boards, In 2019, Council set priorities, established policies and made to ensure it provides the civic services commissions and committees. Their involvement provides recommendations through Standing Policy Committees a critical link between Calgary’s communities, agencies and Calgarians need. In carrying out its many (SPCs), and Standing Specialized Committees (SSCs). The the workings of the municipal government. SPCs are as follows: SPC on Community and Protective duties, City Council must anticipate emerging City Council is comprised of 14 Councillors and the Mayor. Services; SPC on Planning and Urban Development; SPC opportunities and plan for the community’s In Council meetings, each member has one vote. They on Transportation and Transit; and SPC on Utilities and long-term development and growth, along are elected by and accountable to the people of Calgary. Corporate Services. The SSCs are: the Priorities and Finance