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Strathcona Regional District 2013 Annual Report and Financial Statements
Table of Contents
Page
History and Purpose 3
Vision, Mission and Values 4
Elected Officials and Appointed Officers 5
Message from the Chair 6
Message from the Chief Administrative Officer 7
Functions and Participating Areas 8
2013 Highlights 11
Management’s Responsibility for Financial Reporting 14
Auditors’ Report 15
Consolidated Financial Statements
A Consolidated Statement of Financial Position 17
B Consolidated Statement of Operations 18
C Consolidated Statement of Changes in Net Financial Assets 19
D Consolidated Statement of Cash Flows 20
Notes to the Consolidated Financial Statements 21
Supporting Schedules
1 Consolidated Schedule of Segment Disclosure by Service 2013 28
2 Consolidated Schedule of Segment Disclosure by Service 2012 29
3 Consolidated Schedule of Tangible Capital Assets 30
4 Consolidated Schedule of Long-Term Debt 31
Supplementary Information and Information Pursuant to the Financial Information Act
Statement of Financial Information Approval 34
i Consolidated Summary of Surpluses and Reserves 35
ii Schedule of Changes in Reserve Fund Balances 37
iii Schedule of Service Requisition Limits 38
iv Schedule of Guarantee and Indemnity Agreements 40
v Schedule of Remuneration and Expenses 41
vi Statement of Severance Agreements 42
vii Schedule of Payments to Suppliers 43
Strathcona Regional District 2013 Annual Report and Financial Statements
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Strathcona Regional District 2013 Annual Report and Financial Statements
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History and Purpose
The Strathcona Regional District (SRD) is a partnership of four electoral areas and five municipalities providing approximately 43,000 residents with 53 services that include parks, land use planning, water, solid and liquid waste systems, and a full-service sports facility. The geography of the SRD ranges from forested hills to remote inlets to picturesque villages to vibrant urban landscapes. The borders extend from the Oyster River in the south to the southern part of Brooks Peninsula in the northwest, to the Sayward Valley and then east to take in Cortes, Quadra and the Discovery Islands, and a portion of the mainland north of Powell River.
The SRD was established on February 15, 2008, when the Provincial government restructured the Comox Strathcona Regional District into the Strathcona Regional District and the Comox Valley Regional District, immediately to the south of the SRD. The Strathcona Regional District municipal members include the Villages of Gold River, Sayward, Tahsis, and Zeballos and the City of Campbell River. Its electoral areas, shown on the map below, include Area A (Kyuquot/Nootka-Sayward), Area B (Cortes Island), Area C (Discovery Island-Mainland Inlets) and Area D (Oyster Bay-Buttle Lake).
Strathcona Regional District 2013 Annual Report and Financial Statements
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Vision
To provide the citizens with a healthy environment and social well being that leads to a vibrant
quality of life through responsible economic development and effective delivery of services.
Mission
On behalf of our constituents we will:
Advocate
Liaise with other orders of government (Federal, Provincial, First Nations)
Exercise local control
Deliver services economically and efficiently
Reach out and engage the public
Effectively manage growth
Values
We honour and value:
Respect for each other
Leadership
Integrity
Responsibility
Accountability
Dedication
Innovation
Diversity
Openness
Strathcona Regional District offices
990 Cedar Street Campbell River, BC
Strathcona Regional District 2013 Annual Report and Financial Statements
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2013 Elected Officials and Appointed Officers
Board of Directors
City of Campbell River A. Adams City of Campbell River R. Mennie City of Campbell River R. Kerr City of Campbell River C. Moglove City of Campbell River M. Storry Village of Gold River C. Anderson Village of Sayward J. MacDonald Village of Tahsis B. Overton Village of Zeballos E. Lewis (Chair) Electoral Area A – Kyuquot-Nootka/Sayward G. Whalley Electoral Area B – Cortes Island N. Anderson Electoral Area C – Discovery Islands–Mainland Inlets J. Abram Electoral Area D – Oyster Bay–Buttle Lake B. Leigh
Officers
Chief Administrative Officer R. Hotsenpiller Officer responsible for Financial Administration D. Christenson Officer responsible for Corporate Administration T. Yates
Strathcona Regional District 2013 Annual Report and Financial Statements
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Message from the Chair
As part of my privilege as Chair of the Board, I would like to present to you, on behalf of my colleagues at the Strathcona Regional District Board the 2013 Annual Report. This is the result of many months of Board and staff collaboration and it is a pleasure to now present it to you for your review.
The SRD was established in 2008 as a split in the Comox Strathcona Regional District, by decree of the Minister of the day. Year by year we have been improving on the situation that was handed to us. I am proud to be the Chair of such a promising organization. We are working together extremely well as a Board and with our excellent staff.
In this past year we defied the norm in other regions and hired a new Chief Administrative Officer from within our organization rather than looking afield. Under his leadership we have just about completed the task of putting in place all of the key players necessary to make our organization do what it is intended to do: serve the public!
In the past year we have accomplished many noteworthy goals. We have a new First Nations observer at the table from the Ka:’yu:’k’t’h’/Chek’tles7et’h’ First Nations and we will add more First Nations members to the table as treaties are completed. We are all part of the same community and contribute to the well-being of our area. We have taken part in numerous Federal and Provincial initiatives that will allow our voices to be heard at those levels on issues that affect constituents every day concerning the environment, the economy and your social well being. We have spent a lot of time working through the process of proposals such as a boundary expansion to the City of Campbell River, water and sewer issues in a number of areas and substantial improvements to the Strathcona Gardens facility.
We are finally realizing the building of a new hospital in our area and also one in the Comox Valley. This has been a long time coming and has taken an inordinate amount of energy and time on the part of the Board and the citizens of our area. Together, we will have a facility that we can all be proud of and will make good use of into the future. We are also working diligently on various solid waste management issues for all of the communities within our area. This is a massive undertaking and is a cost that we must bear to meet Provincial requirements and local needs.
It is my hope that in this coming year we will work even more closely together to accomplish the job of governing such a diverse area in the best way possible. We need to work together and ensure that no one is overlooked. We are one large community and we need to realize that sooner than later. Our strength is in our constituents and in our good governance. I look forward to working with my colleagues, our staff and most of all, you, the citizens whom we serve, in the coming year.
Jim Abram Chair of the Board
May 22, 2014
Strathcona Regional District 2013 Annual Report and Financial Statements
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Message from the Chief Administrative Officer
2013 has been a pivotal year in the development of the Strathcona Regional District. From 2008 through 2012, much effort has been directed towards forming and building a new local government. Five years later that energy turns towards the future and how to advance the organization as a modern, cost effective, service-oriented entity. The 2013 Annual Report contributes to this progress, it is an important public record; one that identifies the work of local government, keeps the citizenry informed and contributes to the democratic process.
The SRD delivers over fifty-three separate services over a vast area, including engineering, planning, parks, waste management, recreation and transportation. In each of these areas there are successes to celebrate and challenges to overcome. The SRD remains dedicated to developing strong relationships with First Nations governments and communities and made advances in this regard in 2013. The acquisition of a new fire truck for Cortes Island Volunteer Fire Department increased community safety as did the seismic evaluation of Blenkin Memorial Hall on Quadra Island. Strathcona Gardens continued to reduce our carbon footprint and increase the user experience at the Rod Brind’Amour Arena through a significant overhaul and an upgrade of the pool fixtures. Finding the right balance on servicing agreements between local governments and providing services to our member municipalities remain challenges and goals for the future.
In 2013 the Regional Board narrowed its strategic priorities with a greater emphasis upon community wellness, including a new hospital to the Campbell River Region, community healthcare and contributing to the challenge of homelessness in the region. They also committed to the future by advancing projects that furthered corporate communications, records management and asset management; essential building blocks for the government of the future.
We, as staff, believe in service to the public and take pride in contributing to community wellbeing. I am honoured to work with my colleagues at the SRD and thank them for their dedication. Whether you drop by our service desk, visit our website, call or email, it is a priority to assist the citizens of the SRD and we welcome feedback on how we are serving the community.
While not appearing on any balance sheet, the work of the many volunteers throughout the Regional District makes a profound difference to our collective way of life. Acknowledgement goes out to the volunteers in the emergency program, fire departments, recreational programs, Advisory Planning Commissions amongst many other organizations.
This Annual Report demonstrates that the Regional District is in a healthy financial position; however, like many local governments the SRD has the challenge of ensuring that capital reserves and other levels of funding will be sustainable into the future.
As an organization, we look to advancing Regional Board priorities in 2014 and continuing to provide a high level of service to our rural communities.
Russ Hotsenpiller Chief Administrative Officer
May 22, 2014
Strathcona Regional District 2013 Annual Report and Financial Statements
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Functions and Participating Areas
Function Participating Area(s)
General Government Services
Electoral Areas Administration and Election Services All electoral areas
Feasibility Studies – Electoral Areas and Regional All member municipalities and electoral areas
General Administration All member municipalities and electoral areas
Grants in Aid All electoral areas
Member Municipality Administration All member municipalities
Protective Services
911 Emergency Answering All member municipalities and electoral areas
Area A Kyuquot/Nootka Emergency Program Part of Electoral Area A
Area D Animal Control Electoral Area D
Building Inspection Electoral Area D
Campbell River Area D Fire Protection Part of Electoral Area D
Noise Control Electoral Area D
North Quadra Island Assistance Response Part of Electoral Area C
Sayward Valley Fire Protection Part of Electoral Area A
Soil Deposit and Removal Control Electoral Area D
South Cortes Island Fire Protection Part of Electoral Area B
Strathcona Emergency Program All electoral areas and municipalities
Unsightly Premises Electoral Area D
Transportation Services
Area C Street Lighting Electoral Area C
Area D Street Lighting Part of Electoral Area D
Area D Transit Electoral Area D
Oyster River Bank Protection Part of Electoral Area D
Environmental Health Services
Area A Kyuquot/Nootka Solid Waste Disposal Part of Electoral Area A
Area D Water Part of Electoral Area D
Cortes Island Refuse Collection Part of Electoral Area B
Cortes Island Refuse Disposal Part of Electoral Area B
Craig Road Water Part of Electoral Area D
Liquid Waste Management Plan Electoral Areas B and D
Quathiaski Cove Sewer Part of Electoral Area C
Sayward Valley Refuse Collection Part of Electoral Area A
Sayward Valley Refuse Disposal Village of Sayward and part of Electoral Area A
Walters Cove Water Supply Part of Electoral Area A
Strathcona Regional District 2013 Annual Report and Financial Statements
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Function Participating Area(s)
Development Services
Area A Economic Development Parts of Electoral Area A
Area C Economic Development Electoral Area C
House Numbering Electoral Areas B, C, D and part of Electoral Area A
Planning All electoral areas
Planning – Non-Part 26 All member municipalities and electoral areas
Recreation and Cultural Services
Area B Community Parks Electoral Area B
Area C Community Parks Electoral Area C
Area D Community Parks Electoral Area D
Heritage Conservation Electoral Areas B and C
Kyuquot Community Hall Part of Electoral Area A
Quadra Island Community Hall Part of Electoral Area C
Sayward Valley Recreation and Community Hall Part of Electoral Area A
Strathcona Gardens Recreation Complex City of Campbell River and Electoral Area D
Vancouver Island Regional Library All electoral areas
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2013 Highlights
Ka:’yu:’k’t’h’/Chek’tles7et’h’ First Nations Participation at Regional Board Meetings
On January 18, 2013 the Regional District invited the
Ka:’yu:’k’t’h’/Chek’tles7eth’h’ First Nation to attend a one day
Community to Community Forum at the Maritime Heritage
Centre in Campbell River.
The Forum provided an opportunity for local government and
first nation representatives to meet one another and exchange
ideas, concerns and viewpoints in a constructive and respectful
manner. In addition, it also gave participants the opportunity to learn from each other and to start building
a relationship that would sustain their mutual interests over the long term.
At the January 24th Regional Board meeting, the directors passed a resolution announcing an intention to
invite the Ka:’yu:’k’t’h’/Chek’tles7et’h’ First Nations government to participate in Regional Board meeting as
an observer. On March 13, 2013 the Regional Board amended its procedure bylaw to recognize
participation at Board meetings by treaty first nations and passed a resolution inviting the
Ka:’yu:’k’t’h’/Chek’tles7et’h’ First Nations to appoint a representative to participate at Regional Board and
Committee of the Whole meetings as an observer.
Finally, on July 10, 2013, Chair Edward (Ted) Lewis welcomed the Ka:’yu:’k’t’h’/Chek’tles7et’h’ First
Nations representative Lillian Jack, to the Board.
New Fire Pumper Truck for the Cortes Island Volunteer Fire Department
In 2013 the Cortes Island Volunteer Fire Department
took possession of a new 2013 E-One Freightliner Fire
Pumper to fulfill its service requirements. This fire
truck has several operational and design elements that
are ideal for meeting the Cortes Island firefighting
requirements such as:
a top mount pump console for operator visibility
and safety;
a 970 gallon water tank capacity;
a Hale 1250 gpm fire pump;
a 4 door crew cab with 4 SCBA jump seats; and
a 300 hp diesel engine.
Strathcona Regional District 2013 Annual Report and Financial Statements
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The fire truck has the ability to navigate steep and winding terrain which makes it ideal for use on Cortes
Island. It is anticipated that the new fire truck will continue to meet the community’s service requirements
for the next 20 years.
Seismic Study for Blenkin Memorial Hall
The Quadra Island community centre, located at Blenkin Memorial Park on West Road, Quadra Island is a focal point of the community and residents are supportive of, and participate in, numerous programs and activities offered through the facility. In the event of an emergency, the centre is identified as a reception centre where emergency services personnel would be working to deal with the emergency. The main hall was built in 1985 with a new stage and a two-storey addition, consisting of meeting rooms and additional washroom facilities, added in 2001.
As part of the 2013-2017 financial plan process monies were set aside to complete a seismic evaluation of the community centre. The professional services of Herold Engineering Ltd. were retained to complete a seismic project identification report which was completed in October 2013. The report identified upgrades planned for completion in 2015.
Parks and Trails Symposium on Cortes Island On April 23, 2013, 20 community participants and 5 presenters gathered at Linnea School on Cortes Island for an opportunity for community input on park and trail interests. It also gave an opportunity for the community to review and establish priorities for park interests as a result of the adoption of the new Official Community Plan. The symposium concluded with a group review that identified trail mapping, trail connections, beach accesses and the organization of a trail working group as top priorities.
Strathcona Regional District 2013 Annual Report and Financial Statements
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Strathcona Gardens Recreation Complex
The Strathcona Gardens (the “Gardens”) is a multipurpose recreation centre which has 2 NHL size ice
surfaces, a leisure/practice ice surface, a 37.5 meter swimming pool, a leisure pool with a waterslide and a
fitness area.
Rod Brind’Amour Arena
The Rod Brind’Amour Arena underwent a major overhaul in
2013 which included replacing the existing concrete slab and in-
slab brine system, redesigning and updating the mechanical
system to utilize waste heat for the subfloor heating, updating
the electrical system to ensure efficient, trouble free operation
and replacement of the dasher board system, side boards and
glass. The total cost of the project was $940,000.
Main Pool Lighting and Fire Alarm Panel Upgrades
Some other Strathcona Gardens highlights for 2013 include new
LED lighting in the main pool. The lighting was replaced with
more efficient LED lights which will draw less than 30% of the
energy that the original metal halide fixtures did. The new
lighting is very low maintenance and comes with a 10 year
guarantee.
A new fire alarm panel was installed in August 2013 replacing
the old 1979 system. The new panel provides a more
serviceable and upgradable system which has the ability to add
smoke detectors, heat sensors and pre-recorded voice
instructions for the public during an emergency.
The total cost for both the pool lighting and fire alarm panel
project was $61,860, with 50% of the cost funded by Western
Economic Diversification Canada. Both projects were
completed on time and within budget.
Score Clock
Thanks to a contribution from the Campbell River Minor
Hockey Association, Arena 2 also has a new score clock!
The old score clock was installed in 1996 and used
incandescent bulbs that resemble the older 110 volt
Christmas lights. It has been replaced with a new LED clock
that works through a wireless controller. The new clock
consumes less energy and will not require constant bulb
replacement.
Strathcona Regional District 2013 Annual Report and Financial Statements
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Management’s Responsibility for Financial Reporting
The consolidated financial statements have been prepared by management in accordance with Canadian public sector accounting standards for British Columbia local governments and the integrity and objectivity of these statements are management’s responsibility. Management is also responsible for all the supple-mentary statements and schedules, and for ensuring that this information is consistent, where appropriate, with the information contained in the financial statements.
Management is also responsible for implementing and maintaining a system of internal controls to provide reasonable assurance that reliable financial information is produced.
The Board of Directors is responsible for reviewing and approving the financial statements and for ensuring that management fulfils its responsibilities for financial reporting and internal control.
The external auditors, MNP LLP, conduct an independent examination in accordance with generally accepted auditing standards and express their opinion on the financial statements. Their examination includes a review and evaluation of the Regional District’s system of internal controls and appropriate tests and procedures to provide reasonable assurance that the financial statements are presented fairly. The external auditors have full and free access to the Board of Directors and meet with it at least two times a year.
Dawn Christenson, BAccS, CPA, CGA Officer responsible for Financial Administration, pursuant to Section 199 of the Local Government Act
May 22, 2014
Prepared pursuant to Financial Information Regulation, Schedule 1, section 9
Strathcona Regional District 2013 Annual Report and Financial Statements
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Independent Auditors' Report
To the Board of Directors of the Strathcona Regional District: We have audited the accompanying consolidated financial statements of the Strathcona Regional District, which comprise the consolidated statement of financial position as at December 31, 2013 and the consolidated statements of operations, changes in net financial assets, cash flows and related schedules 1 to 4 for the year then ended, and a summary of significant accounting policies and other explanatory information. Management’s Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Regional District as at December 31, 2013, and the results of its operations, changes in net financial assets and its cash flows for the year then ended in accordance with Canadian public sector accounting standards. Other Matters The supplementary information, including schedules i through vii, is presented for purposes of additional analysis. Such supplementary information has not been subjected to the auditing procedures applied in the audit of the consolidated financial statements. We have not audited, reviewed or otherwise attempted to verify the accuracy or completeness of such information. Readers are cautioned that these supplementary statements may not be appropriate for their purposes.
Campbell River, British Columbia
May 22, 2014 Chartered Accounants
201-990 Cedar Streeet, Campbell River, BC, V9W 7Z8 Phone: 250-287-2131
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Statement A
2013 2012
Financial assetsCash and cash equivalents (Note 3) 10,191,429$ 9,629,106$ Receivables (Note 4) 753,269 306,808 Inventory for resale 10,234 9,683 Investments (Note 5) 149,985 149,985 Municipal debt receivable (Note 6) 5,021,961 6,326,409
Total financial assets 16,126,878 16,421,991
LiabilitiesAccounts payable and accrued liabilities (Note 7) 913,003 616,188 Deferred revenue (Note 8) 3,248,896 2,844,155 Long-term debt
Member municipalities (Note 6) 5,021,961 6,326,409 Regional District (Note 10) (Schedule 4) 833,535 493,596
Total liabilities 10,017,395 10,280,348
Net financial assets 6,109,483 6,141,643
Non-financial assetsPrepaid expenses 87,449 36,029 Tangible capital assets (Schedule 3) 15,602,549 14,792,522
Strathcona Regional District
Consolidated Statement of Financial Position
As at December 31, 2013
Total non-financial assets 15,689,998 14,828,551
Accumulated surplus (Note 11) 21,799,481$ 20,970,194$
Contingent liabilities (Note 13)
Dawn Christenson, BAccS, CPA, CGA
Officer responsible for financial administration,
pursuant to Section 199 of the Local Government Act
The accompanying notes and schedules are an integral part of these financial statements.
Strathcona Regional District 2013 Annual Report and Financial Statements
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Statement B
2013 2013 2012Actual Budget Actual
(Note 20)
RevenueFrontage and parcel taxes 18,507$ 18,484$ 18,484$ Grants in lieu of taxes 156,991 126,532 159,664 Property tax requisition 7,844,155 7,844,155 7,311,010 Government grants and transfers 722,559 755,605 700,744 Sales of services 1,889,847 1,995,837 1,886,794 Other revenue from own sources 146,001 86,899 94,760 Contributions from others 18,851 14,267 9,816 Interest earned 88,594 10,000 87,355 Actuarial adjustment of debenture debt 2,908 - 2,525
Total revenue 10,888,413 10,851,779 10,271,152
ExpenseGeneral government services 2,084,768 2,620,743 2,124,476 Protective services 1,094,193 1,172,578 1,096,623 Transportation services 155,848 160,893 149,045 Environmental health services 868,699 1,030,190 764,929 Development services 535,635 670,056 470,068 Recreation and cultural services 5,319,983 5,069,317 5,318,451
Total expense 10,059,126 10,723,777 9,923,592
Annual surplus 829,287 128,002 347,560
Accumulated surplus, beginning 20,970,194 20,970,194 20,622,634
Accumulated surplus, ending 21,799,481$ 21,098,196$ 20,970,194$
Strathcona Regional District
Consolidated Statement of Operations
Year ended December 31, 2013
The accompanying notes and schedules are an integral part of these financial statements.
Strathcona Regional District 2013 Annual Report and Financial Statements
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Statement C
2013 2013 2012Actual Budget Actual
(Note 20)
Annual surplus 829,287$ 128,002$ 347,560$
Acquisition of tangible capital assets (1,605,874) (2,288,403) (106,197) Amortization of tangible capital assets 795,847 - 761,294 Change in prepaid expenses (51,420) - (6,283)
Increase (decrease) in net financial assets (32,160) (2,160,401) 996,374
Net financial assets, beginning 6,141,643 6,141,643 5,145,269
Net financial assets, ending 6,109,483$ 3,981,242$ 6,141,643$
Strathcona Regional District
Consolidated Statement of Changes in Net Financial Assets
Year ended December 31, 2013
The accompanying notes and schedules are an integral part of these financial statements.
Strathcona Regional District 2013 Annual Report and Financial Statements
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Statement D
2013 2012
Operating activitiesAnnual surplus 829,287$ 347,560$
Items not affecting operating activities:Actuarial adjustment of debenture debt (2,908) (2,525) Amortization of tangible capital assets 795,847 761,294 Change in prepaid expenses (51,420) (6,283) Gain on disposal of tangible capital asset - (1,000)
Decrease (increase) in non-cash financial assets: Receivables (446,461) 34,612 Inventory for resale (551) 1,223
Increase in short-term liabilities:Accounts payable and accrued liabilties 296,815 28,250 Deferred revenue 404,741 437,015
Cash provided by operating activities 1,825,350 1,600,146
Capital activitiesAcquisition of tangible capital assets (1,605,874) (106,197) Proceeds on disposition of tangible capital asset - 1,000
Cash provided by (applied to) capital activities (1,605,874) (105,197)
Financing activitiesCapital lease principal repaid - (11,983) Debt principal repaid (197,267) (166,267) Net debt issued for capital 540,114 -
Cash provided by (applied to) financing activities 342,847 (178,250)
Net change in cash and cash equivalents 562,323 1,316,699
Cash and cash equivalents, beginning 9,629,106 8,312,407
Cash and cash equivalents, ending 10,191,429$ 9,629,106$
Supplemental information
Interest received 125,780$ 119,684$
Interest paid 21,195$ 17,814$
Strathcona Regional District
Consolidated Statement of Cash Flows
Year ended December 31, 2013
The accompanying notes and schedules are an integral part of these financial statements.
Strathcona Regional District 2013 Annual Report and Financial Statements
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Strathcona Regional District Notes to Consolidated Financial Statements
Year ended December 31, 2013
1. Purpose
The Strathcona Regional District (Regional District) was incorporated on February 15, 2008 by letters patent issued by the Province of British Columbia. Its principal activities are the provision and coordi-nation of local government services to the residents of four unincorporated electoral areas and five municipalities within its boundaries. These services include general government administration, bylaw enforcement, planning and development services, building inspection, fire protection and emer-gency response planning, public transportation, parks and recreation, water distribution and sewer collection and disposal, solid waste collection and disposal and street lighting.
2. Significant accounting policies
a) Principles of consolidation
The Regional District follows Canadian public sector accounting standards. The resources and operations of the Regional District are segregated into various funds for accounting and financial reporting purposes, each being treated as a separate entity with responsibility for the stewardship of the assets allocated to it.
The consolidated financial statements are prepared in accordance with the recommendations of the Public Sector Accounting Board (PSAB). The consolidated financial statements include the activities related to all funds belonging to the one economic entity of the Regional District. Inter-fund transactions and fund balances have been eliminated on consolidation.
b) Cash equivalents
Cash equivalents are comprised primarily of Municipal Finance Authority (MFA) pooled investments including money market, intermediate and bond funds. Regional District funds invested with MFA are pooled with other local governments and managed independently by Phillips, Hager & North Investment Management. The investments are carried at cost which approximates market value.
c) Inventory
Inventory for resale is recorded at the lower of cost or net realizable value as a financial asset.
d) Financial instruments
Financial instruments consist of cash and cash equivalents, investments, receivables, municipal debt receivable, accounts payable and accrued liabilities, temporary borrowing and long-term debt. Unless otherwise noted, it is management’s opinion that the Regional District is not exposed to significant interest, currency or credit risk arising from these financial instruments.
e) Non-financial assets
Non-financial assets are not available to discharge existing liabilities and are held for use in the provision of services. They have useful lives extending beyond the current year and are not intended for sale in the ordinary course of business.
f) Tangible capital assets
Tangible capital assets are recorded at cost, net of tangible capital asset disposals, write-downs and amortization. The cost of the tangible capital assets, which includes all amounts that are directly attributable to acquisition, construction, development or betterment of the asset, is amor-tized on a straight line basis over their estimated useful lives as follows:
Land improvements 20 to 50 years
Buildings 40 to 50 years
Building improvements 20 years
Machinery, equipment, vehicles and fixtures 5 to 20 years
Water systems 50 years
Sewer system 15 to 50 years
Strathcona Regional District 2013 Annual Report and Financial Statements
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Strathcona Regional District Notes to Consolidated Financial Statements
Year ended December 31, 2013
One-half of the annual amortization is charged in the year of acquisition and in the year of dis-posal. Assets under construction are not amortized until the asset is put into use. Assets contributed to the Regional District are recorded at fair value at the time of contribution.
g) Accrued employee benefits
Based on obligations as determined by collective agreements and contractual arrangements, employee benefit accruals, which include an allowance for vacation entitlement, are recorded in the year in which they are earned.
h) Post employment benefits
The long-term, post employment benefit liability of the Regional District will be met by the Munici-pal Pension Plan into which both employees and the Regional District contribute. The Regional District is only liable for the interim retirement benefits for early retirees, from the date of retire-ment to the effective start date of the Municipal Pension Plan. Any liability for these benefits is accrued when the event occurs and the obligation arises.
i) Government transfers In 2013, the Regional District adopted the provisions of the Public Sector Accounting standard as established by the revised section PS 3410 issued in March 2011. Section PS 3410 permits a recipient government to recognize government transfers as revenue when the transfer is authorized by the transferring government, unless the transfer creates a liability for the recipient. A liability is created as a result of the recipient government not yet meeting eligibility criteria or the existence of stipulations in the transfer agreement. When a government transfer results in recognition of a liability, revenue is recognized by a recipient government as the liability is settled. The adoption of the newly issued section did not have a material impact on the consolidated financial statements.
j) Revenue recognition
Revenue is recorded on an accrual basis and is recognized in the period in which it is earned. Property tax requisition revenue is recognized in the year the requisitions are levied. Grants in lieu of taxes are recorded on an accrual basis when it is possible to reasonably estimate the amounts receivable. User fees for water, sewer and solid waste services are recognized as revenue when services have been provided, amounts are known and collection is reasonably assured. Interest income is recognized in the period in which it is earned.
k) Use of estimates
The preparation of financial statements in conformity with Canadian public sector accounting standards requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Significant areas requiring management estimates are the determination of tangible capital assets, their useful life, amortization, actuarial adjustments and provisions for contingencies. Actual results may vary from the estimates and adjustments will be reported and reflected in operations as they become known. Changes to the underlying assumptions and estimates or legislative changes in the near term could have a material impact on the provisions recognized.
3. Cash and cash equivalents
Included in cash and cash equivalents is $1,478,896 (2012 – $1,456,799) of short-term investments held with the Municipal Finance Authority in money market, intermediate and bond funds. These investments are carried at market value which approximates cost.
Also included in cash and cash equivalents is $126,331 (2012 – $133,673) that is externally restricted by agreement for the Evans Bay Port Facility reserve (Note 12).
Strathcona Regional District 2013 Annual Report and Financial Statements
Page 22
Strathcona Regional District Notes to Consolidated Financial Statements
Year ended December 31, 2013
4. Receivables
2013 2012
Government of Canada $ 86,652 $ 44,630
Province of British Columbia 38,557 27,003
Regional and local governments 52,408 19,097
Utility service customers 128,416 91,095
Other trade receivables 447,236 124,983
$753,269 $306,808
5. Investments
Investments comprise a five-year 2.86% non-redeemable Guaranteed Investment Certificate at a cost of $149,985 (2012 – $149,985) which matures on July 5, 2016. This amount is externally restricted by an endowment fund agreement.
6. Municipal debt receivable
Pursuant to the Local Government Act, the Regional District acts as the agency through which its member municipalities borrow funds from the Municipal Finance Authority (MFA). The annual cost of servicing this municipal debt is recovered entirely from the borrowing member municipality. However, in the event of default the Regional District is contingently liable to the MFA for this debt.
2013 2012
City of Campbell River $4,909,640 $6,193,333
Village of Sayward 112,321 119,509
Village of Zeballos 0 13,567
$5,021,961 $6,326,409
7. Accounts payable and accrued liabilities
2013 2012
Province of British Columbia $ 51,904 $ 48,230
Regional and local governments 215,417 77,398
Accrued interest on long-term debenture debt 2,104 2,103
Payroll liabilities 228,919 322,954
Other trade payables 414,659 165,503
$913,003 $616,188
8. Deferred revenue
2013 2012
Community Works Fund (Note 9) $3,151,440 $2,719,335
Deferred grant contributions 39,942 76,851
Unearned revenue 57,514 47,969
$3,248,896 $2,844,155
Strathcona Regional District 2013 Annual Report and Financial Statements
Page 23
Strathcona Regional District Notes to Consolidated Financial Statements
Year ended December 31, 2013
9. Community Works Fund
Community Works Fund is a component of the Gas Tax Agreement funding provided by the Govern-ment of Canada, through the Union of British Columbia Municipalities. Gas Tax Agreement funding may be used towards designated public transit, community energy, water, wastewater, solid waste and capacity building projects, as specified in the funding agreements. Unspent funds and the appli-cable interest earned are recorded as deferred revenue. The following balances are included in the totals reported for deferred revenue.
2013 2012
Community Works Fund, beginning balance $2,719,335 $2,205,555
Add: Amounts received during the year 490,764 490,970
Interest earned on funds 37,785 33,643
Less: Amounts allocated to projects during the year (96,444) (10,833)
Community Works Fund, ending balance $3,151,440 $2,719,335
10. Long-term debt
Long-term debt consists of interim borrowing from Municipal Finance Authority (MFA) for terms up to five years and debenture debt for longer terms. Under MFA’s interim borrowing program, loans are charged interest based on the daily 30-day Canadian Dollar Offered Rate (CDOR) plus 0.50%. Regular principal payments are not required but any amount outstanding is due at the end of the five-year term. Details of long-term debt, including maturity dates, interest rates and outstanding amounts, are summarized in the Schedule 4 – Consolidated Schedule of Long-term Debt.
Payments of principal on issued debt of the Regional District, not including municipal debt, for the next five years are:
2014 $ 6,267
2015 212,267
2016 6,267
2017 5,080
2018 514,194
Total $744,075
Interest on long-term debt recorded in the Consolidated Statement of Operations in 2013 is $19,919 (2012 – $17,748).
11. Accumulated surplus
2013 2012
Equity in tangible capital assets $14,777,157 $14,307,772
Operating funds 1,722,645 1,746,949
Capital funds 122,712 122,712
Reserve funds 3,823,965 3,574,860
Appropriated surplus 1,353,002 1,217,901
Accumulated surplus $21,799,481 $20,970,194
Strathcona Regional District 2013 Annual Report and Financial Statements
Page 24
Strathcona Regional District Notes to Consolidated Financial Statements
Year ended December 31, 2013
12. Evans Bay Port Facility reserve
On March 22, 2010 Transport Canada divested the Evans Bay Port Facility to the Strathcona Regional District. Divestiture funds are used for eligible operations and maintenance expense, net of any input tax credits or rebates, up to the period ending March 22, 2015. The unused portion of the contribution has been deposited in a separate Canadian interest-bearing bank account dedicated exclusively for the operation of the Port.
2013 2012
Evans Bay Port Facility reserve, beginning balance $133,673 $137,861
Add: Interest earned on funds 1,726 1,781
Less: Amount applied to eligible expenses (9,068) (5,969)
Evans Bay Port Facility reserve, ending balance $126,331 $133,673
13. Contingent liabilities
As at December 31, 2013, there existed outstanding claims against the Regional District. These claims have been referred to legal counsel and to the Regional District’s liability insurers. It is not possible to determine the Regional District’s potential liability, if any, with respect to these matters.
14. Pension liability
The Regional District and its employees contribute to the Municipal Pension Plan (the Plan), a jointly trusteed pension plan. The board of trustees, representing plan members and employers, is responsible for overseeing the management of the Plan, including investment of the assets and administration of benefits. The Plan is a multi-employer contributory pension plan. Basic pension benefits provided are based on a formula. The Plan has about 179,000 active members and approximately 71,000 retired members. Active members include 71 contributors from the Regional District.
The most recent actuarial valuation as at December 31, 2012 indicated a $1.370 billion funding deficit for basic pension benefits. The next valuation will be as at December 31, 2015 with results available in 2016. Employers participating in the Plan record their pension expense as the amount of employer contributions made during the fiscal year (defined contribution pension plan accounting). This is because the Plan records accrued liabilities and accrued assets for the Plan in aggregate with the result that there is no consistent and reliable basis for allocating the obligation, assets and cost to the individual employers participating in the Plan.
The Regional District paid $268,543 (2012 – $241,269) for employer contributions while employees contributed $241,985 (2012 – $230,932) to the Plan in fiscal 2013.
15. Municipal Finance Authority debt reserve funds
The Regional District secures its long-term borrowing through the Municipal Finance Authority (MFA). As a condition of these borrowings, a portion of the debenture proceeds is retained by MFA as debt reserve funds. As at December 31, 2013 the Regional District had debt reserve funds of $2,978 (2012 – $2,840).
Strathcona Regional District 2013 Annual Report and Financial Statements
Page 25
Strathcona Regional District Notes to Consolidated Financial Statements
Year ended December 31, 2013
16. North Island 911 Corporation
The 911 emergency answering and fire dispatch services are provided by the North Island 911 Corporation which is owned by the Regional Districts of Alberni-Clayoquot, Comox Valley, Mount Waddington, Nanaimo, Powell River and Strathcona. The shares in the corporation are owned as follows:
Alberni-Clayoquot 3 shares
Comox Valley 6 shares
Mount Waddington 1 share
Nanaimo 5 shares
Powell River 2 shares
Strathcona 4 shares
The Strathcona Regional District’s investment in shares of the North Island 911 Corporation is recorded at cost.
17. Environmental regulations
The Regional District makes every effort to comply with all environmental regulations that apply to its operations. These regulations may require future expenditures to meet applicable standards and subject the Regional District to possible penalties for violations. Amounts required to meet these obligations will be charged to operations when incurred or set aside as future reserves when they can be reasonably estimated.
18. Segmented information
The Strathcona Regional District is a diversified local government providing a wide range of services to 43,000 residents, including parks, recreation centre, community halls, fire protection, water and sewer services. As a requirement of the Local Government Act, separate financial records must be kept for each service providing detailed allocations of assets and liabilities, revenues and expenses, information concerning reserve funds and other pertinent financial details. For each reported segment, revenues and expenses represent amounts that are directly attributable to the segment and also amounts that are allocated on a reasonable basis.
Segmentation has been determined on a functional basis with consideration to service delivery and departmental accountabilities. The following is a description of the types of services included in each of the main service segments of the Regional District’s financial statements. A detailed summary of the 2013 revenues and expenses can be found in Schedule 1 of the accompanying financial state-ments. Schedule 2 contains 2012 comparative figures.
General Government
General government comprises member municipality and electoral area governance, general admin-istration, feasibility studies and grants in aid.
Protective Services
Protective services include volunteer fire departments, emergency programs, 911 answering service, building inspection and various bylaw compliance services.
Transportation
Transportation services include a rural transit service, street lighting and bank protection.
Environmental Health
The environmental health segment includes solid waste collection and disposal, liquid waste manage-ment planning, water distribution, and wastewater collection and disposal for participating electoral areas.
Strathcona Regional District 2013 Annual Report and Financial Statements
Page 26
Strathcona Regional District Notes to Consolidated Financial Statements
Year ended December 31, 2013
Development
Development services consist of rural land use planning, economic development, heritage conserva-tion and house numbering.
Recreation and Culture
Recreation and cultural services include a full-service recreation facility offering fitness, ice and aquatic programs, community parks and trail networks and contributions towards community halls and the Vancouver Island Regional Library.
19. Comox-Strathcona Regional Hospital District
The board members of the Strathcona Regional District sit on the board of the Comox-Strathcona Regional Hospital District (CSRHD) together with the board members of the Comox Valley Regional District. The Regional District and the CSRHD are separate legal entities as defined by separate letters patent and authorized by separate legislation.
20. Reconciliation of 2013 budget
The budget amounts presented throughout these financial statements are audited and represent the five year financial plan bylaw approved by the Regional District Board on March 28, 2013.
The financial plan anticipated use of surpluses accumulated in previous years to balance against cur-rent year expenditures in excess of current year revenues. Another significant variance is that the financial plan anticipated capital expenditures rather than amortization expense.
The summary below reconciles the 2013 adopted financial plan to the Consolidated Statement of Operations.
Consolidated deficit, per the 2013 to 2017 Financial Plan and Capital Expenditure Program Bylaw No. 169, as approved March 28, 2013
($ 1,687,782)
Add:
Capital acquisitions 2,288,403
Debt principal payments 197,267
Transfers to reserves and appropriated surplus 311,814
Less:
Proceeds from borrowing (638,800)
Transfers from reserves (342,900)
Budgeted surplus, as restated $ 128,002
21. Recent accounting pronouncements
In June 2010, the Public Sector Accounting Board (PSAB) issued PS 3260 Liability for Contaminated Sites to establish recognition, measurement and disclosure standards for liabilities associated with the remediation of contaminated sites. The new section defines activities included in a liability for remediation, establishes when to recognize and how to measure a liability for remediation, and provides the related financial statement presentation and disclosure requirements. PS 3260 is effective for fiscal years beginning on or after April 1, 2014. The Regional District has not yet determined the effect of the new section on its consolidated financial statements.
22. Comparative figures
Prior year’s comparative figures have been reclassified where applicable to conform to the current year’s presentation.
Strathcona Regional District 2013 Annual Report and Financial Statements
Page 27
Sch
edu
le 1
2013
2013
Act
ual
Bud
get
(Not
e 20
)
Rev
enu
eF
ront
age
and
parc
el ta
xes
$
-
$
- $
4
,774
$
13
,733
$
-
$
-
18,5
07$
18,4
84$
Gra
nts
in li
eu o
f tax
es
112
,447
4
,651
174
567
1,66
3
37
,489
15
6,99
1
12
6,53
2
P
rope
rty
tax
requ
isiti
on
1
,122
,818
1
,181
,197
165
,302
466
,503
475
,960
4
,432
,375
7,
844,
155
7,
844,
155
G
over
nmen
t gra
nts
and
tran
sfer
s
311
,325
14
,425
-
40
,000
1
2,50
0
344
,309
72
2,55
9
75
5,60
5
S
ales
of s
ervi
ces
-
7,4
40
-
5
32,5
81
72
1,3
49,7
54
1,88
9,84
7
1,99
5,83
7
Oth
er r
even
ue fr
om o
wn
sour
ces
1,
703
52,5
94
3
46
15,7
34
49,
598
26,0
26
146,
001
86,8
99
Con
trib
utio
n fr
om o
ther
s
-
-
-
-
1,50
0
17
,351
18
,851
14
,267
In
tere
st e
arne
d
4
5,02
9
2
,584
657
3
,685
29
7
36
,342
88
,594
10
,000
A
ctua
rial a
djus
tmen
t of d
eben
ture
deb
t
-
-
1
,404
1
,504
-
-
2,
908
-
To
tal r
even
ue
1,5
93,3
22
1,2
62,8
91
1
72,6
57
1,0
74,3
07
5
41,5
90
6,2
43,6
46
10,8
88,4
13
10
,851
,779
Exp
ense
Labo
ur a
nd b
enef
its
1
,162
,074
155
,997
3
,322
68
,606
376
,580
2
,870
,418
4,
636,
997
4,
990,
429
G
rant
s
216
,282
815
,187
103
,195
-
6
6,10
6
427
,296
1,
628,
066
1,
772,
870
G
oods
and
ser
vice
s
636
,574
66
,032
35
,776
688
,977
8
4,13
7
1
,466
,801
2,
978,
297
3,
934,
791
In
tere
st
-
2
,442
2
,832
7
,010
-
7
,635
19
,919
25
,687
A
mor
tizat
ion
of ta
ngib
le c
apita
l ass
ets
69,
838
54,5
35
10,7
23
1
04,1
06
8,
812
5
47,8
33
795,
847
-
To
tal e
xpen
se
2
,084
,768
1
,094
,193
155
,848
868
,699
535
,635
5
,319
,983
10
,059
,126
10,7
23,7
77
Su
rplu
s (d
efic
it)
(491
,446
)$
16
8,69
8$
16
,809
$
20
5,60
8$
5,
955
$
92
3,66
3$
82
9,28
7$
12
8,00
2$
Str
ath
con
a R
egio
nal
Dis
tric
t
Co
nso
lidat
ed S
ched
ule
of
Seg
men
t D
iscl
osu
re b
y S
ervi
ce
Yea
r en
ded
Dec
emb
er 3
1, 2
013
Gen
eral
G
ove
rnm
ent
Pro
tect
ive
Tra
nsp
ort
a-ti
on
En
viro
nm
enta
l H
ealt
hD
evel
op
men
tR
ecre
atio
n
and
Cu
ltu
ral
Strathcona Regional District 2013 Annual Report and Financial Statements
Page 28
Sch
edu
le 2
2012
2012
Act
ual
Bud
get
(una
udite
d)(N
ote
20)
Rev
enu
eF
ront
age
and
parc
el ta
xes
$
-
$
- $
4
,751
$
13
,733
$
-
$
-
18,4
84$
18,4
53$
Gra
nts
in li
eu o
f tax
es
107
,966
5
,764
406
724
2,18
5
42
,619
15
9,66
4
83
,524
P
rope
rty
tax
requ
isiti
on
1
,034
,208
1
,103
,777
152
,778
235
,898
540
,906
4
,243
,443
7,
311,
010
7,
312,
012
G
over
nmen
t gra
nts
and
tran
sfer
s
646
,663
20
,835
-
10
,833
-
22
,413
70
0,74
4
73
0,08
4
S
ales
of s
ervi
ces
-
9,5
81
-
5
12,4
75
15
1,3
64,7
23
1,88
6,79
4
1,90
1,86
7
Oth
er r
even
ue fr
om o
wn
sour
ces
854
17,7
49
3
64
14,4
53
39,
721
21,6
19
94,7
60
96,3
68
Con
trib
utio
n fr
om o
ther
s
-
-
-
-
-
9
,816
9,
816
17
,667
In
tere
st e
arne
d
4
3,77
4
2
,174
1
,341
3
,729
45
2
35
,885
87
,355
10
,000
A
ctua
rial a
djus
tmen
t of d
eben
ture
deb
t
-
-
1
,280
1
,245
-
-
2,
525
-
To
tal r
even
ue
1,8
33,4
65
1,1
59,8
80
1
60,9
20
7
93,0
90
5
83,2
79
5,7
40,5
18
10,2
71,1
52
10
,169
,975
Exp
ense
Labo
ur a
nd b
enef
its
1
,057
,939
157
,429
3
,793
77
,211
322
,127
2
,900
,363
4,
518,
862
4,
889,
217
G
rant
s
485
,376
813
,415
98
,509
-
122
,522
404
,144
1,
923,
966
1,
730,
371
G
oods
and
ser
vice
s
503
,768
77
,692
33
,187
576
,603
2
1,68
7
1
,488
,719
2,
701,
656
3,
651,
567
In
tere
st
-
6
6
2
,832
7
,010
-
7
,906
17
,814
31
,002
A
mor
tizat
ion
of ta
ngib
le c
apita
l ass
ets
77,
393
48,0
21
10,7
24
1
04,1
05
3,
732
5
17,3
19
761,
294
-
To
tal e
xpen
se
2
,124
,476
1
,096
,623
149
,045
764
,929
470
,068
5
,318
,451
9,
923,
592
10
,302
,157
Su
rplu
s (d
efic
it)
(291
,011
)$
63
,257
$
11
,875
$
28
,161
$
11
3,21
1$
42
2,06
7$
34
7,56
0$
(1
32,1
82)
$
Str
ath
con
a R
egio
nal
Dis
tric
t
Co
nso
lidat
ed S
ched
ule
of
Seg
men
t D
iscl
osu
re b
y S
ervi
ce
Yea
r en
ded
Dec
emb
er 3
1, 2
012
Gen
eral
G
ove
rnm
ent
Pro
tect
ive
Tra
nsp
ort
a-ti
on
En
viro
nm
enta
l H
ealt
hD
evel
op
men
tR
ecre
atio
n
and
Cu
ltu
ral
Strathcona Regional District 2013 Annual Report and Financial Statements
Page 29
Sch
edu
le 3
Mac
hine
ryLa
ndB
uild
ings
Equ
ipm
ent
Cap
ital
and
and
Veh
icle
s an
dW
ater
S
ewer
Pro
ject
sIm
prov
emen
tsIm
prov
emen
tsF
ixtu
res
Infr
astr
uctu
reIn
fras
truc
ture
in P
rogr
ess
2013
2012
Co
stB
alan
ce, b
egin
nin
g
4,47
5,39
0$
15,4
18,3
59$
1,89
3,79
1$
4,09
9,02
3$
1,09
6,20
1$
51,2
32$
27
,033
,996
$
26
,934
,799
$
A
dd: Add
ition
s du
ring
year
-
990,
811
371,
308
-
-
294,
987
1,
657,
106
10
6,19
7
Le
ss:
Dis
posa
ls o
r w
rite
dow
ns-
-
(7
5,21
9)
-
-
-
(7
5,21
9)
(7,0
00)
C
ompl
eted
dur
ing
year
-
-
-
-
-
(5
1,23
2)
(51,
232)
-
Bal
ance
, en
din
g4,
475,
390
16
,409
,170
2,
189,
880
4,
099,
023
1,
096,
201
29
4,98
7
28,5
64,6
51$
27,0
33,9
96
Acc
um
ula
ted
am
ort
izat
ion
Bal
ance
, beg
inn
ing
43
5,47
2
7,
962,
359
1,
080,
414
2,
328,
212
43
5,01
7
-
12,2
41,4
74
11,4
87,1
80
Add
: A
mor
tizat
ion
for
the
year
41,6
48
472,
480
179,
150
81,9
80
20,5
89
-
79
5,84
7
76
1,29
4
Le
ss:
Acc
umul
ated
am
ortiz
atio
n on
dis
posa
ls-
-
(7
5,21
9)
-
-
-
(75,
219)
(7
,000
)
Bal
ance
, en
din
g47
7,12
0
8,
434,
839
1,
184,
345
2,
410,
192
45
5,60
6
-
12,9
62,1
02
12,2
41,4
74
Net
bo
ok
valu
e3,
998,
270
$
7,
974,
331
$
1,
005,
535
$
1,
688,
831
$
64
0,59
5$
29
4,98
7$
15
,602
,549
$
14,7
92,5
22$
Str
ath
con
a R
egio
nal
Dis
tric
t
Co
nso
lidat
ed S
ched
ule
of
Tan
gib
le C
apit
al A
sset
s
Yea
r en
ded
Dec
emb
er 3
1, 2
013
Strathcona Regional District 2013 Annual Report and Financial Statements
Page 30
Mat
uri
ty D
ate
Rat
e B
egin
nin
g
Bal
ance
N
et D
ebt
Issu
ed
Pri
nci
pal
P
aym
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Strathcona Regional District 2013 Annual Report and Financial Statements
Page 31
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Strathcona Regional District 2013 Annual Report and Financial Statements
Page 32
Supplementary Information
and
Information Pursuant to the
Financial Information Act
Strathcona Regional District 2013 Annual Report and Financial Statements
Page 33
Statement of Financial Information Approval
The information that follows includes schedules that have been prepared under the Financial Information
Act for the year ended December 31, 2013. This information was included with the 2013 Annual Report
and Financial Statements presented to and approved by the Strathcona Regional District Board at a
meeting held on May 22, 2014.
Approved in accordance with the requirements of Financial Information Regulation 371/93, Schedule 1,
Section 9,
Jim Abram Chair of the Board
Dawn Christenson, BAccS, CPA, CGA Chief Financial Officer
Strathcona Regional District 2013 Annual Report and Financial Statements
Page 34
Appropriated Surplus Reserves
Accumulated Surplus 2013 Total 2012 Total
Note a Note b Note c
General Government Services
Area A Grants in Aid -$ -$ 7,571$ 7,571$ 6,690$
Area B Grants in Aid - - 42 42 362
Area C Grants in Aid - - 16,927 16,927 151
Area D Grants in Aid - - 159 159 603
Electoral Areas Administration and Elections 33,072 - 41,576 74,648 114,082
Feasibility Studies - Electoral Areas - - 69,071 69,071 61,622
Feasibility Studies - Regional - - 37,237 37,237 50,095
General Administration 428,641 359,779 492,267 1,280,687 1,056,933
Member Municipality Administration 41,290 - 33,262 74,552 79,837
503,003 359,779 698,112 1,560,894 1,370,375
Protective Services
911 Emergency Answering 22,180 - 10,828 33,008 25,972
Area D Animal Control 50,521 - 14,347 64,868 60,354
Building Inspection 46,699 39,954 42,934 129,587 93,525
Campbell River Area D Fire Protection 69,220 - 23,764 92,984 86,413
Emergency Rescue Supplies Grants in Aid - - - - 1,847
Kyuquot/Nootka Emergency Program 2,252 - 2,364 4,616 5,108
Noise Control - - 4,664 4,664 5,025
North Quadra Assistance Response - 1,399 241 1,640 1,623
Sayward Valley Fire Protection 28,688 75,347 57,151 161,186 109,746
Soil Deposit and Removal Control 135 - 2 137 137
South Cortes Island Fire Protection 21,000 155,557 8,074 184,631 191,319
Strathcona Emergency Program 25,289 - 24,748 50,037 56,928
Unsightly Premises - 3,797 500 4,297 4,516
265,984 276,054 189,617 731,655 642,513
Transportation Services
Area C Street Lighting 485 - (1,234) (749) 345
Area D Street Lighting - - (234) (234) (877)
Area D Transit 15,000 - 19,281 34,281 32,159
Oyster River Bank Protection - 51,586 7,668 59,254 53,989
15,485 51,586 25,481 92,552 85,616
Environmental Health Services
Area D Water 9,460 308,297 189,358 507,115 346,232
Cortes Island Refuse Collection 32,132 - 6,964 39,096 32,914
Cortes Island Refuse Disposal 42,653 4,850 4,856 52,359 52,883
Craig Road Water - - 2,696 2,696 2,283
Kyuquot/Nootka Solid Waste Disposal 4,040 - 9,412 13,452 4,687
Liquid Waste Management Plan 28,180 - 17,116 45,296 39,225
Quathiaski Cove Sewer 20,981 18,286 13,506 52,773 16,936
Sayward Valley Refuse Collection 31,795 - 5,796 37,591 42,696
Sayward Valley Refuse Disposal - 11,733 5,528 17,261 16,487
Walters Cove Water 2,937 - (7,477) (4,540) (6,492)
172,178 343,166 247,755 763,099 547,851
Strathcona Regional District
Consolidated Summary of Surpluses and Reserves
As at December 31, 2013
(Unaudited)
Schedule i
Function
Strathcona Regional District 2013 Annual Report and Financial Statements
Page 35
Appropriated Surplus Reserves
Accumulated Surplus 2013 Total 2012 Total
Note a Note b Note cFunction
Development Services
Area A House Numbering - - 7 7 7
Area B House Numbering - - 1 1 1
Area C Economic Development 4,000 - 5,502 9,502 10,230
Area C House Numbering - - 5 5 4
Area D House Numbering - - 3 3 3
Kyuquot/Nootka Economic Development - - - - 97
Planning 77,051 10,478 146,753 234,282 282,799
Planning - Non-Part 26 - - 14,292 14,292 14,579
Sayward Valley Economic Development 18,191 - 200 18,391 15,325
99,242 10,478 166,763 276,483 323,045
Recreation and Cultural Services
Area B Community Parks 5,250 777,811 35,210 818,271 758,242
Area B Heritage Conservation - - 1,960 1,960 2,223
Area C Community Parks - 421,030 47,385 468,415 446,375
Area C Heritage Conservation - - 2,357 2,357 2,623
Area D Community Parks 5,357 975,770 36,942 1,018,069 1,019,888
Kyuquot Community Hall - - 284 284 568
Quadra Island Community Hall - 67,624 8,751 76,375 78,567
Sayward Valley Recreation and Community Hall 11,449 123,203 12,326 146,978 137,328
Strathcona Gardens Recreation Complex 275,054 417,464 248,151 940,669 1,121,198
Vancouver Island Regional Library - - 1,551 1,551 3,298
297,110 2,782,902 394,917 3,474,929 3,570,310 1,353,002$ 3,823,965$ 1,722,645$ 6,899,612$ 6,539,710$
Notes:a)
b)
c) Accumulated surpluses are the net result of operating activities and are automatically carried forward each year to offsetoperational expense or supplement revenue. A surplus occurs if projects are not completed by the end of the fiscal year, ifrevenue exceeds expectations, or when cost savings are realized. A deficit, indicated by a bracketed amount, occurs ifexpense exceeds expectations, or there is a revenue shortfall.
Appropriated surpluses are internally restricted funds accumulated through planned contributions identified in the financialplan, and may be used for emergencies, contingencies, requisition smoothing or any other designated purpose within thefunction. These amounts are not automatically carried forward to offset future operational expense or supplement revenue.
Reserves are established by bylaw or Provincial statute for specific purposes such as unforeseen future expenditures, capitalworks, machinery and equipment, and parkland acquisition. Use of reserves is identified in the financial plan as "transfersfrom reserves". Reserves may include externally restricted funds, such as endowments. Schedule ii Schedule of Changesin Reserve Fund Balances provides details about reserve fund changes in the current year.
Strathcona Regional District 2013 Annual Report and Financial Statements
Page 36
Reserve Type and FunctionBeginning Balance
Interest Earned
Transfers from (to)
Operating
Transfers from (to) Capital
Ending Balance
Capital works, machinery & equipment reservesArea B Community Parks 420,318$ 5,162$ 50,778$ -$ 476,258$ Area C Community Parks 132,026 1,500 26,674 - 160,200 Area C Community Parks - Evans Bay Port Facility 133,673 1,726 (9,068) - 126,331 Area D Community Parks 779,156 10,189 - (5,406) 783,939 Area D Water 102,156 1,145 25,000 - 128,301 Building Inspection 16,671 218 - - 16,889 Cortes Island Refuse Disposal 4,788 62 - - 4,850 General Administration 271,562 3,086 61,000 - 335,648 Oyster River Bank Protection 43,295 566 - - 43,861 Planning 1,018 243 5,000 - 6,261 Quathiaski Cove Sewer 184 2 18,100 - 18,286 Sayward Valley Fire Protection 50,340 493 24,514 - 75,347 Sayward Valley Recreation and Community Hall 52,749 691 - - 53,440 Sayward Valley Refuse Disposal 11,581 152 - - 11,733 South Cortes Island Fire Protection 87,460 991 22,915 - 111,366 Strathcona Gardens Recreation Complex 365,072 4,011 - (25,870) 343,213
2,472,049 30,237 224,913 (31,276) 2,695,923
Future expenditure reservesArea B Community Parks 62,035 811 - - 62,846 Area C Community Parks 27,154 355 - - 27,509 Area D Community Parks 179,289 2,345 10,000 - 191,634 Area D Water 177,672 2,324 - - 179,996 Building Inspection 22,770 295 - - 23,065 General Administration 23,820 311 - - 24,131 North Quadra Assistance Response 1,381 18 - - 1,399 Oyster River Bank Protection 7,634 91 - - 7,725 Planning 4,163 54 - - 4,217 Quadra Island Community Hall 66,751 873 - - 67,624 Sayward Valley Recreation and Community Hall 68,863 900 - - 69,763 South Cortes Island Fire Protection 41,172 519 2,500 - 44,191 Strathcona Gardens Recreation Complex 73,292 959 - - 74,251 Unsightly Premises 3,748 49 - - 3,797
759,744 9,904 12,500 - 782,148
Community parkland acquisition reservesArea B Community Parks 87,279 1,141 - - 88,420 Area C Community Parks 105,609 1,381 - - 106,990 Area D Community Parks 194 3 - - 197
193,082 2,525 - - 195,607
Endowments
Area B Community Parks-Hank's Beach Forest Conservation Park
149,985 4,296 (3,994) - 150,287
149,985 4,296 (3,994) - 150,287 3,574,860$ 46,962$ 233,419$ (31,276)$ 3,823,965$
Strathcona Regional District
As at December 31, 2013
(Unaudited)
Schedule of Changes in Reserve Fund Balances
Schedule ii
Strathcona Regional District 2013 Annual Report and Financial Statements
Page 37
Schedule iii
Service Requisition Limits(per $1,000 net taxable assessment,
unless otherwise stated)
General Government Administration
General Administration No stated limit
Grants in Aid – Areas A, B, C and D $0.10 limit on financial assistance grants
Electoral Areas Administration and Election Services No stated limit
Feasibility Study – Electoral Areas and Regional No stated limit
Member Municipalities Administration No stated limit
Protective Services
911 Emergency Answering $0.35
Area D Animal Control $0.323
Building Inspection No stated limit
Campbell River Area D Fire Protection No stated limit
Kyuquot/Nootka Emergency Program $6,000 or $0.25 per $1,000 net taxable assessment, whichever is greater
Noise Control $0.01
North Quadra Assistance Response $0.02
Sayward Valley Fire Protection $2.00
Soil Deposit and Removal Control $25,000 or an amount equal to the actual costs for the prior year, whichever is less
South Cortes Island Fire Protection $94,500 or $1.00 per $1,000 net taxable assessment, whichever is greater
Strathcona Emergency Program $0.03 per $1,000 net taxable assessment; minimum $1,000 per participating area
Unsightly Premises $25,000 or $0.002 per $1,000 net taxable assessment, whichever is greater
Transportation Services
Area C Street Lighting $7,880 total maximum
Area D Street Lighting $0.20
Area D Transit $0.20
Oyster River Bank Protection $18,000 total maximum
Strathcona Regional District
Schedule of Service Requisition Limits
As at December 31, 2013
(Unaudited)
Strathcona Regional District 2013 Annual Report and Financial Statements
Page 38
Service Requisition Limits(per $1,000 net taxable assessment,
unless otherwise stated)
Environmental Health Services
Area D Water $23,000 or $1.00 per $1,000 net taxable assessment, whichever is greater
Cortes Island Refuse Collection No stated limit
Cortes Island Refuse Disposal $0.50
Craig Road Water $36,000 total maximum
Kyuquot/Nootka Solid Waste Disposal $18,750 total maximum
Liquid Waste Management Plan $0.05
Quathiaski Cove Sewer $30,000 total maximum
Sayward Valley Refuse Collection $0.286
Sayward Valley Refuse Disposal $0.344
Walters Cove Water $2,750 total maximum
Development Services
Area A Economic Development $0.05
Area C Economic Development $0.278
House Numbering $0.0277
Planning No stated limit
Planning – Non-Part 26 No stated limit
Recreation and Cultural Services
Areas B and C Heritage Conservation $0.25
Areas B, C and D Community Parks $0.50
Kyuquot Community Hall $0.50
Quadra Island Community Hall $0.50
Sayward Valley Recreation and Community Hall $1.75
Strathcona Gardens Recreation Complex $1.588
Vancouver Island Regional Library No stated limit
Strathcona Regional District 2013 Annual Report and Financial Statements
Page 39
Schedule iv
Prepared pursuant to the Financial Information Regulation, Schedule 1, section 5
The Strathcona Regional District has not given any guarantees or indemnities under the Guarantees and IndemnitiesRegulation.
Strathcona Regional District
Schedule of Guarantee and Indemnity Agreements
As at December 31, 2013
(Unaudited)
Strathcona Regional District 2013 Annual Report and Financial Statements
Page 40
Schedule v
Name Position/Area Represented* Remuneration Expenses Total
Elected and Appointed Officials
Abram, J. Director, Electoral Area C, Board Chair 55,891$ 18,935$ 74,826$ Adams, A. Alternate Director, City of Campbell River 2,025 - 2,025 Anderson, C. Director, Village of Gold River 15,792 2,472 18,264 Anderson, N. Director, Electoral Area B 48,595 11,427 60,022 Grunerud, C. Commissioner, Strathcona Gardens Commission 1,125 - 1,125 Jakeway, W. Director, City of Campbell River 16,817 20 16,837 Kerr, R. Director, City of Campbell River 15,924 - 15,924 Leigh, B. Director, Electoral Area D 48,768 8,328 57,096 Lewis, E. Director, Village of Zeballos 52,306 13,274 65,580 MacDonald, J. Director, Village of Sayward 15,982 2,087 18,069 Mason, D. Alternate Director, Village of Sayward 330 150 480 Mennie, R. Alternate Director, City of Campbell River 750 - 750 Moglove, C. Director, City of Campbell River 13,567 - 13,567 Moore, M. Alternate Director, Electoral Area B 205 68 273 Samson, L. Director, City of Campbell River 15,192 - 15,192 Schooner, J. Director, Village of Tahsis 17,215 4,632 21,847 Storry, M. Director, City of Campbell River 13,817 - 13,817 Whalley, G. Director, Electoral Area A 50,078 6,338 56,416
384,379 67,731 452,110
EmployeesBienvenu, Y. Facility Services Manager, Strathcona Gardens 74,020 1,631 75,651 Bullock, S. Programs Manager, Strathcona Gardens 74,263 1,947 76,210 Christenson, D. Financial Services Manager 106,516 2,975 109,491 Hotsenpiller, R. Chief Administrative Officer 115,777 7,739 123,516 Parker, L. Operations Manager, Strathcona Gardens 79,533 1,616 81,149 Rees, E. Community Services Manager 102,000 1,354 103,354 Rohne, J. Facility Manager, Strathcona Gardens 86,756 1,370 88,126 Yates, T. Corporate Services Manager 118,209 2,099 120,308 Consolidated total of other employees with remuneration and expenses of $75,000 or less 2,894,469 47,990 2,942,459
3,651,543 68,721 3,720,264
ReconciliationTotal remuneration and expenses for elected officials and employees 4,035,922 136,452$ 4,172,374$
601,075
Total labour and benefits expense, per Financial Statements, Schedule 1 4,636,997$
*
Prepared pursuant to the Financial Information Regulation, Schedule 1, section 6(2), (3), (4), (5), and (6)
Reconciling items, including adjustments for accrual-basedaccounting, accruals for vacation, sick leave, post-employmentbenefits, and employer share of CPP and EI benefits
Strathcona Regional District
Schedule of Remuneration and Expenses
(Unaudited)
As at December 31, 2013
Remuneration and expenses reflect entire calendar year, whereas position/area represented reflect those in effect at the inaugural Board meeting on December 12, 2013
Strathcona Regional District 2013 Annual Report and Financial Statements
Page 41
Schedule vi
Prepared pursuant to the Financial Information Regulation, Schedule 1, subsection 6(8)
Strathcona Regional District
Statement of Severance Agreements
As at December 31, 2013
(Unaudited)
There were no severance agreements made between the Strathcona Regional District and its non-unionizedemployees during the year ended December 31, 2013.
Strathcona Regional District 2013 Annual Report and Financial Statements
Page 42
Schedule vii
Supplier Name Amount Paid
990 Cedar Ltd 94,582$ BC Hydro 247,057 Cimco Refrigeration 28,578 City of Campbell River 630,685 Comox Valley Regional District 107,443 D A Townley & Associates Ltd 292,132 DB Perks & Associates Ltd 45,138 FIRST Truck Centre Vancouver Inc 276,269 FortisBC-Natural Gas 253,149 Gary Moser Consulting Inc 25,723 Leduc Contracting 27,415 McElhanney Consulting Services Ltd 46,762 Minister of Finance 70,160 MNP LLP 37,485 Municipal Finance Authority of BC 1,631,701 Municipal Insurance Association of British Columbia 49,143 Municipal Pension Plan 510,527 PAW Pacific Audio Works 52,541 Quadra Island Recreation Society 144,007 Receiver General For Canada 1,024,808 Telus 36,093 United Steel Workers - Local 1-1937 31,549 Venture Pacific Construction Management 971,616 Verschuur Margaret 39,218 Waste Management of Canada Corporation 38,296 Willis Canada Vancouver 43,351 WorkSafeBC 51,914
6,807,342
Consolidated total of all grants and contributions exceeding $25,000 1,439,187
Consolidated total paid to suppliers who received aggregate payments of $25,000 or less 1,368,308
Total aggregate amount paid to suppliers 9,614,837
(4,988,555)
4,626,282$
Prepared pursuant to the Financial Information Regulation, Schedule 1, section 7 and the Financial Information Act, section 2
Schedule 1
Strathcona Regional District
Schedule of Payments to Suppliers
As at December 31, 2013
(Unaudited)
for items which are not considered expenses for financial statement purposes,including payments for employee payroll deductions, capital acquisitions, debtprincipal payments, and the non-rebatable portion of GST/HST
Reconciling items, including adjustments for accrual-based accounting, disbursements
Total expense for interest, grants, goods and services, per Financial Statements,
Strathcona Regional District 2013 Annual Report and Financial Statements
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Strathcona Regional District 2013 Annual Report and Financial Statements
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