annual report 2017 - port coquitlam · award the government finance oﬃ cers of the united states...

FOR THE FISCAL YEAR ENDED DECEMBER 31, 2017

2017annual report

T H E C O R P O R A T I O N O FT H E C I T Y O F

BRITISH COLUMBIA, CANADA

The City of Port Coquitlam would like to thank the photographers whose images brought life to the pages of our 2017 Annual Report.

5 Introductory Section6 Message from the Mayor7 Message from the Chief Administrative Offi cer8 City of Port Coquitlam Organizational Chart9 Port Coquitlam City Council10 City Snapshot11 Economic Snapshot12 2017 Highlights13 Giving Back14 Strategic Direction15 Letter of Transmittal

17 DEPARTMENT OVERVIEWS

18 Offi ce of the Chief Administrative Offi cer20 Corporate Support22 Development Services24 Engineering & Public Works26 Finance28 Fire & Emergency Services30 Human Resources32 Recreation34 RCMP

37 Financial Section38 Auditors’ Report to the Mayor and Council40 Consolidated Statement of Financial Position41 Consolidated Statement of Operations42 Consolidated Statement of Cash Flows43 Consolidated Statement of Change in Net Financial Assets44 Notes to the Consolidated Financial Statements

59 Statistical Section (unaudited)60 Average Home Municipal Taxes and Utilities61 Assessed Values for General Municipal Purposes61 Population Estimates62 Estimated Household Costs of City Services for an Average Single Family Residence63 Property Taxes Levied and Collected63 Taxes, Major Levies and Other Government Collections64 Revenues by Source64 Building Permits and Total Tax Collection65 Expense by Function65 Expense by Object66 Capital Expenditures and Net Debt Per Capita66 Capital Expenditures by Source67 Surplus, Net Financial Assets and Debt67 Accumulated Surplus67 Summary of Major Statutory Reserve Funds68 2017 Revenue68 2017 Expenses69 2017 Principal Corporate Taxpayers69 2017 Permissive Property Tax Exemptions

Table of Contents

A YEAR IN PICTURES

The City of Port Coquitlam broke ground in March 2017 on a vibrant community hub in the downtown. Existing recreation and library facilities are remaining open until they are replaced. New amenities will start opening as soon as 2019, and construction is scheduled to conclude in 2021. Info: www.portcoquitlam.ca/reccomplex.

COMMUNITY RECREATION COMPLEX

Produced with sugar cane waste, forest-free Sugar Sheet™ reduces deforestation and greenhouse gas. It looks, performs, recycles, and costs the same as traditional paper, with a low environmental impact.



FOR THE FISCAL YEAR ENDED DECEMBER 31, 2017

Prepared by the Communications Division in conjunction with the Finance Department

2017annual report

4 Annual Report 2017

Financial Reporting Award

CANADIAN AWARD FOR FINANCIAL REPORTING

The Government Finance Offi cers Association of the United States and Canada (GFOA) awarded a Canadian Award for Financial Reporting to the City of Port Coquitlam for its annual fi nancial report for the fi scal year ended December 31, 2016.

The Canadian Award for Financial Reporting program was established to encourage municipal governments throughout Canada to publish high quality fi nancial reports and to provide peer recognition and technical guidance for offi cials preparing these reports.

In order to be awarded a Canadian Award for Financial Reporting, a government unit must publish an easily readable and effi ciently organized annual fi nancial report, whose contents conform to program standards.

Such reports should go beyond the minimum requirements of generally accepted accounting principles and demonstrate an eff ort to clearly communicate the municipal government’s fi nancial picture, enhance an understanding of fi nancial reporting by municipal governments, and address user needs.

12thyear receiving the fi nancial reporting award

The Government Finance Offi cers of the United States and Canada is a non-profi t professional association serving more than 19,000 fi nance professionals throughout North America.

IntroductorySection

City of Port Coquitlam 5


The verb “building” may make you think about hammers and nails – as in, constructing something new – or it may make you think about developing something to make it better. Both of those concepts apply to the theme of our 2017 annual report, “Building Our Community.”

Port Coquitlam not only saw a record $219 million in building permit values in 2017, but we also undertook long-term planning activities intended to build an even more livable and prosperous community.

There were signs of construction throughout our city in 2017, including some large City-led projects, like Blakeburn Lagoons Park – the largest addition to our parks network in decades.

We also broke ground on our new Community Recreation Complex in March 2017 and now eagerly await the fi rst of the amenities to open in 2019. Set for completion in late 2021, this new community hub will play a central role in the ongoing enhancement of our downtown.

Last year we completed a year-long planning exercise that led to the report Recommendations for a Downtown Action Plan, which identifi ed ways we could further develop the area’s potential.

The building blocks are there. With its sidewalk cafés and tree-lined, pedestrian-friendly streets, our downtown both exudes an old-fashioned charm and has proven it can host thousands of people for events such as the PoCo Grand Prix and Downtown Car Show.

Our downtown, our community spirit and our connection with nature all come together to create a small-town charm and sense of community that makes Port Coquitlam unique.

As we continue to grow, some of the steps we’re taking to build that “brand” include:

• hosting new events and festivals, like last year’s Canada 150 celebration,

• planning livable neighbourhoods, including new housing options like carriage houses,

• growing our businesses, including supporting emerging industries and existing commercial areas, and

• making our community more walkable and cyclable, with pedestrian safety improvements, new cycling amenities and enhanced trails such as the Donald Street pathway.

All of these actions encourage people to get out into the community, meet other residents and use local services – ultimately, helping to preserve the special nature of our community as we build for the future.

On behalf of the City of Port Coquitlam and City Council, I’m pleased to share our 2017 accomplishments in this annual report.

Greg MooreMayor

Message from the Mayor


City Council

Message from the Chief Administrative Offi cer

If you want to build a solid, durable home, you start with a strong frame and foundation. The same is true in the world of local government. To be truly eff ective in meeting your commitments to the community, you must have a strong, resilient organization.

As such, the theme of our 2017 Annual Report – “Building Our Community” – is also relevant to what happens behind the scenes at the City. The work we’re doing to strengthen our organization is much like a renovation – it adds value, but it isn’t always immediately evident from the outside.

In recent years, this work has included in-depth reviews of some of our services. From 2014 to 2017 we undertook Continuous Improvement Assessments (CIAs for short) in six specifi c areas to ensure we are delivering those services both effi ciently and eff ectively.

These six CIAs looked at our fl eet operations, purchasing section, services shared by our Parks and Operations (now Public Works) divisions, customer service in inspections and compliance roles, recreation programming, and business licensing.

Each CIA took a deep look at the service itself, its value, who was providing it, and how we delivered it. Importantly, each CIA committee included a representative from the private sector to provide a diff erent perspective.

The recommendations that come out of the CIAs were large and small. Sometimes only a minor administrative change was needed. At times we completely re-thought what we’d been doing – like when we moved our parks maintenance to the Public Works division in 2015, reducing signifi cant overlap between the two areas. And sometimes the fi ndings simply confi rmed we were already doing things as eff ectively as we could.

When we reviewed our CIA program at the end of 2017, we had saved approximately $155,000. There were also many improvements you can’t quantify with a dollar fi gure, such as the goodwill created by better customer service, or a staff person’s feeling of satisfaction from a job well done.

In the end, these CIAs – or focused renovations – improved some specifi c services while also inspiring a culture of improvement, and ultimately strengthened the entire organization.

John Leeburn, MBAChief Administrative Offi cer


Organizational Chart

CITY COUNCIL

CITIZENS OF PORT COQUITLAM(residents, property owners, businesses)

Municipal Auditors KPMG LLP

BankersToronto Dominion Bank

CORPORATE SUPPORT

Robin WishartDirector

Divisions: Bylaw Services, Communications & Admin Services, Community Policing, Corporate Offi ce, Information Services

OFFICE OF THE CHIEF ADMINISTRATIVE OFFICER

John Leeburn, BCOM, MBAChief Administrative Offi cer

FIRE & EMERGENCY SERVICES

Nick DelmonicoFire Chief/City Emergency CoordinatorDivisions: Administration; Emergency Preparedness, Fire Suppression, Training, Protective Services & Public Education

RCMP

Sean MaloneySuperintendent, Offi cer-in-Charge

Contracted service

ENGINEERING & PUBLIC WORKS

Kristen Dixon, P.Eng, MBADirector

Divisions: Administration; Capital Projects, Infrastructure Planning, Public Works (incl. water, sewer, drainage, solid waste utilities)

HUMAN RESOURCES

Steve Traviss, CHRPDirector

Functions: Benefi ts & Compensation, Occupational Health & Safety, Labour Relations; Recruitment, Training & Development

FINANCE

Karen Grommada, CPA, CMADirector

Divisions: Common Services, Finance Services (purchasing, accounting, fi nancial planning, payroll, revenue services)

DEVELOPMENT SERVICES

Laura Lee Richard, MCIP Director

Divisions: Building, Planning, Development Engineering

RECREATION

Lori Bowie, Bsc, MADirector

Divisions: Recreation Services, Community Services, Facility Services


City Council

Elected every four years by the citizens of Port Coquitlam, City Council is a legislative body that provides leadership to the City’s government.

Port Coquitlam City Council is committed to ensuring the priorities of local citizens guide its policies and decisions on civic matters such as land use and budgets for operations and capital expenditures.

City Council is made up of the Mayor and six Councillors, all of whom were elected for a four-year term in 2014. The Mayor chairs the Council meetings.

Issues requiring a Council decision generally appear fi rst before one of the standing committees of Council. In 2017, these were the Community Safety Committee, Healthy Community Committee, Finance and Intergovernmental Committee, Smart Growth Committee, and Transportation Solutions & Public Works Committee.

These committee meetings, along with Council’s two regular meetings each month, are open to the public. Meeting agendas are available at City Hall or on the City website (www.portcoquitlam.ca/council). Live and archived broadcasts of Council meetings may also be viewed through the same web address.

City Council

Port Coquitlam City Council 2014-2018 at the March 2017 groundbreaking for the Community Recreation Complex: (left to right) Cllr. Glenn Pollock, Cllr. Mike Forrest, Cllr. Darrell Penner, Mayor Greg Moore, Cllr. Brad West, Cllr. Dean Washington and Cllr. Laura Dupont.


City Snapshot

VISION

MISSION

Port Coquitlam is a happy, vibrant, safe community with healthy, engaged residents and thriving businesses, supported by sustainable resources and services.

We strive to do it right by researching, planning, building and executing well-balanced solutions.

7 Council members provide leadership and set policies

and budgets

Structure

Chief Administrative Offi cerCorporate Support

Development ServicesEngineering & Public Works

FinanceFire & Emergency Services

Human ResourcesRecreation

RCMP

2017 DEMOGRAPHICS GOVERNANCE

City Council

29.17 km2

total land area

Located in the heart of Metro Vancouver, British Columbia

Incorporated March 7, 1913

Hometown of Terry Fox

Traboulay PoCo Trail

Quaint downtown & small-town

charm

Engaging citizens with technology

PoCo Pride

Family-friendly neighbourhoods

WHAT PORT COQUITLAM IS KNOWN FOR

58,612 people

3,734 business licences

271 hectares of

parks & trails

21,750 private dwellings


Economic Snapshot

Source: Bylaw

Services

Total $ value – new constructionTotal $ value – improvements

2013 2014 2015 2016 2017

* Ages 15 and overSource: Statistics Canada, 2016

• 93% are Canadian citizens• 32% were born outside of Canada• 66% say English is mother tongue

Business licences issued

0 1000 2000 3000 4000

Top sectors based on 2017 licences

Out-of-town Contractor (861)

Manufacturing (249)

Professional Person (220)

Retail (163)

• Average no. of persons/family: 2.7• 77% of homes are owned

• 88% at same address 1 year ago• 63% at same address 5 years ago

• 55% have some post-secondary education*

• Median household income: $84,096

• 66% are employed*

NEW CONSTRUCTION 2017: $198.1 MILLION

IMPROVEMENTS 2017: $20.3 MILLION

Home-based (855)

General (705)

3,1783,2613,4383,5813,734

$220 million

$180 million

$140 million

$100 million

$60 million

$40 million

$0

CONSTRUCTION PERMIT VALUE

RECENT STATISTICS

BUSINESS STATISTICS

2013

2014

2015

2016

2017

Accessory($853,300)

Single/two family($12.2 mill)

Structure ($39,000)

Multi-family($33.2 mill)Commercial($300,000)

Industrial($36.4 mill)

Institutional($115.1 mill)

Institutional($5.3 mill)

Single/two family($2.1 mill)

Multi-family($1.1 mill)

Commercial($6.4 mill)Industrial

($5.4 mill)

Population in 2016 58,612 4,648,055Population in 2011 55,958 4,400,0572011 to 2016 population change 4.7% 5.6%

Total private dwellings 2016 22,586 2,063,417Total private dwellings 2011 21,533 1,945,365

Population density per sq. km 2016 2,009.4 5.0Population density per sq. km 2011 1,931.3 4.8

Land area (square km) 29.17 922,509.29

Source: Statistics Canada - 2011 and 2016 Census Note: Census population estimates are lower than municipal and regional estimates.

Port Coquitlam B.C.

* Percentage distribution

based on published

totals, both sexes.

Source: Statistics Canada

- 2016 Census.

All 28,960 29,650 100%* 100%*0-14 yrs 5,095 4,655 16% 15%15-24 yrs 3,930 3,545 13% 11%25-44 yrs 7,665 8,040 27% 26%45-64 yrs 8,850 9,350 31% 30%65+ yrs 3,420 4,060 13% 18%

Male FemaleAges PoCo % B.C. %

POPULATION & DWELLINGS

AGE DISTRIBUTION


COMMUNITY REC COMPLEXBegan construction on this exciting new community hub in the downtown, including:• Construction fencing and groundbreaking• Demolition of part of the Wilson Centre building• Soil preparation work, including pile driving

YEAR 2 OF POCO GRAND PRIX Attracted 7,500 people to the downtown with a day-long outdoor festival featuring pro cycling, entertainment and family fun.

UBCM AWARD: DISASTER PLANNINGWon a Community Excellence Award from the Union of BC Municipalities for work helping the community and local businesses plan ahead to recover after a major disaster, including holding workshops and providing resources.

TRANSPORTATION IMPROVEMENTS• Upgraded a 1.1-km stretch of Pitt

River Road and McLean Avenue • Improved active transportation

such as bike lanes and sidewalks

MURAL MOSAICWorked with the community to paint 600 tiles and create a permanent mural refl ecting community themes, installed at Leigh Square.

SUN VALLEY SPRAY PARK Expanded the spray zone, added water fi ltering and made other upgrades with the support of federal infrastructure funding.

CANADA 150Celebrated with a day-long arts, music and nature festival in Leigh Square and Lions Park that attracted 9,000 people.

SUPPORTING THE DOWNTOWNCompleted research and recommendations identifying opportunities to further develop the potential of the downtown.

RECRUITMENT CAMPAIGNKicked off the PoCo Works! campaign, focusing on what makes Port Coquitlam unique as a local government employer.

NEW WEBSITEUpdated the City website with a new modern look, better viewing on mobile devices, improved navigation and security, and other improvements.

2017 Highlights


City Council

Giving Back

Many volunteers and organizations work hard to make our community a better place. Because of their eff orts, Port Coquitlam is a safer, healthier and more complete community, with an abundance of PoCo Pride: that special combination of community spirit and pride that is unique to Port Coquitlam.

The City of Port Coquitlam provides opportunities for citizens to volunteer in all aspects of civic life,

from assisting with recreation programs to serving as citizen advisors to City Council. Our website, www.portcoquitlam.ca/volunteer, features volunteer opportunities and online registration.

Each April during National Volunteer Week, we celebrate all volunteers in our city with a Volunteer Recognition Awards & Tribute and other events.

We’re proud of the volunteer work undertaken by City staff and Council members. Not a month goes by without some sort of offi ce fundraiser, and many also volunteer in their spare time. Key 2017 activities:

• Firefi ghters raised $39,751 and volunteered more than 1,429 hours to support a variety of causes: · $14,302 for prostate cancer research and

men’s health initiatives through Movember. · $5,983 for the BC Professional Fire Fighters

Burn Fund through Christmas tree chipping and the Canada Day salmon barbecue.

· $17,166 for Muscular Dystrophy Canada through a boot drive.

· $2,300 for the BC Burn Unit through a slow-pitch tournament beer garden and cook shack.

· Also volunteered for events supporting the Terry Fox Foundation, Fire Fighters Burn Fund, BC Children’s Hospital, Camp Ignite and the City.

• The staff Week of Giving campaign raised $5,610.58 for the United Way and $9,361.42 for local charities through donations, pledges and a variety of activities.

• The staff Boots on the Ground team volunteered at events such as the PoCo Grand Prix and Terry Fox Hometown Run.

• Staff supported a coworker whose wife was seriously ill by donating 41 vacation days and raising more than $13,000 at a fundraiser.

Community Volunteers

City Volunteers

The City staff Boots on the Ground team volunteered at a water station at the 2017 Terry Fox Hometown Run alongside community volunteers.


Strategic Direction

Vision 2020 Strategic Outcomes

Sustainable Future – Addresses fi nancial health, environmental health, social health and sustainable services.

Sense of Community – Addresses community spirit, inclusiveness and diversity, and community health.

Economic Strength – Addresses business strength, employment, access and transportation, and agricultural land.

Community Well-being – Addresses community safety, parks and natural areas, waste management and utility services.

Strategic Service Delivery – Addressesstaff productivity and eff ectiveness, transparency and public confi dence, and a healthy work environment.

Council priorities

Community Livability – Projects including updating the Offi cial Community Plan and Environmental Strategic Plan, implementing the Cultural Plan and Master Transportation Plan, supporting public safety, and strengthening relations with Kwikwetlem First Nation.

Infrastructure – Maximize the life of infrastructure assets (e.g. roads and buildings) and save for their replacement.

Community Recreation Complex – Plan and construct a new Community Recreation Complex on 15 acres of City land in the downtown that includes the Port Coquitlam Recreation Complex and former works yard.

The City’s policy, operations and fi nancial decisions are guided by the Corporate Strategic Plan – entitled Vision 2020 – along with City Council’s current priorities.

Adopted in 2011, Vision 2020 outlines the community’s vision for the future and was built on a foundation of core municipal principles, best practices and public consultation.

Council also sets priorities each year that guide the budget and delivery of City services. Since 2013, Council has directed staff to focus on three priorities that grew from Vision 2020.

Targeting a few priorities at a time enables the City to meet its goals more eff ectively.

Go to www.portcoquitlam.ca/vision2020 for more information.

The work of the City’s departments (described in Department Overviews, starting on page 17) is aligned with the following:

VISION: Port Coquitlam is a happy, vibrant, safe community of healthy engaged residents

and thriving businesses supported by sustainable resources and services.

MISSION: We strive to do it right by researching, planning, building and

executing well-balanced solutions.


www.portcoquitlam.ca

2580 Shaughnessy Street, Port Coquitlam BC, Canada, V3C 2A8

LETTER OF TRANSMITTAL

June 1, 2018

Mayor and Council City of Port Coquitlam

I am pleased to present the City’s Financial Statements and Annual Report for the fiscal year ending December 31, 2017. Pursuant to Section 98 of the Community Charter, this document shares the City’s accomplishments, activities and financial results for the past year and goals for the upcoming year.

In keeping with the 2017 Annual Report theme “Building Our Community,” one of last year’s key highlights was the long-awaited groundbreaking and beginning of construction of the Community Recreation Complex in the spring. To be completed in 2021, this community hub will bring new and enhanced amenities to our downtown. The project’s balanced funding plan includes use of reserves, land sales revenue, federal contributions, a parcel tax from 2017 to 2020, phased-in property tax increases, and some borrowing.

The City also issued building permits for projects with a record value of $219 million in 2017 (compared to $155 million in 2016), in part due to the Recreation Complex project and growth in the Dominion Triangle area. From a financial standpoint, the introduction of a two-year operating budget cycle, aligned with a two-year capital budget, was a significant change in 2017. The forward-looking approach ensures we plan for services and infrastructure in a sustainable way, and allows us to take advantage of market timing for capital project tendering.

We continue to see the benefits of the new cloud-based Agresso Financial System, which has created an efficient electronic workflow and provides a rich source of data to facilitate strategic decision-making by staff and Council. Our organization’s focus on continuous improvement was also maintained in 2017.

In terms of the 2017 Annual Report, the preparation and presentation of the Financial Statements (Statements) and related information is the responsibility of the City. The Statements were prepared in accordance with Canadian Public Sector Accounting Standards.

City Council ensures management fulfills its responsibilities for financial reporting, budgeting and internal controls by approving bylaws and policies, reviewing variance reports and financial statements, and having discussions with the City’s auditors in a closed meeting of the Finance and Budget Committee.

The audit firm of KPMG LLP, appointed by Council, has expressed its opinion that the Statements fairly present the financial position of the City as at December 31, 2017, and the results of 2017 operations are in accordance with Canadian Public Sector Accounting Standards.

The City maintains a system of internal and administrative controls designed to provide reliable and accurate financial information and to ensure assets are appropriately accounted for and adequately safeguarded. Expenditures and revenues are analyzed regularly by departments and finance staff, who update Council on a quarterly basis.

MUNICIPAL OVERVIEW

The City provides a complete range of municipal services to residents and businesses, including police, fire, water, sewer, transportation, planning, recreation and other programs benefitting the community. Services cost-shared with other cities for cost-effective service delivery include emergency communications, fire dispatch and policing.

The City relies on the Greater Vancouver Water District for our water supply, Greater Vancouver Sewerage and Drainage District for sewage disposal, and Metro Vancouver for co-ordination of common services with other cities.

Letter of Transmittal



Overall, the City’s work and finances in 2017 were guided by the Vision 2020 Corporate Strategic Plan and Council's current priorities: projects that improve community livability; maximizing the life of infrastructure assets and saving for their replacement; and planning and constructing the Community Recreation Complex.

FINANCIAL OVERVIEW

The City takes a long-term approach to its finances for a sustainable future, including setting aside sufficient funds to replace assets consumed in the year and saving for asset replacement. Steps taken to address future infrastructure funding challenges have included collecting funds in long-term reserves, and establishing a Finance & Budget Committee focused on policy direction to promote fiscal responsibility.

The difference between 2017 revenues and 2017 expenses results in a 2017 annual surplus amount of $37 million (2016 - $16.1 million) and increases the City’s accumulated surplus from the 2016 balance of $720.2 million up to $757.2 million. It is, however, important to note that not all of the City’s accumulated surplus relates to funds that can be spent on future projects. Of the $757.2 million ending balance in 2017, only the $132.7 million related to restricted and unrestricted reserves is available for use. The remaining $624.5 million relates to the City’s equity in tangible capital assets and other non-financial assets. Notes 13 through 15 of the consolidated financial statements provide additional breakdown of the various components of accumulated surplus.

Contributing to the surplus was an increase in reserve balances due to changes in construction timing for the Community Recreation Complex, as well as decisions to delay a number of 2017 capital road projects to 2018 for optimal market timing. For this reason, the capital project focus in 2017 was primarily on essential maintenance, committed projects and multi-year initiatives.

Annual operations remained constant. Fire and emergency services, police protection, water supply, sewer discharge, development, recreation, parks, culture and other primary and support services were delivered to the residents and businesses consistent with prior years, with minor adjustments for changes in demand and market conditions.

Interest rates remain low and continue to affect City investment decisions and returns. As we look to the future, the challenge ahead is to continue to save for future infrastructure replacement, while keeping taxes sustainable and funding a new Community Recreation Complex and other emerging community needs.

CONCLUSION

City services provide the community with a quality of life that includes safety and protection, essential services, a sense of community and economic sustainability. A long-term approach to the City’s finances will ensure these services will be available in the years to come. In addition, following Public Sector Accounting Board recommendations to quantify the long-term financial needs of the City, and taking steps to fund these needs in the City’s reserves, has been an important step for the City in its goal to reach sustainability of our finances.

Balancing affordability for the community today and tomorrow will continue to be our financial challenge. The annual financial statements will monitor our progress.

Respectfully,

Karen Grommada, CPA, CMA Director of Finance

Letter of Transmittal


DepartmentOverviews


Key Responsibilities• Direct and coordinate the activities of all

departments. • Assist Council to establish the City’s vision, plans

and priorities. • Oversee the development of revenue-

generation initiatives and other strategic projects.

• Oversee the implementation of the City’s vision, plans and priorities by: · ensuring eff ective policies are in place and

adhered to, and · providing leadership that enables an

engaged and productive municipal workforce.

2

New revenue-generating commercial contracts

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

Improvement Assessment savings identified

Offi ce of the Chief Administrative Offi cer

$155,000


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

STRATEGIC OUTCOME OR COUNCIL PRIORITY

PERFORMANCE MEASURES 2017Community Recreation Complex

• Oversaw launch and fi rst year of construction.

Strategic Service Delivery

• Reviewed and made recommendations to enhance the City’s Continuous Improvement Assessment program, which conducts in-depth reviews of City services.

• Participated in a union/management Training Adjudication Committee to begin reviewing each job description and associated training manual requirements.

• Worked with Human Resources to conduct a City-wide employee opinion survey.

• Worked with Human Resources to conclude collective bargaining with CUPE staff .

• Worked with Human Resources to implement a performance planning program for unionized supervisors.

Sustainable Future • Completed revenue-generating commercial contracts for transit shelters and digital signage.

• Negotiated a contract with Canadian Pacifi c Railway to preserve the City’s rights related to the Coast Meridian Overpass in the event of future land-use changes.

• Oversaw implementation of amended processes and increased analysis and oversight of fi nancial transactions to achieve increased fi nancial oversight.


GOALS 2018Community Recreation Complex

• Continue to oversee construction.

Sustainable Future • Support the implementation of a land strategy for City-owned properties.• Explore and act on ways to strengthen relationships with the Kwikwetlem First

Nation.


More Stats & Facts• Social media followers (Facebook, Twitter and

Instagram): 18,761• E-Update subscribers: 1,947• Freedom of Information requests: 71• Bylaws processed: 48• IS customer support requests: 1,977• Desktop computers: 250• Mobile devices: 175• Dog licences issued: 4,756• Community Policing volunteer hours: 6,260• Community Police Offi ce community

interactions: 3,304

3,734

Business licences issued

Key Responsibilities• Communications, legislative and administrative

functions• Bylaw enforcement (including community

policing) • Technology and online services• Council meetings, City records and elections• City land holdings

Divisions• Bylaw Services• Communications & Administrative Services• Community Policing• Corporate Offi ce• Information Services

Website visits

655,853Corporate Support brings together services and functions that support the organization as a whole.

Corporate Support




PERFORMANCE MEASURES 2017Community Well-being • Updated bylaw to address aggressive dogs.

• Upgraded Emergency Operations Centre hardware.• Enforced proper waste sorting and securing waste to keep bears away.• Expanded Community Policing volunteer program, including more bicycle and

foot patrols at events.• Conducted graffi ti audits and prevention activities.

Sense of Community & Community Livability

• Worked with Recreation to begin development of branding and a marketing plan for recreation, arts and cultural services.


• Launched a secure new City website that better integrates with mobile devices and online services, and uses cost-eff ective open source software.

• Upgraded half of the City’s Microsoft Server operating systems.• Completed the move to fully electronic meeting agendas. • Implemented mobile ticketing for bylaw enforcement.• Completed a year-long Tempest system upgrade for property, tax, utilities,

point-of-sale and licensing, as well as a complete user interface overhaul.• Participated in and began to implement recommendations from the

Continuous Improvement Assessment of business licensing.

Community Recreation Complex

• Engaged public in the project with streaming webcam, video updates and other website and social media outreach.


GOALS 2018Strategic Service Delivery

• Develop and roll out an app to provide access to a variety of City services.• Roll out new committee agenda software.• Plan and conduct a municipal election for Council and the School Board.

Community Well-being • Develop new regulations for homeless camps in parks.• Test and provide training related to the City’s Crisis Communications Plan.• Implement a smoking bylaw banning smoking of any type along trails, in parks

and playgrounds, and in other public areas.


More Stats & Facts• Planning applications processed: 73• Benchmark development permit application

review time: six months• Value of development engineering works

processed: $6.1 million• Building permits for new construction: 338

246

New dwelling units approved

Building permit construction value

Key Responsibilities• Institute sustainable and integrated policies and

regulations for land use and development.• Provide guidance on land use and development

matters.• Ensure new developments and buildings meet

applicable policies, codes and standards.• Promote economic development.• Liaise with the Kwikwetlem First Nation, Port

Coquitlam Business Improvement Association and Tri-Cities Chamber of Commerce.

Divisions• Building (including Plumbing)• Development Engineering • Planning

$219 million*

Development Services strategically guides the growth and development of the community.

Development Services

* Includes $102 million for the Community Recreation Complex.




GOALS 2018Sustainable Future & Community Livability

• Implement new policies and regulations to promote, plant and protect trees.• Update the Environmental Strategic Plan.

Sustainable Future • Oversee an assessment of underground wiring in the downtown.• Revise the Building and Plumbing Bylaw and update job descriptions for

building and plumbing offi cials, in line with Building Act changes.• Adopt new policies and regulations to expand housing options, including

opportunities for smaller lots and more duplexes in single-family areas, as well as an aff ordable housing strategy.

Economic Strength • Implement actions intended to promote a vibrant downtown.• Develop a Northside Commercial Plan.


PERFORMANCE MEASURES 2017Sustainable Future & Community Livability

• Implemented new requirements for electric vehicle infrastructure.• Consulted with the public on tree policies and regulations through a Let’s Talk

Trees campaign.

Sustainable Future • Adopted a zoning bylaw amendment to allow coach houses and issued the City’s fi rst development permit for this new housing option.

• Processed building permits with a record construction value of $218.6 million, largely due to the $102-million Community Recreation Complex, substantial industrial development and replacement of Minnekhada Middle School.

• Completed the business licensing Continuous Improvement Assessment.

Economic Strength • Worked with a Downtown Advisory Group and consultant in developing the report Recommendations for a Downtown Action Plan.

• Improved guidelines and educational materials for new builders and developers.

Community Recreation Complex

• Obtained approval for an environmental conservation development permit for the complex.

• Oversaw land-use planning and development processes related to the private mixed-use portion of the project.


More Stats & Facts• Public requests and inquiries: 5,886• Waste collection customers:

· Single-family units: 14,632 · Multi-family units: 3,935 · Institution or business: 386

• Percentage of waste diverted from landfi ll: 66• Water supplied: 9.3 million cubic metres• PoCo Waste-Line app registrants: 6,350

PoCoMAP visits (public)

21,886

Key Responsibilities• Plan and manage City infrastructure projects.• Plan and operate the City transportation

network.• Maintain the PoCoMAP geographic information

system.• Collect garbage, recycling and green waste.• Provide and maintain City parks, trails and open

spaces. • Manage the City fl eet.• Provide water, sewer and drainage services. • Provide engineering customer services.

Divisions• Administration• Capital Projects • Infrastructure Planning• Public Works (including streets, parks, fl eet, and

solid waste, sewer, water and drainage utilities)

Total waste collection customers

18,953

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

Engineering & Public Works




• Began the four-year construction of Community Recreation Complex and related improvements in downtown Port Coquitlam.

Community Well-being • Began construction of Blakeburn Lagoons Park, to transform two former waste settling ponds into a passive park and functioning wildlife habitat.

• Created a new traffi c calming policy and procedure.• Sold discounted rain barrels to the public to promote water conservation.• Upgraded the Sun Valley Park spray zone with federal infrastructure funding.


• Changed waste collection zones to improve effi ciency.• Hosted more than 1,000 people at the annual Public Works Open House.• Relaunched the Ambassador program to educate the community on proper

waste sorting, securing waste from bears and water-use restrictions.• Performed an effi ciency review across all Parks sections.

Economic Strength • Upgraded a 1.1 km stretch of Pitt River Road and McLean Avenue, an important local transportation link, to arterial standards.

Sustainable Future • Signed agreements that will bring 29 new and 20 upgraded bus shelters and additional transit benches to the City in 2018.

Sense of Community • Completed a variety of pedestrian and cycling enhancements, including the addition of 25 new bike racks and painting of bike lanes to improve safety.


GOALS 2018Strategic Service Delivery

• Upgrade Centennial outdoor pool for competition and community use.• Begin a four-year program to update all streetlights to LED.• Assess the current state of asset management and develop a strategy and policy.• Develop a 10-year capital plan.

Community Well-being • Complete construction and open Blakeburn Lagoons Park, a new natural oasis and the largest addition to the City’s parks network in decades.

Economic Strength • Complete extensive upgrades of neighbourhood roads, sidewalks and services.

Sustainable Future • Work with Coquitlam on an inter-municipal road agreement.



More Stats & Facts• Billing and collection value: $84 million• Tax customers: 20,784• MyPortCoquitlam registrants: 13,546

· Business Licences: 130 · Development Services: 156 · Dog Licences: 279 · Property Taxes: 1,751 · Utilities (Water and Sewer): 1,759 · Electronic Home Owner Grants: 9,471

• MyPortCoquitlam change from 2016: +16%

Key Responsibilities• Provides fi nancial planning, accounting, payroll,

purchasing and revenue collection services.• Administrates operating funds.• Risk management (insurance and claims

administration).

Divisions• Common Services • Finance Services

· Accounting · Financial Planning & Systems · Payroll · Purchasing · Revenue Services

12

Years winning fi nancial reporting award*

$92.8 million2017 operating budgetFinance provides fi nancial services to citizens,

City departments and City Council.

Finance

* From the Government Finance Offi cers Association





• Received a certifi cate of approval for the Community Recreation Complex Loan Authorization Bylaw from the province.

Sustainable Future • Implemented the City’s fi rst two-year budget.• Received a Canadian Award for Financial Reporting for the 2016 Annual Report.• Continued to develop and support enhanced fi nancial functions through

implementation of the new Agresso cloud-based fi nancial system. • Took part in a year-long Tempest system upgrade for property, tax, utilities,

point-of-sale and licensing.• Implemented the City’s new Living Wage policy in conjunction with Human

Resources. • Completed a review of the Stores operations.• Conducted signifi cant goods and/or services procurement solicitations,

including a Request for Proposals and contract negotiations for organics collection and a new Quint/Ladder fi re truck.

Sustainable Future & Strategic Service Delivery

• Implemented amended processes and increased analysis and oversight of fi nancial transactions to achieve increased fi nancial oversight.


GOALS 2018Infrastructure & Sustainable Future

• Work with other departments on the development of a City-wide asset management plan and 10-year capital plan.

Sustainable Future • Update the City Purchasing Policy and complete the development of purchasing tools for City departments.

• Work with Information Services to implement the timesheets feature for the Agresso cloud-based fi nancial system.

• Meet requirements to receive fi nancial reporting award from the Government Finance Offi cers Association.


More Stats & Facts• Firefi ghters per capita: 1:821• Total calls for service: 4,066

· Fire calls: 185 (2%) · Hazardous materials calls: 51 (1%) · Medical calls: 2,044 (50%) · Motor vehicle accidents: 317 (8%) · Public service/assist: 223 (5%) · Miscellaneous (34%)

• Fire bylaw inspections: 2,516• Emergency preparedness course attendees: 970• Emergency preparedness volunteer hours: 2,466

Total fi refi ghters

70

Key Responsibilities• Respond to fi re, medical and other

emergencies. • Conduct fi re bylaw inspections and fi re

investigations. • Provide public education programs.• Develop and implement the City’s Operational

Emergency Response Plan.• Deliver public emergency preparedness

education and awareness.

Divisions• Administration• Emergency Preparedness • Fire Suppression • Training • Protective Services & Public Education

Total calls for service

4,066Fire & Emergency Services provides for the preservation of life, property and the environment in Port Coquitlam.

Fire & Emergency Services




PERFORMANCE MEASURES 2017Community Well-being • Won the Community Excellence Award from the Union of BC Municipalities for

disaster recovery and business continuity outreach and resources.• Added fi ve new fi refi ghters to keep up with increasing call volume and training

requirements.• Conducted Requests for Proposals and ordered a new medic vehicle and

replacement Quint/Ladder truck.

Community Well-being & Sustainable Future

• Implemented a fi refi ghter health and wellness initiative, including testing and training.

• Created an Acting Public Education Offi cer position to expand the department’s public education and community safety capacity.

• Started the process for capital replacement of the department’s stock of self-contained breathing apparatus (SCBA).

• Developed a business case for moving fi re radio communications to the regional E-Comm system, for increased effi ciency and enhanced safety for fi refi ghters and the public.

• Developed an integration plan to achieve increased Emergency Operations Centre staffi ng.

• Restructured the Response and Resource Allocation Model for implementation in 2019.


GOALS 2018Community Well-being • Develop a community risk-reduction program for residential properties, with a

focus on high-risk clients and properties.• Develop a business continuity plan to assist local business in the event of an

emergency.

Community Well-being & Sustainable Future

• Move fi re radio communications to the regional E-Comm system.• Review the current emergency communication system and evaluate alignment

strategies to address multi-jurisdictional compatibility and responder safety.• Complete a detailed review of the current bylaw inspection model to create

effi ciencies and align with the new Fire Safety Act.


More Stats & Facts• Employees: 291 full-time, 77 part-time,

217 casual • Average employee age:

· Casuals: 30 years · Part-time: 34 years · Full-time: 45 years · Fire suppression: 37 years · Fire non-suppression: 26 years · Exempt (non-union): 48 years

• Average length of service: 8 years• External hires: 87• Internal appointments: 104

Total City employees

585

4,200+

Job applicants processed

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

Key Responsibilities• Champion City-wide initiatives that build on a

positive and inclusive organizational culture, which places employees in the best position to provide excellent support and service to citizens and the business community.

• Recruit City staff and ensure succession planning.

• Manage the City’s labour relations.• Coordinate the City’s occupational health and

safety program.• Plan and implement staff training and

development.• Administer benefi ts, attendance and disability

management programs.

Human Resources




PERFORMANCE MEASURES 2017Strategic Service Delivery

• Implemented a PoCo Works! strategy to attract new talent to the City, focusing on what makes Port Coquitlam unique as a local government employer.

• Completed a review of the Attendance Management Program and industry best practices for reducing absenteeism.

• Conducted a City-wide employee opinion survey.• Implemented performance planning for CUPE supervisors.• Implemented a supervisory skills program with Public Works.• Implemented a successful inclusive employment opportunity pilot.• Concluded collective bargaining with CUPE staff .• Captured photos of all employees and established a process for new employee

identifi cation.


GOALS 2018Sustainable Future • Work with other departments to implement amended processes and increased

analysis and oversight of fi nancial transactions to achieve increased fi nancial oversight.


• Implement Attendance Management Program recommendations for reducing absenteeism.

• Analyze and report out on results of 2017 employee opinion survey. • Support the development of a staffi ng plan for the new Community Recreation

Complex.


More Stats & Facts• Courses off ered: 5,934• Program registrations: 26,995• Program hours provided: 31,943• Drop-in program participants: 133,938• Active volunteers: 468• Recreation facility memberships sold: 8,644• Wilson Centre memberships sold: 1,130• Library items borrowed**: 293,644• New library cards issued***: 2,146• Active library cards***: 19,744

Major event attendance*

135,000

57%

Online program registration

Key Responsibilities• Provide recreation, sport, fi tness, social, arts and

culture programs, services and special events.• Coordinate volunteer opportunities and training

for youth, adults and seniors.• Manage reservations for City parks and facilities.• Support community organizations aligned with

department services.• Administer community grant programs.• Manage building maintenance and lifecycle

management for 26 City facilities.• Act as the City’s Liaison for Terry Fox Library.

Divisions• Recreation Services• Cultural Development & Community Services• Facility Services

The Recreation Department provides inclusive recreation and culture experiences to support a healthy engaged community.

Recreation

*Reflects 13 major City led and supported festivals/events

**Does not include e-books

***Terry Fox identifi ed as home library





• Maintained facility operations during construction and promoted programs through advertising, a well-attended community barbecue, and other means.

Community Livability & Sense of Community

• Increased activity in Leigh Square and established a Cultural Roundtable as part of the implementation of the new Cultural Plan.

Economic Strength & Sense of Community

• Held the second annual PoCo Grand Prix, attracting 7,500 attendees (150% increase from 2016) and broadening participation by local businesses.

Sense of Community • Expanded the Pianos in the Street program from one to four pianos.

Sustainable Future • Received $123,500 in provincial and federal grants for Canada 150 events and projects, and $60,000 in federal funding for student summer jobs.

• Implemented a new facility staff structure, combining technical and recreational maintenance.

• Completed a review of aquatic service levels and a Continuous improvement Assessment of registered recreation programs.

• Developed new recreation facility emergency procedures and trained staff .• Implemented in-house janitorial services for greater effi ciency.• Compiled a fi ve-year facility lifecycle plan for the City’s Asset Management Plan.


GOALS 2018Community Recreation Complex

• Continue to ensure facility operations are maintained, reduce public impact and engage stakeholders; transfer services upon completion of phase one.

Community Livability & Sense of Community

• Transition the Festival Work Group into a Festival Committee.• Complete a Recreation Marketing Plan, including a new department logo.• Continue to grow and develop the Cultural Roundtable.

Sense of Community • Plan a Terry Fox exhibit for the new Community Recreation Complex in consultation with the Fox family and project developer.

• Explore locations and partnership opportunities for a new community garden.

Sustainable Future • Implement and provide staff training for a new online facility booking module.• Review and implement recommendations for expanding front counter service.


Total calls for service

41,083

Total police offi cers

236

Key Responsibilities• Reduce and prevent crime and protect

citizens and property through effi cient and eff ective response-to-call, enforcement and investigations as well as strategic outreach and education initiatives.

• Identify and address emerging public safety issues.• Work in partnership with the City and citizens to

ensure Port Coquitlam is a healthy, vibrant and safe community.

Divisions• RCMP• Public Safety Building

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

RCMP

Crime Types 2016 2017 ChangePerson Crimes1 901 856 -5%Property Crimes2 6,023 5,218 -13%Other (Breach of Probation) 510 483 -5%Drugs3 264 291 +10%Traffi c4 2,427 2,646 +9%1 Abduction, assault, attempted murder, murder (1st and 2nd degree), robbery, and sexual off ences. 2 Arson, break and enter, fraud (including identity theft), mischief, possession of stolen property, theft, and theft of/from vehicle.3 Illegal marijuana grow operations, and cocaine heroin and methamphetamine possession and traffi cking.4 Collision (fatal, injury and property damage), dangerous operation, impaired operation (alcohol/drugs), prohibited driver, roadside prohibitions and immediate roadside prohibitions.

Data Notes and Qualifi ers:• Data extracted in March 2018; in cases of discrepancy,

the most current data will take precedence. • Statistics are for the Coquitlam RCMP jurisdiction

(Coquitlam, Port Coquitlam, Anmore and Belcarra). • Criminal Code off ence data are compiled using select

PRIME BC fi les and are not comprehensive.• All data is subject to change based on investigational

factors and records data quality processes.• Data is collected using “most serious off ence” scoring,

consistent with Statistics Canada and BC Justice Ministry (Police Services Division) data collection practices.

• Collision data is not complete as it only includes fi les where police attended and not all fi les reported to the Insurance Corporation of British Columbia (ICBC).


See www.portcoquitlam.ca/policing or www.coquitlam.rcmp.ca to learn more..


PERFORMANCE MEASURES 2017Community Well-being & Strategic Service Delivery

• Added three additional offi cers to Port Coquitlam’s Uniformed Crime Reduction Unit, which works to increase police visibility and target crime hotspots.

• Continued to work to increase positive interactions between Coquitlam RCMP and the citizens it serves.

Sense of Community & Community Well-being

• Participated in anti-graffi ti initiatives in Port Coquitlam in conjunction with TELUS and School District #43.

• Took part in Port Coquitlam events such as the May Day Parade, Downtown Car Show and the Remembrance Day service.

• Engaged the community online with 843 Facebook posts, 1,359 tweets and 136 website posts.

Community Well-being • Continued to focus on reducing criminal activity related to the three tenets of crime reduction – prolifi c off enders, hotspots, and crime causation factors.

• Continued special projects including distracted driving, pedestrian safety, crime prevention and anti-graffi ti.


GOALS 2018Community Well-being • Communicate eff ectively with citizens about policing and public safety issues.

• Increase positive interactions with the citizens of Port Coquitlam.

Sustainable Future & Sense of Community

• Increase participation in police volunteer programs.


• Continue to focus on the three tenets of crime reduction.• Reduce collisions related to high-risk groups and contributing factors.• Reduce the impact of high volume and high risk non-crime calls on police

resources.


Thousands of people gathered in Leigh Square and Lion’s Park for Port Coquitlam’s Canada 150 celebration: a day-long festival of art, music and nature.


FinancialSection


Auditors’ Report to Mayor and Council

Management's Responsibility for the Consolidated Financial Statements

Auditors’ Responsibility


Auditors’ Report to Mayor and Council

Corporation of the City of Port Coquitlam Page 2

Opinion


Consolidated Statement of Financial Position

AS AT DECEMBER 31, 20172017 2016

FINANCIAL ASSETSCash and cash equivalents $ 3,889,049 $ 7,535,890 Investments Note 3 174,146,606 165,938,783 Accounts and other receivables Note 4 23,551,707 7,988,055 Due from other governments Note 5 626,471 287,825

202,213,833 181,750,553

LIABILITIESAccounts payable and accrued liabilities Note 6 12,303,997 12,750,321 Deferred revenues Note 7 11,775,416 10,576,583 Deposits Note 8 9,730,147 6,556,997 Development cost charges Note 9 32,884,604 32,317,681 Post-employment future benefi ts and compensated absences

Note 10 2,743,000 2,737,000

Debt Note 11 21,080,650 21,672,308 90,517,814 86,610,890

NET FINANCIAL ASSETS 111,696,019 95,139,663

NON-FINANCIAL ASSETSTangible capital assets Note 12 645,103,796 624,636,491

Inventories 294,471 329,998

Prepaid expenses 157,556 94,355 645,555,823 625,060,844

ACCUMULATED SURPLUS Note 13 $ 757,251,842 $ 720,200,507

Commitments and Contingencies Note 17

See accompanying Notes to the Consolidated Financial Statements

John Leeburn, MBAChief Administrative Offi cer

Karen Grommada, CPA, CMADirector of Finance


Consolidated Statement of Operations

FOR THE YEAR ENDED DECEMBER 31, 2017

2017Budget(Notes 2c and 20)

2017 2016

REVENUESTaxation and other levies Note 19 $ 64,542,200 64,792,961 $ 61,519,930 Utility charges 22,063,400 22,591,213 19,250,925 Sale of services 5,021,600 6,696,583 9,021,148 Contributions 11,211,800 7,958,722 6,473,703 Permits and licences 1,848,900 2,893,560 2,827,534 Investment income 1,740,000 2,991,687 2,717,309 Penalties and fi nes 398,400 449,722 438,730 Other revenue 747,800 1,166,590 1,407,267 Gain on disposals and write-downs Note 4a - 16,922,586 230,593 $ 107,574,100 $ 126,463,624 $ 103,887,139

EXPENSES General government $9,442,160 $9,176,563 $8,855,449 Engineering and public works 17,838,915 16,670,762 17,333,893 Recreation 13,661,651 12,807,567 12,615,721 Police services 15,518,484 14,537,292 14,220,414 Fire and emergency services 11,775,781 11,637,604 11,135,010 Development services 3,331,178 3,116,819 2,884,493 Solid waste operations 3,645,554 3,546,218 3,351,827 Water operations 10,465,222 10,255,407 10,171,523 Sanitary sewer operations 8,030,555 7,664,057 7,247,976

$ 93,709,500 $ 89,412,289 $ 87,816,306

ANNUAL SURPLUS $13,864,600 $37,051,335 $16,070,833

ACCUMULATED SURPLUS, beginning of year 720,200,507 720,200,507 704,129,674

ACCUMULATED SURPLUS, end of year $ 734,065,107 $ 757,251,842 $ 720,200,507



Consolidated Statement of Cash Flows


CASH PROVIDED (USED) BY:2017 2016

Annual surplus $ 37,051,335 $ 16,070,833

Items not involving cash: Developer contributions of tangible capital assets (716,211) (4,072,926) Amortization 11,449,554 11,831,408 Gain on disposal of tangible capital assets (772,586) (230,593) Non-cash post-employment future benefi ts and compensated absences 6,000 (178,000)

Change in non-cash operating assets and liabilities Accounts receivable (15,563,652) (847,266) Due from other governments (338,646) 22,577 Accounts payable and accrued liabilities (446,324) 2,619,298 Deferred revenues 1,198,833 332,517 Deposits 3,173,150 337,400 Development cost charges 566,923 4,401,650 Inventories 35,527 254,141 Prepaid expenses (63,201) 20,829 Cash provided by operating activities 35,580,702 30,561,868

FINANCING ACTIVITIES Debt repayment (591,658) (568,972)Cash used in fi nancing activities (591,658) (568,972)

CAPITAL ACTIVITIES Cash used to acquire tangible capital assets (31,817,718) (11,295,897) Cash received from disposals of tangible capital assets 1,389,656 3,616,922 Cash used in capital activities (30,428,062) (7,678,975)

INVESTING ACTIVITIES Purchase of investments (125,056,500) (156,000,000) Redemption of investments 116,848,677 135,753,961 Cash used in investing activities (8,207,823) (20,246,039)

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (3,646,841) 2,067,882

CASH AND CASH EQUIVALENTS, beginning of year 7,535,890 5,468,008

CASH AND CASH EQUIVALENTS, end of year $ 3,889,049 $ 7,535,890

Non-cash transactions Non-cash gain on land sale (Note 4(a)) $ 16,150,000



Consolidated Statement of Change in Net Financial Assets


2017Budget(Notes 2c and 20)

2017 2016

Annual surplus $13,864,600 $37,051,335 $16,070,833 Acquisition of tangible capital assets (70,984,600) (31,817,718) (11,295,897)Developer contributions of tangible capital assets (1,000,000) (716,211) (4,072,926)Amortization of tangible capital assets 13,000,000 11,449,554 11,831,408 Gain on disposal of tangible capital assets - (16,922,586) (230,593)Proceeds on disposal of tangible capital assets - 17,539,656 3,616,922 Use of inventories - 35,527 254,141 Use (increase) of prepaid expenses - (63,201) 20,829 INCREASE IN NET FINANCIAL ASSETS (45,120,000) 16,556,356 16,194,717

NET FINANCIAL ASSETS, beginning of year 95,139,663 95,139,663 78,944,946

NET FINANCIAL ASSETS, end of year $50,019,663 $111,696,019 $95,139,663



Notes to the Consolidated Financial Statements

1. OperationsThe Corporation of the City of Port Coquitlam (the “City”) is incorporated under the Local Government Act of British Columbia. The City’s principal activities include the provision of local government services to residents of the incorporated area. These include administrative, protective, transportation, environmental, recreational, water and sanitary sewer services.

2. Signifi cant Accounting PoliciesThe consolidated fi nancial statements of the City are prepared in accordance with Canadian Public Sector Accounting Standards as prescribed by the Public Sector Accounting Board (“PSAB”) of the Chartered Professional Accountants of Canada.

a. Basis of PresentationThe consolidated fi nancial statements comprise the City’s General, Water, Sewer and Reserve funds and the Port Coquitlam Community Foundation. All inter-fund and inter-entity balances have been eliminated.

Under the Community Charter, City Council may, by bylaw, establish reserve funds for specifi ed purposes: (i) Internally restricted reserves are in accordance with City policy and with bylaws adopted by Council

pursuant to the Community Charter. The policy and bylaws defi ne the funding source for each reserve and their usage.

(ii) Statutorily restricted reserves are reserves restricted by the provincial government in accordance with the Community Charter. The legislation defi nes the funding source for each reserve and their usage.

Trust funds are those that are administered for certain benefi ciaries. In accordance with PSAB recommendations, trust funds are not included in the City’s consolidated fi nancial statements. Trust funds administered by the City are presented in Note 18.

b. Basis of AccountingThe City follows the accrual method of accounting for revenues and expenses. Revenues are recognized in the year in which they are earned and measurable. Expenses are recognized as they are incurred and measurable as a result of receipt of goods and services and/or the creation of a legal obligation to pay.

c. Budget InformationThe budget information reported in the consolidated statement of operations and the consolidated statement of change in net fi nancial assets refl ects the 2017 Financial Plan Bylaw adopted by City Council on May 4, 2017.

d. Cash and Cash EquivalentsCash and cash equivalents consist of cash, highly liquid money market investments and investments with maturities of less than 90 days at acquisition.

e. InvestmentsInvestments are recorded at cost, adjusted for amortization of premiums or discounts. Provisions for losses are recorded when they are considered to be other than temporary.

f. Revenue recognitionTaxes are recorded at estimated amounts when they meet the defi nition of an asset, they are authorized and the taxable event occurs. Levies imposed by other taxing authorities are not included as taxes for municipal purposes. British Columbia Assessment Authority’s appeal process may adjust taxes by way of supplementary roll adjustments. These adjustments are recognized at the time they are assigned.

YEAR ENDED DECEMBER 31, 2017



g. Deferred RevenueDeferred revenue consists of property taxes, utilities, and recreation program fees paid in advance for services yet to be provided. The City defers amounts collected from permits, licences, and other fees and recognizes the amount as revenue in the year in which related inspections are performed or other related expenditures are incurred.

h. DepositsDeposits represent cash collected by the City as security against work performed by property developers. The security is returned to the developer upon satisfactory completion of the work, or recognized into revenue if the work is not performed in accordance with the applicable bylaws.

i. Development Cost ChargesDevelopment cost charges, collected to pay for capital projects due to be developed, are deferred upon receipt and are recognized as revenue when the capital costs for which they were collected are incurred.

j. Post-employment Future Benefi ts and Compensated AbsencesThe City and its employees make contributions to the Municipal Pension Plan. As this plan is a multi-employer plan, contributions are expensed as incurred.

Post-employment future benefi ts and compensated absences also accrue to City employees. Liabilities related to these benefi ts are actuarially determined based on service and best estimates of retirement ages and expected future salary and wage increases. Liabilities under these benefi ts plans are accrued based on projected benefi ts as the employees render services necessary to earn the future benefi ts.

k. Debt Debt is recorded in the consolidated fi nancial statements net of sinking fund assets.

l. Non-fi nancial AssetsNon-fi nancial assets are not available to discharge existing liabilities and are held for use in the provision of services. They are not intended for sale in the ordinary course of operations.

Tangible Capital AssetsTangible capital assets are recorded at cost which includes amounts that are directly attributable to acquisition, construction, development or betterment of the asset. The cost, less residual value, is amortized on a straight line basis over the asset’s useful life as follows:

MAJOR ASSET CATEGORY USEFUL LIFE MAJOR ASSET CATEGORY USEFUL LIFELand Not amortized Drainage Infrastructure 25 to 100 yearsParks Infrastructure 3 to 100 years Land Improvements 45 to 100 yearsVehicles, Machinery & Equipment 5 to 25 years Water Infrastructure 25 to 80 yearsTransportation Infrastructure 10 to 100 years Sanitary Infrastructure 25 to 100 yearsBuildings 20 to 70 years

Amortization begins once the asset is in use and ends when the asset is disposed or decommissioned. Assets under construction are not amortized until the asset is available for productive use.

Tangible capital assets received as contributions are recorded at their fair value at the date of receipt and are also recorded as revenue.

Interest is capitalized whenever external debt is issued to fi nance the construction of tangible capital assets.

Leases, which transfer substantially all of the benefi ts and risks incidental to ownership of property, are accounted for as leased tangible capital assets. All other leases are accounted for as operating leases and the related payments are charged to expenses as incurred.

Natural resources, works of art and historic assets are not recorded as assets in these consolidated fi nancial statements.

InventoriesInventories held for consumption or resale are recorded at the lower of cost and replacement cost.



m. Government TransfersRestricted transfers from governments are deferred and recognized as revenue as the related expenditures are incurred or the stipulations in the related agreement are met. Unrestricted transfers are recognized as revenue when received or if the amount to be received can be reasonably estimated and collection is reasonably assured.

n. Liabilities for Contaminated SitesContaminated sites are a result of contamination being introduced into air, soil, water or sediment of a chemical, organic, radioactive material or live organism that exceeds an environmental standard. Liabilities are recorded net of any expected recoveries.

A liability for remediation of contaminated sites is recognized when a site is not in productive use and the following criteria are met:

i. An environmental standard exists;ii. Contamination exceeds the environmental standards;iii. The City is directly responsible or accepts responsibility;iv. It is expected that future economic benefi ts will be given up; andv. A reasonable estimate of the amount can be made.

The liability is recognized as management’s estimate of the cost of post-remediation including operation, maintenance, and monitoring that are an integral part of the remediation strategy for a contaminated site.

o. Use of EstimatesThe preparation of consolidated fi nancial statements requires management to make estimates and assumptions that aff ect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated fi nancial statements and the reported amounts of revenue and expenses during the reporting period. Signifi cant areas requiring the use of management estimates relate to the determination of post-employment future benefi ts, allowance for doubtful accounts receivable, provision for contingencies and liability for contaminated sites, valuation of contributed tangible capital assets, and useful lives of tangible capital assets. Actual results may diff er from management’s estimates as additional information becomes available. Adjustments, if any, will be refl ected in the consolidated fi nancial statements in the period that the change in estimate is made, as well as in the period of settlement if the amount is diff erent.

p. Segment DisclosureA segment is defi ned as a distinguishable activity or group of activities of a government for which it is appropriate to separately report fi nancial information to achieve the objectives of the standard. Financial information is presented in segmented format in Note 21.

3. InvestmentsInvestments have maturity dates of more than 90 days at acquisition and include term deposits in credit unions and deposits with the Municipal Finance Authority. Short-term deposits include term deposits in credit unions guaranteed by the Province of BC with varying maturity dates from January, 2018 to December, 2018 and have rates of return ranging from 1.60% to 2.31% (2016 - 1.65% to 2.07%). The carrying value of the Municipal Finance Authority Intermediate Fund at December 31 2017 was $6,088,106 (2016 - $5,938,783) and the market value at December 31, 2017 was $5,947,656 (2016 - $5,901,367).

2017 2016Short-term deposits $ 168,058,500 $ 160,000,000 Municipal Finance Authority Intermediate Fund 6,088,106 5,938,783

$ 174,146,606 $ 165,938,783



4. Accounts Receivable2017 2016

Land sale receivable (a) $ 12,245,162 $ - Accounts receivable 4,663,174 1,120,756 Property tax and utility receivable 2,161,474 2,360,428 Development cost charges receivable 2,074,508 2,510,646 Other 2,407,389 1,996,225

$ 23,551,707 $ 7,988,055

a. Land sale receivable In 2017, the City sold land to a developer for $17,275,000. The City also entered into an agreement with a contractor to construct the recreation complex situated on adjacent land. As per the land purchase and sale agreement, the payments remitted by the developer for the land sale are to be off set against progress payments payable by the City for the recreation complex construction. In 2017, the City received a total of $5,029,838 of the land sale proceeds in the form of cash in the amount of $1,125,000 and off sets against progress payments payable in the amount of $3,904,838. The remaining land sale proceeds will be made in installments as follows:

Current $ 95,162 July 29, 2018 4,000,000 July 29, 2019 6,000,000 July 29, 2020 2,150,000

$ 12,245,162

The land sale receivable is non-interest bearing.

5. Due from Other Governments

2017 2016Government of Canada $ 545,596 $ 229,952 Province of British Columbia 80,875 57,747 Other governments - 126

$ 626,471 $ 287,825

6. Accounts Payable and Accrued Liabilities2017 2016

Accounts payable and accrued liabilities $ 7,997,496 $ 9,834,004 Wages and benefi ts payable 2,065,554 2,600,561 Statutory holdbacks 2,046,933 309,287 Due to other governments 194,014 6,469

$ 12,303,997 $ 12,750,321


7. Deferred RevenuesDeferred revenues relate to amounts received in advance of services performed.

December 31, 2016 Additions Revenue

earnedDecember 31,

2017

Property taxes and utilities $ 7,637,519 $ 13,136,788 $ (13,253,354) $ 7,520,953 Programs and services 1,957,138 2,363,610 (2,096,350) 2,224,398 Other 981,926 1,819,729 (771,590) 2,030,065

$ 10,576,583 $ 17,320,127 $ (16,121,294) $ 11,775,416

8. DepositsDeposits represent cash collected as security under the following bylaws: Port Coquitlam Highway Bylaw, 1984 No. 2011; Subdivision Servicing Bylaw 1987 No. 2241; and City of Port Coquitlam Soil Removal and Deposit Bylaw 2002 No. 3331.

9. Development Cost Charges

December 31, 2016

Third PartyContributions

Interest Allocation

Capital Expenditures

December 31, 2017AREA 1

Drainage $ 4,144,040 $ 50,634 $ 80,886 $ - $ 4,275,560 Transportation 9,338,498 350,689 180,617 (407,395) 9,462,409 Parks 3,698,998 261,762 73,895 (41,753) 3,992,902 Water 4,715,945 22,582 90,117 (164,008) 4,664,636 Sanitary 1,480,663 12,927 28,850 - 1,522,440

AREA 2

Drainage 24,672 131,831 1,757 - 158,260 Transportation 4,133,566 152,488 81,670 - 4,367,724 Parks 1,523,960 13,078 25,472 (435,033) 1,127,477 Water 1,378,280 28,623 27,016 - 1,433,919 Sanitary 856,184 7,551 16,683 - 880,418 Parks interest 1,022,875 - 19,422 (43,438) 998,859

$ 32,317,681 $ 1,032,165 $ 626,385 $ (1,091,627) $ 32,884,604

10. Post-Employment Future Benefi ts and Compensated AbsencesThe City provides sick leave and retirement benefi ts to its employees. Eligible employees accumulate sick leave entitlement on a monthly basis and can only use this entitlement for paid time off under certain circumstances. Retirement benefi ts represent the City’s share of the cost to provide eligible employees with severance pay upon retirement.

The amount recorded for these benefi ts is based on an actuarial valuation done by an independent fi rm of actuaries using a projected benefi t actuarial valuation method pro-rated on services. The most recent actuarial valuation of the City’s future benefi ts was completed as at December 31, 2017.

Note 10 continued on next page



10. Post-Employment Future Benefi ts and Compensated Absences (continued)Information regarding the City’s obligations for these benefi ts is as follows:

Non-vested Sick Leave Severance 2017 2016

Accrued benefi t obligation, beginning of year $ 637,000 $ 2,785,000 $ 3,422,000 $ 3,539,000 Service cost 40,000 163,000 203,000 202,000 Interest cost 21,000 89,000 110,000 107,000 Benefi t payments (57,000) (357,000) (414,000) (584,000)Amortization of net actuarial losses 46,000 65,000 111,000 158,000 Accrued benefi t obligation, end of year 687,000 2,745,000 3,432,000 3,422,000 Unamortized actuarial loss (343,000) (346,000) (689,000) (685,000)Accrued benefi t liability $ 344,000 $ 2,399,000 $ 2,743,000 $ 2,737,000

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

2017 2016Discount rates 2.90% 3.20%Expected future infl ation rates 2.50% 2.50%Expected compensation increases 2.58% - 4.63% 2.58% - 4.63%Expected average remaining service lifetime 10 years 10 years

11. DebtThe City incurs debt through the Municipal Finance Authority (MFA) in accordance with the Community Charter to fi nance certain capital expenditures. Sinking fund assets managed by the MFA are netted against related debt. The gross amount of debt and the amount of sinking fund assets available to retire the debt are as follows:

2017 2016 Gross Debt Sinking Fund Asset Net Debt Net Debt

Coast Meridian Overpass, Bylaw 3611, 4.13%, due 2039 $ 25,000,000 $ 3,919,350 $ 21,080,650 $ 21,672,308

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

2018 $ 1,478,252 The City paid $886,594, net of earnings on debt reserve deposit, in interest on debt during the year (2016 - $909,280).

The City has available a revolving facility up to a maximum of $5,000,000 which bears interest at an annual rate of bank prime per annum. The City provided security for the facility by way of a general security agreement. No amounts are outstanding under the banking facility.

2019 1,478,252 2020 1,478,252 2021 1,478,252 2022 1,478,252 Thereafter 25,130,292 Principal and interest payments 32,521,552 Amount representing interest 11,440,902 Debt principal repayments $ 21,080,650



12. Tangible Capital Assets a. Assets Under Construction: Assets under construction having a value of $28,658,444 (2016 - $4,646,266) have not been amortized. Amortization of these assets will commence when the assets are put into service.

b. Contributed Tangible Capital Assets: Contributed tangible capital assets (including transportation, drainage, water and sanitary sewer assets) have been recognized at fair market value at the date of contribution. The value of contributed assets received during the year is $716,211 (2016 - $4,072,926).

Please note: Note 12 spans two pages.

AS AT DECEMBER 31, 2017

LandParks

Infrastructure

Vehicles, Machinery, Equipment

Transportation Infrastructure

COSTOpening balance $ 223,312,159 $ 20,876,065 $ 24,685,739 $ 262,268,294 Add: Additions 1,654,519 93,090 507,297 122,598 Add/(Deduct): Transfers from AUC 26,108 43,957 184,863 2,380,775 Less: Disposals (219,838) (690,267) (109,000) (695,192)Closing balance 224,772,948 20,322,845 25,268,899 264,076,475

ACCUMULATED AMORTIZATIONOpening balance - 11,207,620 14,072,621 58,395,136 Add: Amortization - 725,374 1,497,300 4,341,042 Less: Accumulated amortization on disposals - (688,696) (109,000) (496,405)Closing balance - 11,244,298 15,460,921 62,239,773

Net book value as at December 31, 2017 $ 224,772,948 $ 9,078,547 $ 9,807,978 $ 201,836,702

AS AT DECEMBER 31, 2016

LandParks

Infrastructure

Vehicles, Machinery, Equipment

Transportation Infrastructure

COSTOpening balance $ 219,696,864 $ 22,873,303 $ 24,796,882 $ 259,771,827 Add: Additions 5,928,385 101,159 1,220,800 1,782,076 Add/(Deduct): Transfers from AUC - 2,364,259 712,212 721,544 Less: Disposals (2,313,090) (4,462,656) (2,044,155) (7,153)Closing balance 223,312,159 20,876,065 24,685,739 262,268,294

ACCUMULATED AMORTIZATIONOpening balance - 14,173,813 14,208,808 54,070,874 Add: Amortization - 722,067 1,790,169 4,326,394 Less: Accumulated amortization on disposals - (3,688,260) (1,926,356) (2,132)Closing balance - 11,207,620 14,072,621 58,395,136

Net book value as at December 31, 2016 $ 223,312,159 $ 9,668,445 $ 10,613,118 $ 203,873,158



Buildings DrainageLand

Improvements WaterSanitary

Sewer

Assets Under Construction

(AUC) 2017 Total

$ 37,624,341 $ 88,406,863 $ 20,524,274 $ 75,903,737 $ 58,778,882 $ 4,646,266 $ 817,026,620 197,342 257,540 - 286,006 105,637 29,309,900 32,533,929 - 528,327 43,164 1,568,904 521,624 (5,297,722) - - (62,541) - (247,250) (10,089) - (2,034,177) 37,821,683 89,130,189 20,567,438 77,511,397 59,396,054 28,658,444 847,526,372

18,551,047 30,603,456 5,977,859 32,549,953 21,032,437 - 192,390,129 807,356 1,317,354 290,909 1,586,528 883,691 - 11,449,554 - (24,390) - (95,395) (3,221) - (1,417,107) 19,358,403 31,896,420 6,268,768 34,041,086 21,912,907 - 202,422,576

$ 18,463,280 $ 57,233,769 $ 14,298,670 $ 43,470,311 $ 37,483,147 $ 28,658,444 $ 645,103,796

Buildings DrainageLand

Improvements WaterSanitary

Sewer

Assets Under Construction

(AUC) 2016 Total

$ 37,256,695 $ 87,419,757 $ 20,395,464 $ 75,201,350 $ 57,675,355 $ 5,620,560 $ 810,708,057 (227,086) 876,563 - 535,935 732,134 4,418,857 15,368,823 594,732 114,568 128,810 247,199 429,107 (5,312,431) - - (4,025) - (80,747) (57,714) (80,720) (9,050,260) 37,624,341 88,406,863 20,524,274 75,903,737 58,778,882 4,646,266 817,026,620

17,627,952 29,294,160 5,687,763 30,977,457 20,181,825 - 186,222,652 923,095 1,309,871 290,096 1,597,516 872,200 - 11,831,408 - (575) - (25,020) (21,588) - (5,663,931) 18,551,047 30,603,456 5,977,859 32,549,953 21,032,437 - 192,390,129

$ 19,073,294 $ 57,803,407 $ 14,546,415 $ 43,353,784 $ 37,746,445 $ 4,646,266 $ 624,636,491

c. Works of art and historical treasures: The City manages and controls some works of art and non-operational historical assets located at City sites and public display areas. These assets are not recorded as tangible capital assets and are not amortized.

d. Write-down of tangible capital assets: The write-down of tangible capital assets during the year was nil (2016 - nil).



13. Accumulated Surplus2017 2016

Unrestricted Reserves: General $11,310,469 $ 15,325,251 Water 6,819,427 6,764,871 Sewer 2,913,505 2,597,365

21,043,401 24,687,487

Restricted Reserves Note 14 111,733,268 92,124,484

Equity in tangible capital assets Note 15 624,023,146 602,964,183 Equity in inventories and prepaids 452,027 424,353

624,475,173 603,388,536 $ 757,251,842 $ 720,200,507

14. Restricted ReservesDecember 31,

2016Contributions/

TransfersInterest

AllocationUse of

ReservesDecember 31,

2017Building maintenance $ 3,005,479 $ - $ 35,120 $ (2,390,297) $ 650,302 Cemetery expansion 61,658 57,011 1,749 - 120,418 Community amenities 202,119 147,713 5,354 - 355,186 Environmental 480,949 - 9,330 - 490,279 Equipment 11,012,806 1,423,742 222,791 (518,669) 12,140,670 Gas tax 669,059 223,586 15,149 - 907,794 Land sale 16,114,200 17,406,322 469,920 (1,189,396) 32,801,046 Long term infrastructure 21,339,204 - 381,864 (3,310,939) 18,410,129 Operating 2,497,447 198,951 49,964 (45,604) 2,700,758 Parking 2,888,309 148,855 57,314 (16,855) 3,077,623 Parks and recreation 898,816 157,445 16,243 (280,503) 792,001 Parkland acquisition 2,086,425 65,000 41,107 - 2,192,532 Public safety building 287,084 - 4,611 (98,813) 192,882 Public works special capital 2,346,265 - 45,142 (38,767) 2,352,640 Recreation complex 6,346,757 3,597,075 118,734 (4,049,996) 6,012,570 RCMP 1,457,720 220,000 30,414 - 1,708,134 Roads and drainage infrastructure 8,152,525 546,349 141,427 (2,271,328) 6,568,973

Sewer 3,452,425 - 62,791 (431,534) 3,083,682 Social housing 273,107 147,713 6,731 - 427,551 Unallocated capital 6,802,847 8,074,200 182,295 (2,886,580) 12,172,762 Water 1,749,283 4,128,900 60,759 (1,363,606) 4,575,336

$ 92,124,484 $ 36,542,862 $ 1,958,809 $ (18,892,887) $ 111,733,268




15. Equity in Tangible Capital Assets2017 2016

Cost of tangible capital assets Note 12 $ 847,526,372 $ 817,026,620 Accumulated amortization Note 12 (202,422,576) (192,390,129)Debt incurred to purchase tangible capital assets Note 11 (21,080,650) (21,672,308)

$ 624,023,146 $ 602,964,183

16. Pension PlanThe City and its employees contribute to the Municipal Pension Plan (a jointly trusteed pension plan). The board of trustees, representing plan members and employers, is responsible for administering the plan, including investment of assets and administration of benefi ts. The plan is a multi-employer defi ned benefi t pension plan. Basic pension benefi ts are based on a formula. As at December 31, 2016, the plan has about 193,000 active members and approximately 90,000 retired members. Active members include approximately 38,000 contributors from local governments.

Every three years, an actuarial valuation is performed to assess the fi nancial position of the plan and adequacy of plan funding. The actuary determines an appropriate combined employer and member contribution rate to fund the plan. The actuary’s calculated contribution rate is based on the entry-age normal cost method, which produces the long-term rate of member and employer contributions suffi cient to provide benefi ts for average future entrants to the plan. This rate may be adjusted for the amortization of any actuarial funding surplus and will be adjusted for the amortization of any unfunded actuarial liability.

The most recent valuation for the Municipal Pension Plan as at December 31, 2015, indicated a $2,224 million funding surplus for basic pension benefi ts on a going concern basis. As a result of the 2015 basic account actuarial valuation surplus and pursuant to the joint trustee agreement, $1,927 million was transferred to the rate stabilization account and $297 million of the surplus ensured the required contribution rates remained unchanged.

The City of Port Coquitlam paid $2,916,139 (2016 - $2,699,947) for employer contributions while employees contributed $2,351,874 (2016 - $2,179,888) to the plan in fi scal 2017.

The next valuation will be as at December 31, 2018, with results available in 2019.

Employers participating in the plan record their pension expense as the amount of employer contributions made during the fi scal year (defi ned contribution pension plan accounting). This is because the plan records accrued liabilities and accrued assets for the plan in aggregate, resulting in no consistent and reliable basis for allocating the obligation, assets and cost to individual employers participating in the plan.



17. Commitments and Contingenciesa. The loan agreements with the Greater Vancouver Regional District and the Municipal Finance Authority provide

that, if at any time the scheduled payments provided for in the agreements are not suffi cient to meet the Authority’s obligations in respect of such borrowing, the resulting defi ciency becomes a joint and several liability of the City and the other participants.

b. A number of legal claims have been initiated against the City in varying or unspecifi ed amounts. The outcome of these claims cannot reasonably be determined at this time. The amount of loss, if any, arising from these claims will be recorded in the period in which the loss is realized. Liability insurance is carried by the City, subject to a deductible of $250,000. The City self insures claims under $250,000.

c. “The City is a shareholder and member of E-Comm Emergency Communications for Southwest British Columbia Incorporated (E-Comm) whose services provided include: regional 9-1-1 call centre for the Greater Vancouver Regional District; Wide Area Radio network; dispatch operations; and records management. The City has 1 Class A share and 2 Class B share (of a total of 29 Class A and 23 Class B shares issued and outstanding as at December 31, 2017).

As a Class A shareholder, the City shares in both funding the future operations and capital obligations of E-Comm (in accordance with a cost sharing formula), including any lease obligations committed to by E-Comm up to the shareholder’s withdrawal date.

d. The City provides a share of both the ongoing operations and any additional costs relating to capital assets (in accordance with a negotiated agreement) for the RCMP building located at 2986 Guildford Way, Coquitlam, BC.

e. The City has entered into an agreement for construction of a recreation complex for $122,552,850 with a term of 5 years. The City will off set $16,150,000 of the progress payments against the proceeds from a related land sale (Note 4(a)).

18. Trust FundsCertain assets have been conveyed or assigned to the City to be administered as directed by an agreement or statute. The City holds the assets for the benefi t of, and stands in a fi duciary relationship to, the benefi ciary.

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

2017 2016

Cemetery Perpetual Care FundCash balance, beginning of year $ 1,486,858 $ 1,407,951 Net contributions received 68,123 51,239 Interest earned 29,506 27,668

Cash balance, end of year $ 1,584,487 $ 1,486,858



19. Taxation and Other LeviesIn addition to levying and collecting real property tax for municipal purposes, the City is required to levy and collect taxes on behalf of other jurisdictions as noted below:

2017 2016Gross taxes levied on property $ 100,790,770 $ 96,663,766

Taxes levied and collected on behalf of other jurisdictions Province of BC - School Taxes 28,482,539 27,700,065 Greater Vancouver Regional District 866,483 840,225 BC Assessment Authority 929,274 894,348 South Coast British Columbia Transportation Authority 5,715,499 5,706,014 Municipal Finance Authority 4,014 3,184

35,997,809 35,143,836

Taxation revenue $ 64,792,961 $ 61,519,930

20. Budget InformationThe budget information presented in these consolidated fi nancial statements is based upon the 2017 Financial Plan Bylaw approved by Council on May 4, 2017. The chart below reconciles the approved budget to the budget fi gure reported in these consolidated fi nancial statements.

Budget Amount

Revenue $ 107,574,100 Expenses (93,709,500)Annual surplus per consolidated statement of operations 13,864,600

Add: Amortization 13,000,000 Transfers from reserves 45,565,800

Less: Capital expenditures (70,984,600) Capital contributed by developers (1,000,000) Debt principal repayments (445,800)Approved budget $ -



21. Operations by SegmentThe City provides a wide range of municipal services to its residents, businesses, industries, farms and other properties within its boundaries. The City’s operations and activities are organized and reported by segments broadly based on departmental business units. The departments disclosed in the segmented information, along with the services they provide, are as follows:

General Government:

General: Includes activities that are attributable to multiple segments.

Corporate Support: These support services include: communications and administrative services, corporate offi ce and lands, bylaw services and information services.

Finance: Provides fi nancial services to citizens, City departments and City Council including fi nancial planning and systems, accounting services, revenue and collections, payroll, purchasing and risk management.

Human Resources: Provides specialized advice and assistance in all facets of people management including recruitment, labour relations, occupational health and safety, staff training and development, benefi t administration, and wage and salary administration.

Offi ce of the Chief Administrative Offi cer (CAO): Oversees the implementation of the vision, plans and priorities by ensuring eff ective policies are in place and adhered to and by providing leadership that enables an engaged and productive municipal workforce.

General GovernmentEngineering & Public WorksREVENUE General

Corporate Support Finance

Human Resources

Offi ce of the CAO

Taxation and other levies $ 64,628,761 $ - $ - $ - $ - $ - Utility rates (93,549) - - - - - Sale of services 235,320 31,808 249,887 - 1,200 1,482,368 Contributions 323,747 1,290 - - - 5,482,830 Permits and licences 20,683 1,067,496 30,813 - - 28,940 Investment income 2,991,292 - 395 - - - Penalties and fi nes 232,625 29,725 - - - 13,800 Other revenue 726,273 12,988 60,215 50,000 - 211,404 Gain (loss) on disposals and write-downs - - - - - 17,080,768

$ 69,065,152 $ 1,143,307 $ 341,310 $ 50,000 $ 1,200 $ 24,300,110 EXPENSES Personnel $ 1,393 $ 2,984,165 $ 2,202,225 $ 823,253 $ 268,512 $ 7,583,119 Contracted and other Services 24,587 921,978 321,476 344,766 3,287 1,601,325 Telephone, utilities and rent 162 45,795 64,224 320 65 661,922 Materials and supplies 26,451 98,213 163,731 11,894 3,068 1,906,510 Internal charges (recoveries) 481 (519,180) (1,015,610) 104 - (2,707,514)Insurance and claims 673,112 - 234,503 - - 210,412 Interest and bank charges 888,892 13,894 11,963 - - 4,747 Grants and fi nancial assistance 46,278 - - - - - Amortization 115,889 416,672 - - - 7,410,241

1,777,245 3,961,537 1,982,512 1,180,337 274,932 16,670,762

ANNUAL SURPLUS (DEFICIT) $ 67,287,907 $(2,818,230) $ (1,641,202) $(1,130,337) $ (273,732) $ 7,629,348

Please note: Note 21 spans two pages.



Recreation Police

Services

Fire & Emergency

Services

Development

Services Solid Waste

Water Operations

Sanitary Sewer

Operations 2017 2016 $ - $ - $ - $ 164,200 $ - $ - $ - $ 64,792,961 $ 61,519,930 - - - - 2,673,810 11,613,192 8,397,760 22,591,213 19,250,925 3,661,772 33,752 81,076 293,731 621,098 4,571 - 6,696,583 9,021,148 741,113 600,516 1,379 645,407 - 162,440 - 7,958,722 6,473,703 - - 1,740 1,734,783 - 9,105 - 2,893,560 2,827,534 - - - - - - - 2,991,687 2,717,309 - - - - - 104,989 68,583 449,722 438,730 46,001 9,581 31,574 17,049 30 1,475 - 1,166,590 1,407,267 - - - - - (151,317) (6,865) 16,922,586 230,593 $ 4,448,886 $ 643,849 $ 115,769 $ 2,855,170 $ 3,294,938 $ 11,744,455 $ 8,459,478 $126,463,624 $103,887,139 $ 7,285,827 $ - $ 10,432,296 $ 2,751,275 $ 996,686 $ 652,104 $ 334,105 $ 36,314,960 $ 34,645,532 3,320,479 14,472,748 306,282 293,298 1,061,774 6,505,393 5,030,029 34,207,422 33,868,078 682,111 - 57,381 994 129 75,063 100,961 1,689,127 1,609,716 735,143 - 216,824 5,819 12,689 108,300 57,988 3,346,630 3,777,486 (60,325) - 192,071 48,897 1,474,937 1,328,019 1,258,120 - - 749 - - 4,343 - - - 1,123,119 820,205 133,419 - - 12,193 3 - - 1,065,111 1,088,450 170,088 - - - - - - 216,366 175,431 540,076 64,544 432,750 - - 1,586,528 882,854 11,449,554 11,831,408 12,807,567 14,537,292 11,637,604 3,116,819 3,546,218 10,255,407 7,664,057 89,412,289 87,816,306

$(8,358,681) $(13,893,443) $ (11,521,835) $ (261,649) $ (251,280) $ 1,489,048 $ 795,421 $ 37,051,335 $ 16,070,833

Engineering & Public Works: Provides and maintains a number of essential municipal services and infrastructure including transportation, parks, trails, athletic fi elds, roads and drainage, environmental protection, management of the City’s fl eet and related engineering services.

Recreation: Delivers recreation, sport, community and cultural programs, events and services, and operates recreation facilities.

Police Services: Is a shared service with the City of Coquitlam that protects the community from criminal activity and ensures public safety.

Fire & Emergency Services: Protects life, property and the environment through the provision of emergency response, inspections, code enforcement and public education.

Development Services: Ensures orderly and safe development within the City, including planning, building and development engineering services.

Solid Waste: Includes curbside garbage, recycling and organics collection and glass collection from depot locations across the City.

Water Operations: The water utility is an essential service delivered by the City to its residents and businesses for the supply of high quality, potable water at fl ows and pressures suitable for fi re protection.

Sanitary Sewer Operations: The sanitary sewer utility is an essential service provided by the City to its residents and businesses for the collection and disposal of liquid wastes.



22. Comparative InformationCertain comparative information has been reclassifi ed to conform with the fi nancial statement presentation adopted in the current year.


StatisticalSection (Unaudited)


Average Home Municipal Taxes and Utilities

SURREY | $4,869

DELTA | $5,030

RICHMOND | $6,187

VANCOUVER | $7,469BURNABY | $6,422

LANGLEY TOWNSHIP | $4,609

COQUITLAM | $5,586

PORT COQUITLAM | $4,655

PITT MEADOWS | $4,207

MAPLE RIDGE | $4,740

NEW WESTMINSTER | $6,289

LANGLEY (CITY) | $4,286

NORTH VANCOUVER DISTRICT | $6,706

WEST VANCOUVER | $10,593

NORTH VANCOUVER CITY | $6,047

WHITE ROCK | $6,915

TAX RANGE

> $7,000

$6,500 - $6,999

$6,000 - $6,499

$5,000 - $5,999

$4,000 - $4,999

PORT MOODY | $6,279

Source: BC Ministry of Community, Sport & Cultural Development

$4,207 $4,286

$4,609 $4,655 $4,740

$4,869 $5,030

$5,586 $5,728

$6,047 $6,187 $6,279 $6,289

$6,422 $6,706

$6,915 $7,469

$10,593

$- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000

Pitt MeadowsLangley City

Langley TownshipPort Coquitlam

Maple RidgeSurrey

DeltaCoquitlam

AverageNorth Vancouver City

RichmondPort Moody

New WestminsterBurnaby

North Vancouver DistrictWhite RockVancouver

West Vancouver


0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2013 2014 2015 2016 2017

Total Land Total Improvements

Community Statistics

Dollars (000,000) Source: BC Assessment Authority

Assessed Values for General Municipal Purposes

Population Estimates

Source: BC Ministry of Citizens’ ServicesPeople

10,103 10,154 10,80412,165

15,933

59,279

60,286 60,767

61,541 62,194

54,000

56,000

58,000

60,000

62,000

64,000

2013 2014 2015 2016 2017


Household Cost of City Services

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

Source: City of Port Coquitlam Finance Department

$430.63

$411.03

$349.49

$317.48

$232.93

$261.19

$217.13

$189.36

$170.28

$122.69

$50.94

$42.94

$25.00

$- $50 $100 $150 $200 $250 $300 $350 $400 $450 $500

Water Levy

Policing

Fire & Emergency

Sewer Levy

Administrative Services

Engineering & Public Works

Recreation Services

Solid Waste Fee

Infrastructure Funding

Recreation Complex Levy

Terry Fox Library

Debt Repayment

Recreation Complex Parcel Tax


Property Taxes

Taxes, Major Levies and Other Government Collections

Source: City of Port Coquitlam Finance DepartmentDollars

Property Taxes Levied and Collected

Thousands

2012 2013 2014 2015 2016 2017City of Port Coquitlam - tax $ 51,408 $ 54,066 $ 54,918 $ 57,120 $ 60,688 $ 64,793

Regional District 755 806 789 809 840 866 BC Assessment 821 846 851 870 894 929

Finance Authority 3 3 3 3 3 4 School District 24,369 25,464 26,425 27,146 27,700 28,483

BC Transit Authority 5,546 5,604 5,607 5,671 5,706 5,715

TOTAL CURRENT TAXES LEVIED 82,902 86,789 88,593 91,619 95,831 100,790

Current tax collected ($) 81,159 85,323 86,872 90,306 94,886 99,585 Current tax collected (%) 97.90% 98.31% 98.06% 98.57% 99.01% 98.80%

Tax arrears beginning of year 2,182 2,144 2,227 1,977 1,953 1,667

Tax arrears collected ($) 1,354 1,376 1,529 1,380 1,495 1,318 Tax arrears collected (%) 62.05% 64.18% 68.66% 69.80% 76.59% 79.06%

TOTAL TAX COLLECTIONS $ $ 82,513 $ 86,699 $ 88,401 $ 91,686 $ 96,381 $ 100,903

Source: City of Port Coquitlam Finance Department

-

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

2012 2013 2014 2015 2016 2017


0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

2013 2014 2015 2016 2017

Building Permits Total Tax Collections

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

2012 2013 2014 2015 2016 2017

Taxation and other levies Utility charges Sale of services

Contributions Investment income Other revenue

Taxes and Revenues


Revenues by Source

Building Permits and Total Tax Collection



0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

Engineering &public works

Recreation Policeservices

Generalgovernment

Fire &emergency

services

Developmentservices

Wateroperations

Sanitarysewer

operations

Expenses

Expense by Function

Expense by Object



$87,816,298 $89,412,289$80,383,775 $82,470,841 $85,684,343

20172013 2014 2015 2016Annual Totals

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

Salary and Benefits Materials Contracted Amortization Other

$87,816,298 $89,412,289$80,383,775 $82,470,841 $85,684,343

20172013 2014 2015 2016Annual Totals


Capital Expenditures

Capital Expenditures and Net Debt Per Capita

Capital Expenditures by Source



0

100

200

300

400

500

600

2012 2013 2014 2015 2016 2017

Capital Per Capita Net Debt Per Capita

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

2013 2014 2015 2016 2017

General Levy Reserve Funds Other


Surplus, Reserve and Other Accounts

Surplus, Net Financial Assets and Debt

Accumulated Surplus

Summary of Major Statutory Reserve Funds




640,000,000

660,000,000680,000,000

700,000,000

720,000,000740,000,000

760,000,000

2012 2013 2014 2015 2016 2017

- 20,000,000 40,000,000 60,000,000 80,000,000

100,000,000 120,000,000

2012 2013 2014 2015 2016 2017

Capital Equipment Operating Land sale

020,000,00040,000,00060,000,00080,000,000

100,000,000120,000,000

Annual Surplus Net Financial Assets Gross Debt Net Debt

2012 2013 2014 2015 2016 2017

Annual Report 201768

Taxation and other levies51%

Utility charges18%

Sale of services5% Contributions

6%

Permits and licenses2%

Investment income3%

Other revenue15%

Engineering & public works

19%

Recreation14%

Police services16%

General government10%

Fire & emergency services 13%

Development services

4%

Solid waste operations

4%

Water operations11%

Sanitary sewer operations 9%

2017 Total Revenue and Expenses

2017 Expenses

2017 Revenue

Total Expenses: $89.4 million

Total Revenue: $126.5 million

69City of Port Coquitlam

Principal Taxpayers & Tax Exemptions

Registered Owner Primary Property Taxes Levied0697788 BC Ltd Shopping Centre $ 2,282,185 Canadian Pacifi c Railway Railyard 1,152,215 Kebet Holdings Ltd Miscellaneous 850,309 Artis Poco Place Ltd Shopping Centre 607,723 629654 BC Ltd Warehouse Distribution 584,542 Mondi Properties Miscellaneous 474,017 1510060 Ontario Inc Shopping Centre 465,158 Port of Vancouver Venture Ltd Shipping Company 437,358 Sysco Canada Inc Food Distributor 421,323 RPMG Holdings Ltd Miscellaneous 411,596 Costco Wholesale Canada Ltd Retail Sales 408,881 Westlo Financial Corp Shopping Centre 399,950 De Gobbi Industries Ltd Miscellaneous 370,854 566203 BC Ltd Miscellaneous 299,944 Home Depot Holdings Inc Retail Sales 299,944 Beedie(Kingsway Ave) Holdings II Ltd Manufacturing 296,461 1488 Coast Meridian RD Holdings Ltd Warehouse Distribution 286,494 Onni Development Corp Miscellaneous 283,853 Sunrise Investments Inc Miscellaneous 241,895 Greater Vancouver Transportation Authority Service Repair Garage 208,880 Yen Hoy Enterprises Ltd Shopping Centre 181,780 Snowcat Property Holdings Ltd Shopping Centre 177,973 660775 BC LTD Shopping Centre 175,126 Viam Holdings Warehouse Distribution 168,440 0912890 B C Ltd Shopping Centre 166,227

$ 11,653,128

Name Tax ReliefFoursquare Gospel Church of Canada $ 56,421 Our Lady of Assumption Roman Catholic Church and Elementary 50,821 Royal Canadian Legion Port Coquitlam (British Columbia/Yukon Command No 133) 44,080 Fellowship Deaconry Association of British Columbia 35,828 Vancouver Bible Presbyterian Church 29,850 The Church in Coquitlam 28,291 Port Coquitlam Seniors Housing 27,024 Northview Community Church 22,807 Hope Lutheran Church 22,158 Trustees of Trinity Congregation of the United Church of Canada 18,344 Tri-City Women's Centre 16,271 Southside Baptist Church 13,667 Pentecostal Assemblies of Canada 13,281 Coquitlam Chinese Evangelical Bible Church 12,822 Port Coquitlam Kinsmen Club 11,146 Coquitlam Chinese Evangelical Free Church 10,949 Hyde Creek Streamkeepers 10,397 Port Coquitlam Heritage and Cultural Society 9,451 Tri-City Islamic Centre 9,431 Victory Baptist Church 7,464

$ 450,503

Principal Corporate Taxpayers

Permissive Property Tax Exemptions*

* This list does not include statutory exemptions provided by the province. Permissive Property Tax Exemptions in previous years included both Permissive and Statutory Property Exemptions.

2580 Shaughnessy StreetPort Coquitlam, British ColumbiaCanada V3C 2A8


Tel: 604.927.5411Fax: [email protected]



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