City of Coquitlam Annual Report 2014

For the year ending December 31, 2014

City of Coquitlam

British Columbia

City of Coquitlam 2014 Annual Report

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On the cover: The locally renowned Coquitlam Crunch trail climbs to the top of Westwood Plateau on Eagle Mountain, gaining 250 metres in elevation in just over 2.2 kilometres – the equivalent of 81 storeys.

In 2014, the City improved the Coquitlam Crunch by adding over 400 timber stairs to the steepest section of the trail, making it easier and safer to walk back down.

For the year ending December 31, 2014

City of Coquitlam British Columbia

Auditors: KPMG LLP Bank: Scotiabank Prepared by: The Financial Services Department, in cooperation with the Corporate Planning and Corporate Communications divisions, of the City of Coquitlam

City of Coquitlam 2014 Annual Report

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Awards The City of Coquitlam received the Government Finance Officers Association (GFOA) Canadian Award for Financial Reporting (2013), Outstanding Achievement in Popular Annual Financial Reporting award (2013) and Distinguished Budget Presentation award (2014).

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City of Coquitlam 2014 Annual Report

Table of Contents Introductory Section Awards. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Coquitlam at a Glance. . . . . . . . . . . . . . . . . . . . . . . . . 4 Coquitlam City Council. . . . . . . . . . . . . . . . . . . . . . . . 5 Message from the Mayor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Organizational Structure . . . . . . . . . . . . . . . . . . . . . . 6 City Departments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Integrated Planning Framework. . . . . . . . . . . . . . . . 9 Strategic Planning. . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Performance by Strategic Goal. . . . . . . . . . . . . . . . 11 Strategic Goal 1: Strengthen Neighbourhoods. . . . . . . . . . . . . . . . . . . . . . . . . 12 Strategic Goal 2: Expand Local Jobs, Local Prosperity. . . . . . . . . . . . . . . . . . . 14 Strategic Goal 3: Increase Active Participation & Creativity. . . . . . . . . . . . . 16 Strategic Goal 4: Enhance Sustainability of City Services & Infrastructure. . . . . . . . . . . . . . . . . . . . . . . . 18 Strategic Goal 5: Achieve Excellence in City Governance . . . . . . . . . . . . . . . 20

Looking Forward – 2015 Business Plan . . . . . . . . 23

Financial Section

Statistical Section

Consolidated Financial Statements. . . . . . . . . . . . 25

Statistical Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . 95

Report From the City Treasurer . . . . . . . . . . . . . . . . . . . . . . . . . 26 Independent Auditors’ Report . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Consolidated Statement of Financial Position. . . . . . . . . . . 29 Consolidated Statement of Operations . . . . . . . . . . . . . . . . . 30 Consolidated Statement of Changes in Net Financial Assets. . . . . . . . . . . . . . . . . . . . . . 31 Consolidated Statement of Cash Flows . . . . . . . . . . . . . . . . . 32 Notes to Consolidated Financial Statements. . . . . . . . . . . . 33 General Fund – Statement of Financial Position Schedule A. . . . . . . . . . . 59 General Fund – Statement of Operations Schedule B. . . . . . . . . . . . . . . . . 60 Water Utility Fund – Statement of Financial Position Schedule C. . . . . . . . . . . 61 Water Utility Fund – Statement of Operations Schedule D. . . . . . . . . . . . . . . . . 62 Sewer and Drainage Utility Fund – Statement of Financial Position Schedule E. . . . . . . . . . . 63 Sewer and Drainage Utility Fund – Statement of Operations Schedule F . . . . . . . . . . . . . . . . . 64 Reserve Fund Balances Schedule G. . . . . . . . . . . . . . . . . . . . . . 65

Revenues by Source 2010–2014. . . . . . . . . . . . . . . . . . . . . . . 97 Expenses by Function 2010–2014 . . . . . . . . . . . . . . . . . . . . . . 98 Expenses by Object 2010–2014. . . . . . . . . . . . . . . . . . . . . . . . 99 Surplus for the Year 2010–2014 . . . . . . . . . . . . . . . . . . . . . . 100 Accumulated Operating Surplus for General, Water and Sewer & Drainage 2010–2014. . . . . . . . . . . . . . . . . . . . . 100 Accumulated Consolidated Surplus 2010–2014. . . . . . . 100 Annual Consolidated Surplus 2010–2014. . . . . . . . . . . . . 100 Summary of Statutory Reserve Funds 2010–2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101 Assessment & Taxation 2014. . . . . . . . . . . . . . . . . . . . . . . . . 101 Assessed Values for General Municipal Purposes 2010–2014 . . . . . . . . . . . 101 Property Tax Collection, Other Major Levies and Collections 2010–2014. . . . . . . . . . . . . . . . . . . . . . . . 101 Total Value of Building Permits 2010–2014 . . . . . . . . . . . 102 Building Permits and Total Tax Collection 2010–2014. . . . . . . . . . . . . . . . . . . . 102 Net Financial Assets 2010–2014. . . . . . . . . . . . . . . . . . . . . . 102 Net Book Value of Tangible Capital Assets 2010–2014 . . . . . . . . . . . . . . . . 103 Assets Acquisition by Category 2010–2014 . . . . . . . . . . . 103 Total Assets Acquisition 2010–2014. . . . . . . . . . . . . . . . . . 103 Coquitlam Debt Per Capita 2010–2014 . . . . . . . . . . . . . . . 104 Legal Debt Limit 2010–2014. . . . . . . . . . . . . . . . . . . . . . . . . . 104 Gross and Net Long-Term Debt 2010–2014 . . . . . . . . . . . 104 Population Estimate 2010–2014. . . . . . . . . . . . . . . . . . . . . . 104 Household Income in Coquitlam 2005 & 2011. . . . . . . . 105 Coquitlam’s Population by Age as a Percentage of Population 2006 & 2011. . . . . . . . . . . . . 105 Coquitlam Residents by Marital Status, 1996–2011 . . . 105 Top Ten Languages Spoken at Home in Coquitlam. . . . . 105 Comparison of the Average 2014 Annual Tax Bill for all City Services to Other Standard Household Costs. . . . . . . . . . . . . . . . 106 Principal Employers in Coquitlam. . . . . . . . . . . . . . . . . . . . . 106 Principal Corporate Taxpayers . . . . . . . . . . . . . . . . . . . . . . . . 107 Permissive Tax Exemptions. . . . . . . . . . . . . . . . . . . . . . . . . . . 108

Financial Statements of Coquitlam Public Library Board . . . . . . . . . . . . . . . 67 Independent Auditors’ Report . . . . . . . . . . . . . . . . . . . . . . . . . . 68 Statement of Financial Position. . . . . . . . . . . . . . . . . . . . . . . . . 69 Statement of Operations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 Statement of Changes in Net Financial Assets . . . . . . . . . . 71 Statement of Cash Flows. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 Notes to Financial Statements. . . . . . . . . . . . . . . . . . . . . . . . . . 73

Financial Statements of Coquitlam Optical Network Corporation (QNet). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 Independent Auditors’ Report . . . . . . . . . . . . . . . . . . . . . . . . . . 84 Statement of Financial Position. . . . . . . . . . . . . . . . . . . . . . . . . 85 Statement of Operations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86 Statement of Changes in Net Debt . . . . . . . . . . . . . . . . . . . . . 87 Statement of Cash Flows. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 Notes to Financial Statements. . . . . . . . . . . . . . . . . . . . . . . . . . 89

City of Coquitlam 2014 Annual Report

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Coquitlam at a Glance An active and vibrant community, Coquitlam is attracting new residents and businesses that appreciate its quality of life, central location in Metro Vancouver and countless opportunities for recreational, cultural and outdoor pursuits.

We’re the fifth-largest city in BC – home to over 141,000 people who rank among the highest in the province in terms of overall health and education levels.

141,132 2.4% 42% 40.3 $67,700 6,250 130 km² 954 ha 43 km 69 45,745 1,598 885 $565,200 4

City of Coquitlam 2014 Annual Report

Population (July 2014) Annual Population growth New Canadians (Top three countries: China, South Korea and Iran)

Median age Median income Business licences issued City area Municipal parkland Bike lanes City-supported festivals and events Total number of housing units Housing starts Total building permits issued MLS average selling price

Coquitlam City Council

Message from the Mayor The work of our City Council and staff is, ultimately, about people – the people who choose to live in Coquitlam, the businesses that establish themselves here and the students who are pursuing their education in our community.

Guided by our strategic goals, Council and City staff invest time and resources on initiatives that are enhancing the quality of life our residents and businesses know and expect. This means taking steps to ensure neighbourhoods offer a range of housing types, and adopting a holistic perspective in our planning processes so that we carefully consider all impacts on neighbourhoods as our city grows. We’re capitalizing on significant senior-government investments in infrastructure to make sure that people and goods can move easily – whether by foot, vehicles or transit – and fostering economic development by encouraging commercial development and promoting a business-friendly climate.

Thanks to the hard work of Council and staff – as well as the more than 140,000 citizens of Coquitlam who make this city their home – we’ve made consistent progress over the past year on a wide range of initiatives.

These include introducing a new solid waste collection system that is saving money while saving the planet, consulting with stakeholders on a housing affordability strategy, enhancing local tourism offerings, and improving public safety by hiring additional firefighters and RCMP officers. These and other initiatives speak to our achievements in delivering on the

Councillor Brent Asmundson

Councillor Craig Hodge

Councillor Dennis Marsden

Councillor Terry O’Neill

Councillor Mae Reid

Councillor Teri Towner

Councillor Chris Wilson

Councillor Bonita Zarrillo

priorities identified in our business planning process. You can read more about our results in the pages that follow.

The year ahead will see us undertake significant planning for some major events in 2016 – from the opening of the Evergreen Line to our 125th anniversary. The infrastructure investments underway will make it easier to get around, enhance our parks, and improve our sewer and drainage systems.

There’s a reason that 98% of Coquitlam residents rate their quality of life as good or very good – and we intend to continue working hard, every day, to maximize the economic, social and recreational opportunities available to them in Coquitlam.

Richard Stewart Mayor

ICMA Video

As one of the fastest-growing communities in the Lower Mainland, Coquitlam was profiled at the 2014 International City/County Management Association conference. Go to bit.ly/growingCoquitlam to learn more.

Coquitlam City Council includes the Mayor and eight Councillors who are elected for a four-year term.

Members of the current City Council were elected in November and took office on December 1, 2014.

City Council is responsible for local government leadership and decision-making – responsibilities that include establishing and carrying out the priorities of the City of Coquitlam and for overseeing the overall administration of civic business.

The Mayor and the Councillors also serve on many committees, boards and advisory groups on which they provide strategic input and direction on City initiatives, set budget priorities and advise on regional issues.

32 30 9 11 Regular Council Meetings

In-Committee Public Meetings Hearings

Advisory Committees held 55 Meetings

City of Coquitlam 2014 Annual Report

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Organizational Structure (as of December 31, 2014) CITY COUNCIL

Peter Steblin City Manager

CITY MANAGER’S OFFICE

John DuMont, Deputy City Manager

Jozsef Dioszeghy, General Manager

Raul Allueva, General Manager

James McIntyre, General Manager

Perry Staniscia, General Manager

Supt. Claude Wilcott, Officer in Charge

Wade Pierlot, Fire Chief

DEPUTY CITY MANAGER

ENGINEERING & PUBLIC WORKS

PARKS, RECREATION & CULTURE

PLANNING & DEVELOPMENT

STRATEGIC INITIATIVES

Jay Gilbert City Clerk

Sheena MacLeod, Director

RCMP COQUITLAM DETACHMENT

FIRE / RESCUE

Corporate Communications

Design & Construction

Community, Recreation & Culture Services

Building Permits – Approvals

Capital Construction

CITY CLERK’S OFFICE

Facilities

City Archives

FINANCIAL SERVICES

Lands & Properties

Elections

Strategic Projects

Information, Privacy and Administrative Services

Emergency Management

Corporate Planning

Fire Prevention

Economic Development

Operations Training

Information & Communications Technology Human Resources Legal & Bylaw Services

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City of Coquitlam 2014 Annual Report

Environmental Services Public Works Transportation Planning Utility Programs

Parks Planning & Business Services

Building Permits – Inspections Community Planning Development Services

Legislative Services

Budgeting Financial Accounting & Reporting Purchasing Revenue Services

City Departments City Manager’s Office

Deputy City Manager’s Office

Fire/Rescue

As Council’s primary staff liaison, the City Manager provides advice to Council and implements Council’s decisions. In municipal government, the City Manager is the Chief Administrative Officer and operates much like an executive officer in a corporation, overseeing the broad requirements of the organization.

The City Manager works with the Deputy City Manager and all City departments to deliver City services effectively and efficiently, and the City Manager’s Office also directly oversees the City Clerk’s Office and Financial Services.

The Deputy City Manager is responsible for many City divisions, including Corporate Communications, Corporate Planning, Economic Development, Fire/Rescue Services, Human Resources, Information and Communication Technology, and Legal and Bylaw Services.

Coquitlam Fire/Rescue provides emergency response to fires as well as medical emergencies, motor vehicle incidents, public assistance requests and animal rescues. The Department provides specialized and technical rescues and is also trained to fight fires at the wild-land urban interface and to respond to chemical, biological, radiation, nuclear and explosives incidents. Staff deliver emergency preparedness sessions as well as fire prevention and education programs, and they conduct inspections of multi-family residences and industrial, institutional and commercial buildings to ensure compliance to the Fire Code and related life-safety regulations.

City Clerk’s Office The City Clerk’s Office is the main communications link between City Council, staff and the community.

The Office prepares agendas and minutes for Council and Committee meetings; provides access to corporate records, including City bylaws; and runs local government elections. The City Clerk’s Office is also responsible for the City’s archives.

Financial Services Financial Services conducts longterm financial planning; develops the annual budget; calculates and collects property taxes and utilities; oversees investments; is responsible for purchasing requirements; and conducts all statutory financial reporting.

This Office is also responsible for strategic planning and business planning.

The Deputy City Manager is also the City liaison to the RCMP. If the City’s Emergency Operations Centre is activated, the Deputy City Manager is the EOC Director and is responsible for managing the City’s emergency response.

Planning and Development Engineering and Public Works The Engineering and Public Works Department plans, designs, constructs, operates and maintains the City’s infrastructure services.

This includes transportation infrastructure, solid waste management services, water distribution, flood control, storm water management and sewage collection.

The Planning and Development Department develops the land use plans and strategies to manage and guide Coquitlam’s growth and is responsible for processing applications for buildings and subdivisions, site preparation, land use changes and development proposals.

Parks, Recreation and Culture Services

Policing (RCMP – Coquitlam Detachment)

Parks, Recreation and Culture Services aims to create exceptional experiences for everyone in Coquitlam by creating parks, recreation and cultural experiences that are innovative, balanced and accessible to all – and that support healthy lifestyles and social connections.

Policing and community safetyrelated services are provided by the Coquitlam RCMP detachment, which is shared with Port Coquitlam, Anmore and Belcarra.

The Coquitlam RCMP team includes sworn police officers, civilian members of the RCMP, municipal staff and thousands of volunteers.

In addition to 24/7 patrol, responseto-calls and criminal investigations, detachment staff provide services such as special event policing, crime prevention programs, community outreach and education, and media relations.

Strategic Initiatives The Strategic Initiatives Department provides vision, leadership and strategic direction to the City’s land portfolio, facility and parks construction, facilities operations and management, and major external projects activities. This Department provides a centralized and coordinated approach to project management, overseeing the contributions of many City departments and divisions to large infrastructure construction and improvement projects.

The Coquitlam detachment is the third-largest RCMP detachment in Canada and the fifth-largest municipal police agency in Metro Vancouver.

City of Coquitlam 2014 Annual Report

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“The intent of the City’s planning process is to outline the City’s goals at a high level and communicate in a concise, coherent and simple way: what needs to be done, who is going to do it and what the results will be.”

– Peter Steblin, City Manager

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City of Coquitlam 2014 Annual Report

Integrated Planning Framework

Financial Plan

The Strategic Plan is the highest-level statement of the City’s aspirations for the future. It is developed with a long timeframe in mind and is updated every four years following the municipal election. The Strategic Plan articulates Coquitlam’s vision, mission, values and broad strategic goals. We monitor our progress on the plan through an annual review of key performance measures.

The Business Plan translates high-level strategic goals into priorities for action.

These priorities – and their associated work items – are established annually by Council. We monitor our progress on the business plan through reports to Council every four months, and through annual reviews of operational performance measures.

Finally, our Financial Plan outlines the financial resources we need to support the Strategic and Business plans. Updated annually, the Financial Plan is a five-year plan that includes a budget for revenues, expenditures and capital projects.

ncial Plan a n Fi

Business Plan

Provides the Five-Year Financial Plan, including budget for revenues, expenditures and capital projects

Identifies high-level activities for the organization that align with strategic goals and minimize enterprise risk

Bu s

Strategic Plan

Establishes the vision, mission, values and goals for the City of Coquitlam

Plan ess in

Coquitlam’s integrated planning framework is made up of three separate but complementary planning processes. These processes result in a set of integrated plans that support the overall vision and mission of the City, and they enable us to align activities and resources to achieve the strategic goals and annual business plan priorities set by Council.

Strate gic n Pla

Integrated planning is the foundation of everything we do. It’s a way of ensuring that our actions and initiatives are contributing to our big-picture vision of Coquitlam as a vibrant urban city where people choose to live, learn, work and play.

City of Coquitlam 2014 Annual Report

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Strategic Planning Coquitlam’s Strategic Plan guides the work of all City departments and staff. It outlines our shared goals and specifies the actions we need to take to reach those goals – ensuring that everything we do is helping to maintain Coquitlam’s high quality of life.

Coquitlam’s 2012-2015 Strategic Plan articulates a vision for the City and identifies five strategic goals that will help us achieve this vision: 1. Strengthen neighbourhoods 2. Expand local jobs, local prosperity 3. Increase active participation and creativity 4. Enhance sustainability of City services and infrastructure 5. Achieve excellence in City governance Each of these strategic goals is then linked to specific objectives and work plans, which allows us to conduct ongoing evaluations of our progress towards achieving the City’s vision for the community.

Vision

Values

Coquitlam in 2021 will be a community of neighbourhoods within a vibrant urban city where people choose to live, learn, work and play.

Organizational values form the foundation for the City’s decisionmaking framework and relationships with its stakeholders – employees, citizens and customers. The City of Coquitlam strives to be an organization recognized for its excellence in City governance and employee, citizen and customer relations by living its values:

Mission To sustain Coquitlam’s high quality of life for current and future generations, we serve the public interest through leadership, innovation and a focus on community priorities and strengths.

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City of Coquitlam 2014 Annual Report

hh Treat people fairly hh Build organizational and community capacity hh Inform, involve and inspire hh Innovate to sustain community quality of life

Performance by Strategic Goal How did we do in 2014? In the following pages, we review our five strategic goals, looking at what we set out to accomplish and what we actually achieved. We also include key performance indicators that provide concrete data to help us identify where we are on track and where we need to focus our efforts.

City of Coquitlam 2014 Annual Report

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Performance by Strategic Goal

Strategic Goal 1: Strengthen Neighbourhoods

Strategic Outcome: A community comprised of clean, safe, green and inclusive neighbourhoods that are connected to a convenient and affordable transportation network and vibrant commercial centres where residents can pursue education, recreation, sport and cultural interests that enhance their social well-being and strengthen their connection to each other and the community. Neighbourhoods that celebrate their uniqueness, history, heritage and character.

Key Performance Indicators

Crime Rate (Crimes per 1,000 people)1 Police Calls for Service Injury/Fatal Collisions Fire Incident Responses Bylaw Complaints Received Rental Vacancy Rate Housing (New Units Added) Apartments Townhouses Single Family Other Total Existing Supportive and Subsidized Housing Units 1

2010

2011

2012

2013

2014

61.8 39,417 288 5,838 3,641 2.7%

57.6 36,305 270 5,728 3,231 3.1%

55.7 36,604 362 6,245 3,689 3.4%

57.0 38,029 257 6,088 3,796 3.2%

N/A 1 37,419 346 6,128 4,720 2 3.1%

480 288 138 128 1,034 2,762

733 284 317 215 1,549 2,762

1,008 196 186 236 1,612 2,762

698 233 206 177 1,320 2,726 3

679 214 235 236 1,364 2,661 4

Crime Rate is calculated by the Minister of Public Safety and Solicitor General.

Data is from the 2013 Police Resources Report issued in December 2014. Crime rate is the number of Criminal Code offences (excluding drugs and traffic) reported for every 1,000 people.

2

Bylaw complaints increased due to a higher volume related to a change in the City’s solid waste collection services; solid waste collection complaints increased from 4 in 2013 to 624 in 2014.

In 2013, renovations at the L.J. Christmas Manor seniors’ facility created larger, but fewer units, resulting in a decreased total.

3

The total number of units of supportive and subsidized housing decreased due to demolition of Foyer Maillard for new facility construction, which temporarily decreased the1:number of seniors’ care Indicators housing units.

Strategic Goal Key Performance 4

Quality of Life 96%

99%

Change in Quality of Life 96%

98% 31% 22%

2010

2011

2012

2013

% Citizens rating quality of life as very good/good

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City of Coquitlam 2014 Annual Report

14%

2010

29% 13%

2011

28% 17%

2012

17%

2013

% Citizens say quality of life has improved % Citizens say quality of life has worsened

What We Set Out to Achieve

What We Achieved

Develop complete, well-connected neighbourhoods.

hh Completed and adopted the Maillardville Neighbourhood Plan.

Enhance travel within and between neighbourhoods by building high-quality transportation facilities and improving the quality of streets as a place for people.

hh Continued to work with the Province on the Evergreen Line, which is nearing completion in both the Burquitlam and Town Centre areas.

hh Started work on the Burquitlam/Lougheed Neighbourhood Plan.

hh Made progress on the functional planning, design and construction of northeast roads, such as Coast Meridian Road. hh Completed work on the City wayfinding plan.

Create a balanced system of facilities, parks and amenities to enhance connectivity and belonging within neighbourhoods.

hh Substantially completed construction of the Poirier Forum, which was officially opened on February 7, 2015. hh Completed upgrades at Cottonwood Park and the Coquitlam Crunch Trail. hh Completed design work for Leigh and Victoria parks. hh Substantially completed construction of Queenston Park.

Encourage a suitable mix of housing in our neighbourhoods.

hh Continued our work on the Draft Housing Affordability Strategy, focusing on research and stakeholder consultation in advance of a strategic framework. hh Developed a Neighbourhood Plan for Partington Creek that incorporates opportunities for a variety of housing types to support a socially diverse community.

Support the continued operations and refinement of the fire/safety, crime prevention and emergency response preparedness programs.

hh Substantially completed construction of the Burke Mountain Fire Hall.

Protect and enhance the unique history, heritage and character of our neighbourhoods.

hh Initiated the Arts, Culture and Heritage Plan to manage, preserve and inspire the unique history, heritage and character of neighbourhoods across Coquitlam.

hh Began developing fire response protocols for the introduction of the Evergreen Line in 2016.

hh Continued work on a policy framework for the City’s archives, including sourcing an archival management software system and working with the historical community.

Facilitate cultural and recreational experiences that foster interaction, connection and a sense of belonging within neighbourhoods and communities.

hh Prepared for the 2016 BC 55+ Games to be held in Coquitlam, which aim to improve the health, lifestyle and image of British Columbia’s 55+ population.

Collaborate with other organizations that support the physical and emotional health of our residents and enhance the overall social well-being of the community.

hh Simplified the Spirit Grant process to make it easier to process applications and ensure selected initiatives align with key City and community directions.

hh Began developing programs and plans for the Coquitlam 125 Anniversary Celebrations in 2016.

6,000 calls responded to annually by Coquitlam’s 158 full-time firefighters

$372,000 provided in Spirit Grants in 2014 to local nonprofits and community groups

2,000 acres of municipal green space and parks in Coquitlam

98% of residents say they have a good quality of life in Coquitlam, according to our IPSOS Reid Survey

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Performance by Strategic Goal

Strategic Goal 2: Expand Local Jobs, Local Prosperity Strategic Outcome: A prosperous, diverse and vibrant local economy.

Key Performance Indicators

2010

2011

2012

2013

2014

1,131

1,442

1,802

1,390

1,598

5,564

16,372

6,127

9,268

8,461

76

66

75

85

101

$51,236

$123,809

$53,296

$55,570

$75,859

64

71

81

66

69

Participants

88,060

93,357

130,015

122,806

125,100

QNet Fibre Utilization1

48,295

51,162

56,605

58,341

62,149

Housing Starts Additional Industrial & Commercial m2 Filming Permits Revenues Festivals & Events Number

1

Cumulative metres of fibre added per year.

Strategic Goal 2: Key Performance Indicators Business Licences Issued

Value of Construction Permits

$394

$378

$347

$352

$272

2010 $ in millions

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City of Coquitlam 2014 Annual Report

2011

2012

2013

2014

5,935 1,161

6,043 1,229

5,932 1,165

6,263 1,342

6,250 1,281

4,774

4,814

4,767

4,921

4,969

2010

2011

2012

57 2013

99 2014

Renewed

New

Inter-Municipal Business License

What We Set Out to Achieve

What We Achieved

Focus on neighbourhood commercial development and revitalization.

hh Initiated new commercial space in developments such as Onni Group’s Oasis (2,564 square metres), Bosa’s Evergreen (3,211 square metres), Beedie’s Austin Tower (372 square metres) and Cressey Development’s M3 (195 square metres).

Foster local employment opportunities by working with other agencies and groups to promote a business-friendly climate.

hh Partnered with the Tri-Cities Chamber of Commerce on Small Business Week, Social Media Mondays, a Business and Assessment Taxation Workshop, a Procurement Workshop and the Evergreen Line 2016 and Beyond seminar.

Support the retention, expansion and attraction of business to strengthen Coquitlam’s economic base.

hh Held 212 business retention and expansion meetings with local businesses and completed 346 requests for assistance. hh Held 103 business attraction meetings with various businesses, government agencies and consulates and received over 77 business attraction inquiries. hh Received 101 film permits with over $75,000 in filming revenues distributed to various City departments. hh Developed Coquitlam Business Connects communications material to provide information on business retention and expansion program services. hh Developed an online Coquitlam profile with BC Business magazine, including an overview, Q&A section and video of Coquitlam.

Support a vital economy by moving people and goods efficiently and capitalize on major transportation infrastructure.

hh Worked with New Westminster to identify solutions for the Bailey Bridge replacement.

Facilitate vibrancy in sport, culture and recreation to enhance economic growth through partnerships, events, festivals and business development.

hh Approved a three-year Tourism Program to build Coquitlam’s tourism capacity, raise the City’s tourism presence and help implement the Celebrate Coquitlam strategy.

Through a collaborative and holistic approach with citizens and businesses, create an inspiring public realm through public art and natural and designed spaces that enhance quality of life and encourage private-sector investment.

hh Through the Coquitlam Evergreen Line Public Art Task Force, provided advice and support to Council on the public art along the Evergreen Line.

Create trade and investment opportunities by building our international relationships and promoting our cultural diversity.

Leverage community assets to drive investment and job creation.

hh Met with New Zealand Trade and Enterprise and the United Korean Commerce and Industry Association, and attended the Consulate General of the Republic of Korea’s 2014 YuYang Dnu banquet. hh QNet expanded Wi-Fi and cellular networks in Coquitlam’s parks and facilities to enhance access and bandwidth.

hh Began working with the Province on potential options for improving the Brunette Interchange.

101 film permits issued, generating over $75,000 in revenues

885 building permit applications issued, with a total value of over $350 million

hh Worked with partners and participated in a variety of events that attracted visitors to Coquitlam, such as the BC Highland Games, Festival du Bois, MEC Century Ride, Pacific Spring Showcase Hockey Tournament and Play On! Vancouver Street Hockey Tournament.

hh Selected artists and work is under way with the Province and TransLink.

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Performance by Strategic Goal

Strategic Goal 3: Increase Active Participation & Creativity Strategic Outcome: A healthy community that includes the physical,

spiritual and social wellness of our residents and community.

Key Performance Indicators

2010

2011

2012

2013

2014

776,475

802,617

802,950

818,092

791,7512

14,399

14,457

14,593

15,444

11,7403

936

945

947

950

954

Evergreen Cultural Centre Patrons

75,656

77,200

79,800

78,000

81,450

Place des Arts Visitors

71,651

72,146

79,929

91,552

91,551

621,087

644,929

556,030 4

706,889

764,097

Admissions to CCAC & PSLC 1 Number of Low/No Cost Programs Parkland (hectares)

Library Visitors

CCAC is the City Centre Aquatic Complex; PSLC is the Poirier Sport & Leisure Complex. “Admissions” includes admission purchased for swimming, skating and fitness facilities.

1

2

The slightly decreased number of total admissions is due to the counter at the CCAC being non-functional due to repair in the fall of 2014.

3

The decrease in the number of registered low and no cost programs for 2014 reflects that the majority of low and no cost programs were moved from registered to drop-in programs, such as the Westminster Savings free swim and toonie skates.

4

The library’s annual visitors were lower in 2012 due to a one month closure of the City Centre Branch while it moved to its new location.

Strategic Goal 3: Key Performance Indicators Citizens Satisfaction (With recreation/culture opportunities)

Citizen Satisfaction (with Parks, trails, green space)

16

City of Coquitlam 2014 Annual Report

95%

94%

96%

97%

2010

2011

2012

2013

91%

91%

92%

93%

2010

2011

2012

2013

What We Set Out to Achieve

What We Achieved

Create a balanced offering of programs and services accessible to all ages, abilities, genders, interests, income levels and cultures.

hh Approved the draft Parks, Recreation and Culture Master Plan after ongoing public consultation. This plan: outlines the community’s values and aspirations for Coquitlam’s parks, recreation and culture, provides a baseline assessment of our service areas, and works to create a balance of programs and services in the short, medium and long term. hh Hosted the iStand Youth Summit at Pinetree Community Centre in collaboration with the Canadian Mental Health Association and School District 43; over 200 youth participated in the session, which focused on anti-stigma strategies for youth with mental illness.

Encourage all citizens to be active through a wide range of recreational activities in our facilities, parks and trails.

hh In partnership with Westminster Savings, provided 36 free swim and skate sessions that were attended by 9,225 individuals.

Enhance creativity and cultural experiences through programs, performances, multicultural events and festivals.

hh Supported 69 festivals and cultural events; Canada Day was the most popular, with an estimated attendance of 60,000.

Develop a sustainable system of parks and open space that contribute to the ecological, social and economic well-being of our community.

hh Reviewed the draft Mundy Park Forest Management Plan, which outlines a strategy to ensure the 400 acres of unfragmented second-growth forest, two lakes and streams are able to foster a healthy forest ecosystem.

hh Implemented a new One Pass fitness pass to provide universal access to the City’s facilities and drop-in fitness programs.

hh Hosted Neighbourhood Nights – free activities and entertainment at a variety of parks throughout the City – that were attended by over 1,000 Coquitlam residents.

hh Launched the Park Spark volunteer program; more than 900 residents have participated, volunteering over 715 hours alongside eight partner organizations. hh Planted 3,515 native shrubs and trees in City parks. hh Restored over 4,100 square metres of natural areas, with 325 volunteers participating in 18 weed-pulling/tree-planting events totalling over 810 volunteer hours.

Support a learning community where residents have access to lifelong learning through formal and informal opportunities.

hh Hosted HEROS training sessions, attended by over 1,110 Coquitlam residents, a 25% increase from the prior year to learn about emergency preparedness.

Develop transportation infrastructure and services to support a healthy environment.

hh Identified City priorities for the five-year Greenway and Bike Route Planning and Implementation.

hh Held school tour programs at the Inspiration Garden, attended by almost 500 preschoolers and grade three students.

9,225 people attended our free swim and skate programs

60,000 people came out to celebrate Canada Day

+1,000 people had a chance to meet their neighbours at our popular Neighbourhood Nights events last summer

3,515 of trees and shrubs planted in Coquitlam parks

hh Advanced plans for streetscape enhancement along the Evergreen Line and Pinetree Way.

City of Coquitlam 2014 Annual Report

17

Performance by Strategic Goal

Strategic Goal 4: Enhance Sustainability of City Services & Infrastructure Strategic Outcome: Greater capacity and better capability to deliver

high-quality services that are built on social, environmental and economically sustainable service models.

Key Performance Indicators

2010

2011

2012

2013

2014

$299,692

$317,208

$438,093

$341,200

$403,633

0.57

0.54

0.53

0.53

0.43

52.2%

54.9%

55.0%

54.5%

63.8%

Annual Tonnes CO2

476

529

875

1,301

1,464

Cumulative Tonnes CO2

953

1,482

2,357

3,658

5,122

Annual Water Consumption per Capita

150

140

140

149

150

Animals Reclaimed from Animal Shelter

369

305

378

339

375

Community Grants1 Solid Waste (Tonnes per Single Family Home) Garbage Diversion (% Recycled) Corporate GHG Reduction

1

Grants to sports, cultural and non-profit community organizations funded mainly by casino revenues.

Strategic Goal 4: Key Performance Indicators Taxpayer Confidence

Municipal Taxes per Capita (Total)

81%

81%

83%

88%

$849

$857

$907

$913

$895

2010

2011

2012

2013

2010

2011

2012

2013

2014

Citizens who believe they get good value for their taxes

18

City of Coquitlam 2014 Annual Report

What We Set Out to Achieve

What We Achieved

Explore service improvements through new opportunities for partnership with community organizations.

hh Revised our solid waste and recycling services and secured a new contract with BFI Canada and an agreement with Multi-Materials BC for blue box collections; this new contract saved residents 20% on utility fees. hh Undertook an inventory and analysis of potential sponsorship opportunities for civic facilities, programs and events with stakeholders and businesses as a way to enhance the sustainability of current services and facilities in partnership with others.

Set high standards and demonstrate responsible public stewardship through social, environmental and economic sustainability practices.

hh Implemented a new Stream and Drainage System Protection Bylaw to ensure responsible environmental development practices. hh Completed substantial work on the Parks Waste Management Strategy to ensure we are using the best practices and tools from around the region in our park waste management. hh Implemented and enhanced recycling programs at City Hall, Austin Works Yard, the Animal Shelter and three fire halls.

Create an energy-efficient community through conservation of environmental assets, resources and energy by increasing community and organizational awareness and stewardship.

hh Conducted presentations on waste reduction to residents, schools and community groups.

Minimize the impact of City processes and infrastructure on the environment by reducing the City’s air emissions, material consumption, energy and water usage.

hh Approved and constructed the City Centre District Energy Project, which uses the same Thermenex technology in use at the Poirier Sport and Leisure Complex.

Manage the City’s transportation system efficiently as the community evolves, and prioritize walking, cycling, transit and other sustainable modes of transportation.

hh Continued support for the School Walkability Program and Sidewalk Program to encourage citizens to adopt walking as an alternative to driving.

Ensure sustainable, equitable and effective funding strategies to enable the City to provide a highquality and appropriate level of infrastructure services.

hh Continued to partner with Westminster Savings Credit Union, which sponsors free public swim and skate programs for the community.

Support the continued viability and sustainability of community organizations in their implementation of services, events and programs to the community.

hh Improved the Spirit Grant process to ensure ease of processing and alignment with key City and community directions.

hh Delivered Urban Wildlife presentations to students across Coquitlam.

hh Analyzed the City’s electrical vehicle pilot program and made plans to establish an electrical vehicle charging station at City Hall in 2015 to increase use and visibility of the vehicle.

hh Partnered with TransLink’s TravelSmart program and conducted outreach to schools.

hh Analyzed potential sponsorship opportunities for Coquitlam’s facilities, programs and events.

63% of household waste was diverted from the landfill through green waste and recycling programs

20% average amount saved by property owners on their utility bill after the introduction of our new waste management program

20,000 households use our online ReCollect app to keep track of waste management pick-up days

525 km of sidewalks support walking as an alternative to driving City of Coquitlam 2014 Annual Report

19

Performance by Strategic Goal

Strategic Goal 5: Achieve Excellence in City Governance Strategic Outcome: A strong governance model that is based on the

principles of openness, fairness and accountability and that ensures informed decision-making throughout the organization and draws on the energies of citizen participation.

Key Performance Indicators

2010

2011

2012

2013

2014

38,590

51,284

52,945

47,723

49,923

-

111

112

121

123

7.3%

6.4%

4.1%

5.5%

5.3%

12.0%

9.9%

9.5%

10.9%

9.7%

Facebook Likes

735

1093

1,529

2,472

3,573

Twitter Followers

-

-

875

1,968

3,319

-

-

13

10

19

24

37

35

19

47 1

Parks, Recreation & Culture Volunteer Hours Committee Volunteers Employee Vacancy Rate (at Dec 31) Employee Annual Turnover Social Media Contact

Public Open House Meetings Business Improvements Initiatives Completed

The Business Improvements initiatives included both the work plan for the Business Improvements and Customer Service Committee and the Stop Doing List.

1

Strategic Goal 5: Key Performance Indicators Citizens Satisfied with City Services 95%

2010

96%

2011

94%

2012

(% Very/Somewhat Satisfied)

20

City of Coquitlam 2014 Annual Report

97%

2013

Customer Service Contact 85%

2010

76%

76%

2011

2012

(% Very/Somewhat Satisfied)

89%

2013

What We Set Out to Achieve

What We Achieved

Maintain prudent financial management policies regarding land management, asset replacement and long-range planning and budgeting so that taxpayers remain confident that tax dollars are being spent wisely.

hh Approved the draft Parks, Recreation and Culture Master Plan after ongoing public consultation. The Plan encompasses an arena services study, park and aquatic infrastructure assessments and an Art, Culture and Heritage Strategic Plan.

Develop strategic partnerships and positive working relationships with the businesses, community groups and many government organizations who work with, for and in Coquitlam.

hh Continued to work with the YMCA to develop an agreement to build and operate a community centre in the Burquitlam-Lougheed area.

hh Awarded a new solid waste collection contract to BFI Canada Inc. that uses an automated collection system, which resulted in an estimated net savings of $2.3 million per year (including savings through recycling by Multi-Materials BC).

hh Engaged in discussions with School District 43 to develop joint agreements for the use of school facilities and amenities. hh Participated in the Tri-Cities Transportation Task Force to provide a united voice for transportation improvements in the northeast sector of Metro Vancouver.

Support, encourage and empower employees by living the City’s values, recognizing success and fostering a positive team environment.

hh Numerous employee teams continued to lead initiatives such as Carbon Cutters and Team GoFitlam, and the Business Improvements and Customer Service Committee continued to seek ways to improve City business processes. hh Offered training programs to staff, including skills for supervisors, human resources training, computer upgrade training, and training for specific workgroups on business writing, teambuilding and communication. hh Launched a leadership development program.

Encourage citizen and neighbourhood engagement so that residents contribute to the affairs of the whole community.

hh Attracted 123 residents and organization representatives to volunteer on the City’s 15 advisory committees and boards in 2014 to provide input and advice on a wide range of City programs and policies.

123 residents and organizations volunteered on the City’s 15 advisory committees and boards

97% of Coquitlam residents are satisfied with the overall level and quality of City services, according to our Ipsos Reid survey

hh Held our annual Welcome to Coquitlam event, attended by over 700 people, with 60 volunteers providing information on all aspects of Coquitlam to the city’s new residents.

Improve customer service and enhance efficiency and effectiveness through innovation, high customer service standards and a commitment to continuous improvement.

hh The Business Improvements and Customer Service Committee added the Stop Doing List to its mandate – and created efficiencies and service enhancements by addressing 16 items from the Business Improvements work plan and identifying 31 items for the Stop Doing List. hh Implemented a One Pass program for the City’s recreational facilities to make it easier for residents to participate in activities at any of the City’s community facilities.

Foster awareness of diverse cultural groups and encourage increased understanding of different cultures to further enrich the community.

hh Held a staff workshop on strategies to engage, connect and communicate with people from many different cultures during multicultural week; staff from all City departments attended to foster awareness and enhance customer service.

City of Coquitlam 2014 Annual Report

21

22

City of Coquitlam 2014 Annual Report

Looking Forward – 2015 Business Plan What are our priorities for the year ahead?

Our 2015 Business Plan is where we make the connection between strategy and action. Using our Strategic Plan as a guide, we develop the priorities that will be initiated and/or completed in the year ahead.

The annual Business Plan priorities help Council and staff allocate resources on the most important City priorities each year.

Strategic Goal 1:

Strategic Goal 2:

Strategic Goal 3:

Strategic Goal 4:

Strategic Goal 5:

Strengthen Neighbourhoods

Expand Local Jobs, Local Prosperity

Increase Active Participation & Creativity

Enhance Sustainability of City Services & Infrastructure

Achieve Excellence in City Governance

hh Plan for the Coquitlam 125 Anniversary Celebration

hh Update the City’s Industrial Zones

hh Conduct planning and design activities for Rochester Park

hh Work with key stakeholders on the future of the Riverview Lands

hh Conduct visioning for the Partington Creek Village Centre

hh Begin construction of the Pinetree Way Corridor

hh Implement the Mundy Park Forest Management Plan

hh Upgrade the City Centre Sanitary System Capacity

hh Continue with consultation and work on the Parks, Recreation and Cultural Master Plan

hh Continue work on the Middle School Walk/Bike Accessibility Program

hh Implement an enhanced Tourism Program

hh Conduct planning and design activities for Smiling Creek Park and joint park/school site plan

hh Review corporate energy goals

hh Conduct consultation and planning for a Town Centre Festival Site hh Update the Burquitlam/ Lougheed Neighbourhood Plan hh Implement the RCMP Strategic Plan

hh Expand Wi-Fi and cellular networks across the City hh Establish an Economic Development Advisory Committee hh Conduct functional planning for the Lougheed Highway Riverview Section

hh Make improvements to the Blue Mountain Spray Pad Park hh Review the artificial turf user fee and policy for recreation facilities hh Conduct planning and design activities for Leigh and Victoria parks

hh Conduct ongoing work to establish a YMCA facility in Coquitlam

hh Continue implementing business improvements, customer service work plan and Stop Doing List hh Initiate an Electronic Plans Management program

hh Implement a new parks waste management strategy hh Coordinate with stakeholders on the City’s strategic interests in Northeast Coquitlam

hh Conduct public consultation and develop a housing affordability strategy hh Review the Community Amenity Contribution and bonus density policies for the City hh Conduct consultation for the Large Homes review

The list above highlights some of the initiatives planned for 2015 in consideration of the following criteria: considerable budget impact; human resource effort; significant Council or community interest; dependence on external partners; and mandatory or legislated requirements. The City of Coquitlam’s complete 2015 Business Plan is available online at www.coquitlam.ca/businessplan.

City of Coquitlam 2014 Annual Report

23

For the year ending December 31, 2014

City of Coquitlam British Columbia

Consolidated Financial Statements Auditors: KPMG LLP Bank: Scotiabank Prepared by: The Financial Services Department of the City of Coquitlam

City of Coquitlam 2014 Annual Report

25

Report from the City Treasurer May 25, 2015

Your Worship and Members of Council:

Mayor and Council City of Coquitlam

I am pleased to present the Annual Report for the fiscal year ending December 31, 2014. The purpose of this report is to publish the Consolidated Financial Statements and Auditors’ Report for the City of Coquitlam pursuant to Section 167 of the Community Charter. The preparation and presentation of the financial statements and related information in the 2014 Annual Report is the responsibility of the Financial Services Department of the City. These statements have been prepared in accordance with generally accepted accounting principles and the recommendations of the Public Sector Accounting Board of the Institute of Chartered Accountants and the Provincial Ministry of Community, Sport and Cultural Development. The City maintains a system of internal accounting controls designed to safeguard the assets of the corporation and provide reliable financial information.

The audit firm of KPMG LLP was appointed by Council and is responsible for expressing an opinion as to whether the Consolidated Financial Statements, prepared by management, fairly present the financial position of the City of Coquitlam and the results of its 2014 operations. The 2014 Audited Financial Statements were presented to and approved by the Finance Committee of Council, which acts as the City’s Audit Committee.

Financial Overview 2014 Operating Results The Consolidated Financial Statements presented include the 2014 results for the City’s General Fund, Utility Fund, Trust and Reserve Funds, as well as the Coquitlam Public Library and QNet. From a financial perspective, the 2014 results are positive, resulting in a surplus on a consolidated basis. It is a credit to Council and staff for working diligently on hundreds of activities and projects throughout the year to provide quality services and a positive bottom line. This is evident in our annual survey, which indicates that 88% of Coquitlam taxpayers believe they receive good value for their tax dollars.

26

City of Coquitlam 2014 Annual Report

During the year, the City’s tangible capital assets increased by $55 million from $1.72 billion to $1.77 billion. The City’s debt decreased from $34 million to $25 million, as a result of $9 million in debt payments during the year. The City’s cash position at yearend remained steady at $321 million. Consolidated revenues for the year totalled $277 million, which, combined with additional funding from City Reserves, covered operating costs of $210 million and capital additions of $93 million.

General Fund The City’s General Fund is the primary fund for most municipal services, including Police, Fire, Parks and Recreation, Engineering and Public Works and Planning. The City’s General Operating Fund ended the year with a surplus of $5 million, primarily as a result of expenditure savings for policing and growth in tax and investment revenues. Another mild winter enabled the City to contribute approximately $700,000 of unused Snow and Ice funding to reserves, as directed by Council policy. I am pleased to report the City’s Snow and Ice Reserve is fully funded, enabling any further weather-related savings to be directed toward the shortfall in our Vehicle Replacement Reserve.

General Fund revenues for the year totalled $212 million, which covered operating costs of $161 million and net capital additions of approximately $48 million. The key projects for the year included approximately $16 million in land acquisition in Northeast Coquitlam, $6.2 million to the Burke Mountain Fire Hall, $4.2 million on waste bins to support the City’s new waste collection contract and $3 million on the City-Centre Thermenex Project.

Utilities The City operates two major utilities that are funded by user fees.

The Sewer and Drainage Utility includes over 400 kilometres of pipes for the collection and transmission of sewage to the Greater Vancouver Sewerage and Drainage District’s (GVS&DD) Annacis Island Treatment Plant, as well as over 500 kilometres of drainage pipes and facilities to provide environmental and flood

protection throughout the City. During 2014, the Utility collected and conveyed sewage and run-off water from approximately 40,000 households and commercial customers.

The Sewer and Drainage Utility Fund ended the year with a planned operating surplus of $1 million. During 2014, sewer and drainage revenues of $34 million supported operations at a cost of $26 million and net capital additions of $4 million. The largest project of the year was the upgrade of the City Centre Pump Station.

The Water Utility also uses over 400 kilometres of pipes to deliver water purchased from the Greater Vancouver Water District (GVWD). During 2014, the utility also provided water to approximately 40,000 households and commercial customers.

Trusts and Reserves The City holds a number of trust funds that represent monies on deposit for particular purposes. During 2014, the trust fund balances decreased from $21 million to $20 million. The City also has a number of reserve funds, including the Land Sale Reserve, the Vehicle Replacement Reserve and Development Cost Charges. During 2014, the City’s Reserve Fund balances remained constant at $193 million. These funds will support the City’s Capital Program and fund growthrelated infrastructure projects necessitated by increased development and resulting population growth in the community.

Debt

The Water Utility Fund ended the year with a planned operating surplus of $1.9 million. During 2014, water revenues of $29 million funded water operations at a cost of $23 million, net capital additions of $4 million and saving for future asset replacement. The largest projects of the year included the construction of the Harper Reservoir at a cost of $800,000, as well as a number of water main replacements.

Outstanding long-term debt at the end of 2014 was $25 million, or approximately $192 per capita, which is a decrease over 2013. During 2014, the City repaid the majority of the short-term borrowing used to advance the completion of the new City Centre Library, which will be fully retired in early 2015. The City continues to use the short-term borrowing offered by the Municipal Finance Authourity, at very favourable rates, to advance capital projects, including the New Burke Mountain Fire Hall in Northeast Coquitlam.

Investment Portfolio

Financial Sustainability

It is the policy of the City of Coquitlam to invest City funds in a manner that will provide the optimal blend of investment security and return while meeting the daily cash flow demands of the City government and complying with the statutory requirements of the Community Charter. Investment income decreased in 2014, from $5.8 million to $5.1 million because 2013 investment earnings were inflated by a one-time sinking fund payout that did not reoccur in 2014. The average balance invested by the City of Coquitlam during the year was $345 million, with an average rate of return of 1.54%.

The following improvements in the City’s Balance Sheet are the result of a number of long-range financial policies adopted by City Council aimed at ensuring the sustainability of City infrastructure:

hh Revenue received through the Casino Host Agreement was contributed to a Casino Reserve allocated as follows: ÐÐ $805,000 was received to fund Community Capital Projects, of which $465,000 was issued in grants to community organizations and funds to support community events during the year, and $300,000 was allocated to support Local Area Services. ÐÐ $5.6 million was received to fund Municipal Capital Projects. All of the Municipal Capital Funds received to date have been allocated to fund priority infrastructure projects in the City’s five-year Capital Program. hh Savings totalling $2.3 million achieved as a result of debt retirement from prior years have been used to support the City’s annual contribution to growthrelated projects in the capital program.

These Council policies are a very positive step in ensuring the long-term financial sustainability of City infrastructure.

Respectfully submitted,

Sheena MacLeod, C.P.A. GM Financial Services

hh The City of Coquitlam’s cash surplus (Note 10) increased from $38 million in 2013 to $41 million in 2014, as a result of RCMP and utility cost savings, as well as increased assessment and interest revenues.

The surplus of $41 million is held for the purpose of maintaining an appropriate balance to provide working capital, interest earnings and an emergency fund.

City of Coquitlam 2014 Annual Report

27

Independent Auditors’ Report To the Mayor and Council of the City of Coquitlam We have audited the accompanying consolidated financial statements of the City of Coquitlam, which comprise the consolidated statement of financial position as at December 31, 2014, the consolidated statements of operations, changes in net financial assets and cash flows for the year then ended, and notes, comprising 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 our 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, we consider 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

28

City of Coquitlam 2014 Annual Report

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 consolidated financial position of the City of Coquitlam as at December 31, 2014 and its consolidated results of operations, its changes in net consolidated financial assets and its consolidated cash flows for the year then ended in accordance with Canadian public sector accounting standards.

Other Matters Our audit was made for the purpose of forming an opinion on the consolidated financial statements taken as a whole. The current year’s supplementary information included in Schedules A through G is presented for purposes of additional analysis and is not a required part of the financial statements. Such supplementary information has been subjected to the auditing procedures applied in the audit of the consolidated financial statements and, in our opinion, is fairly stated in all material respects in relation to the consolidated financial statements taken as a whole.

Chartered Accountants April 13, 2015 Burnaby, Canada

Consolidated Statement of Financial Position December 31, 2014, with comparative figures for 2013

2014 2013 Financial Assets Cash (note 3)

$

72,251,265 $

14,664,503

Temporary investments (note 3)

249,259,353

306,851,907

Accounts receivable (note 4)

32,117,014

33,288,085

Land held for resale (note 9)

-

1,231,086

353,627,632 356,035,581 Liabilities Accounts payable and accrued liabilities (note 5) Deferred revenue (note 6) Deposits (note 7) Long-term liabilities (note 8)

45,767,301 53,875,325 20,790,942 25,255,721

51,028,882 51,944,817 21,823,750 34,491,499

145,689,289 159,288,948

Net financial assets

207,938,343

196,746,633

Non-Financial Assets Inventories of supplies 703,507 712,746 Prepaid expenses 636,125 641,978 Tangible capital assets (note 9) 1,773,860,175 1,718,333,408

1,775,199,807 1,719,688,132

Accumulated surplus (note 10)

$ 1,983,138,150 $ 1,916,434,765

Commitments and contingencies (note 15) See accompanying notes to consolidated financial statements

____________________________________________ City Treasurer

City of Coquitlam 2014 Annual Report

29

Consolidated Statement of Operations Year ended December 31, 2014, with comparative figures for 2013

2014 budget

2014

2013

(notes 2(a) and 19) Revenue:

Taxation (note 11) $ 138,670,404 $ 140,092,846 $ 133,104,670

Fees, rates and service charges 66,623,829 69,060,029 80,056,487

Grants and grants in lieu (note 12) 10,010,965 9,286,386 8,778,184

Investment income 4,028,502 5,129,766 5,858,896

Casino revenue 7,200,000 6,442,834 6,730,968

Municipal land sales - 15,409,337 1,265,221

Developer’s contribution (note 9(b)) - 22,351,791 36,209,937

Cost recoveries 4,931,524 6,889,537 6,869,307

Penalties and interest on taxes 975,500 1,167,074 1,111,029 Other 84,524 1,115,650 2,517,232 232,525,248 276,945,250 282,501,931 Expenses:

General government

Police protection

Fire protection

Other protection Engineering

Solid waste

Planning and development

Parks, recreation and culture

Water utility

Sanitary and drainage utility

17,748,855 31,986,795 24,995,605 2,699,718 29,083,270 7,583,322 7,074,832 46,042,490 21,203,035 26,570,828

16,517,296 29,544,844 24,445,365 2,395,360 28,443,480 7,648,424 6,604,996 46,852,652 21,582,708 26,206,740

16,143,203 29,429,031 22,421,742 2,416,078 28,317,525 8,891,970 6,476,006 45,767,039 21,446,766 26,120,451

214,988,750 210,241,865 207,429,811 Annual surplus Accumulated surplus, beginning of year Accumulated surplus, end of year See accompanying notes to consolidated financial statements.

30

City of Coquitlam 2014 Annual Report

17,536,498

66,703,385

75,072,120

1,916,434,765 1,916,434,765 1,841,362,645

$ 1,933,971,263

$ 1,983,138,150 $ 1,916,434,765

Consolidated Statement of Changes in Net Financial Assets Year ended December 31, 2014, with comparative figures for 2013

2014 budget

2014

2013

66,703,385 $

75,072,120

(notes 2(a) and 19) Surplus for the year

$

Reclassification of land held for sale Acquisition of tangible capital assets in

cash and financed by capital lease Contributed tangible capital assets from developers Amortization of tangible capital assets Loss (gain) on disposal of tangible capital assets Proceeds on sale of tangible capital assets

17,536,498

$

-

-

1,231,086

(73,093,880)

(71,126,196)

(46,446,749)

(22,351,791) 35,285,437 (14,025,342) 16,691,125

(36,209,937) 33,592,911 1,385,238 1,323,038

- 32,500,000 - -

(23,057,382) 11,176,618 29,947,707 Acquisition of inventories of supplies Acquisition of prepaid expenses Consumption of inventories of supplies Use of prepaid expenses

- - - -

(703,507) (636,125) 712,746 641,978

-

(712,746) (641,978) 682,510 797,259

15,092

125,045

Change in net financial assets

(23,057,382)

11,191,710

30,072,752

Net financial assets, beginning of year

196,746,633

196,746,633

166,673,881

Net financial assets, end of year

173,689,251

207,938,343 $ 196,746,633

$

$

See accompanying notes to consolidated financial statements.

City of Coquitlam 2014 Annual Report

31

Consolidated Statement of Cash Flows Year ended December 31, 2014, with comparative figures for 2013

2014

2013

Cash provided by (used in): Operating activities:

Annual surplus $ 66,703,385 $ 75,072,120

Items not involving cash: Amortization 35,285,437 33,592,911

Loss (gain) on disposal of tangible capital assets (14,025,342) 1,385,238

Developer contributions of tangible capital assets (22,351,791) (36,209,937)

Change in non-cash operating working capital:

Decrease in accounts receivable 1,171,071 3,979,954

Decrease in land held for sale 1,231,086

Decrease in prepaid expenses 5,853 155,281

Decrease (increase) in inventories of supplies 9,239 (30,236)

Increase (decrease) in accounts payable

and accrued liabilities (5,234,798) 5,868,958

Increase in deferred revenue 1,930,508 7,584,139 Increase (decrease) in deposits (1,032,808) 1,458,395

Net change in cash from operating activities

63,691,840

92,856,823

Capital activities:

Cash used to acquire tangible capital assets

Proceeds on disposal of tangible capital assets

(71,126,196) 16,691,125

(46,420,847) 1,323,038

Net change in cash from capital activities

(54,435,071)

(45,097,809)

Financing activities:

Issuance of long-term debt

Repayment of long-term debt

Principal payments on tangible capital lease obligations

- (9,235,778) (26,783)

17,874,000 (10,204,588) (24,736)

Net change in cash from financing activities

(9,262,561)

7,644,676

Investing activities:

Change in temporary investments

57,592,554

(161,770,088)

Net change in cash Cash, beginning of year

57,586,762 14,664,503

Cash, end of year

Supplementary information: Non-cash transactions:

Tangible capital assets financed by capital lease See accompanying notes to consolidated financial statements.

32

City of Coquitlam 2014 Annual Report

(106,366,398) 121,030,901

$

72,251,265 $

14,664,503

$

- $

25,902

Notes to Consolidated Financial Statements Year ended December 31, 2014 1. Operations: The City of 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 services include administrative, protective, transportation, environmental, recreational, water and sewer.

2. Significant accounting policies: These consolidated financial statements are prepared in accordance with generally accepted accounting principles for local governments as recommended by the Public Sector Accounting Board (“PSAB”) of the Chartered Professional Accountants Canada. (a) Basis of consolidation: The consolidated financial statements are comprised of the City’s Operating, Capital and Reserve Funds consolidated with the Coquitlam Public Library (the “Library”) and the Coquitlam Optical Network Corporation (“QNet”). The Library financial statements are consolidated with the City’s, as the Library Board is appointed by the City and 90% of the Library’s funding comes from the City. QNet is consolidated as it is a wholly owned municipal corporation.

Interfund transactions, fund balances and activities have been eliminated on consolidation.

Budget reporting: The budget information reported in the consolidated statement of operations represents the 2014 component of the Financial Plan Bylaw adopted by City Council on December 9, 2013.

Operating funds: These funds include the General, Water Utility and Sewer and Drainage Utility Operating Funds as well as the Library and QNet. They are used to record the operating costs of the services provided by the City.

Capital funds: These funds include the General, Water Utility and Sewer and Drainage Utility Capital Funds. They are used to record the acquisition costs of tangible capital assets and any related long-term debt outstanding.

Reserve funds: Under the Community Charter, City Council may, by bylaw, establish reserve funds for specified purposes. Money in a reserve fund, and interest earned thereon, must be expended by bylaw only for the purpose for which the fund was established. If the amount in a reserve fund is greater than required, City Council may, by bylaw, transfer all or part of the amount to another reserve fund.

Trust funds: These funds account for assets that must be administered as directed by agreement or statute for certain beneficiaries. In accordance with PSAB recommendations on financial statement presentation for local governments, trust funds are not included in the City’s consolidated financial statements. Trust funds administered by the City are presented in note 16.

City of Coquitlam 2014 Annual Report

33

Notes to Consolidated Financial Statements (continued) Year ended December 31, 2014 2. Significant accounting policies (continued): (b) Basis of accounting: The City follows the accrual method of accounting for revenues and expenses. Revenues are normally recognized in the year in which they are earned and measurable. Expenses are recognized as they are incurred and measurable as a result of receipt of goods and services and/or the creation of a legal obligation to pay. (c) Temporary investments: Temporary investments are recorded at cost, which approximates market value, and are comprised of money market investments and bonds. (d) Land held for resale: Land held for resale includes properties that are ready and available to be sold and for which there is a market. They are valued at the lower of cost or expected net realizable value. (e) Deferred revenue: The City defers a portion of the revenue collected from permits, licences and other fees and recognizes this revenue in the year in which related inspections are performed or other related expenditures are incurred.

Development cost charges, collected to pay for capital costs due to development, are recorded as deferred revenue upon receipt. Development cost charges are recognized as revenue when the related development capital costs are incurred. (f) Deposits: Receipts restricted by the legislation of senior governments or by agreement with external parties are deferred and reported as deposits and are refundable under certain circumstances. When qualifying expenditures are incurred, deposits are recognized as revenue at amounts equal to the qualifying expenditures. (g) Long-term debt: Long-term debt is recorded net of related sinking fund balances. (h) Government transfers: Restricted 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.

34

City of Coquitlam 2014 Annual Report

Notes to Consolidated Financial Statements (continued) Year ended December 31, 2014 2. Significant accounting policies (continued): (i) Non-financial assets: Non-financial 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. (i) Tangible capital assets: Tangible capital assets have useful lives extending beyond the current year. They are recorded at cost, which includes amounts that are directly attributable to acquisition, construction, development or betterment of the asset. The cost, less residual value, of the tangible capital assets, excluding land and landfill sites, is amortized on a straight-line basis over their estimated useful lives as follows:

Asset

Information technology Park structures Buildings and building improvements Vehicles, machinery and equipment Water, sanitary and drainage infrastructure Roads infrastructure

Useful life – Years 3 – 85 10 – 60 10 – 50 1 – 70 1 – 100 1 – 75

Annual amortization is charged in the year of acquisition and in the year of disposal. Assets under construction are not amortized until the asset is available for productive use. (ii) Contributions of tangible capital assets: Tangible capital assets received as contributions are recorded at their fair value at the date of receipt and are also recorded as revenue. (iii) Natural resources: Natural resources are not recognized as assets in the financial statements. (iv) Works of art and historic assets: Works of art and historic assets are not recorded as assets in the financial statements. (v) Interest capitalization: The City does not capitalize interest costs associated with the acquisition or construction of a tangible capital asset. (vi) Leased tangible capital assets: Leases, which transfer substantially all of the benefits 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.

City of Coquitlam 2014 Annual Report

35

Notes to Consolidated Financial Statements (continued) Year ended December 31, 2014 2. Significant accounting policies (continued): (vii) Inventories of supplies: Inventories of supplies held for consumption are recorded at the lower of actual cost and replacement cost. (j) Employee future benefits: The City and its employees participate in the Municipal Pension Plan. The Municipal Pension Plan is a multi-employer contributory defined benefit pension plan. Payments in the year are expensed.

Sick leave benefits and retirement severance benefits are also available to the City’s employees. The costs of these benefits are actuarially determined based on service and best estimates of retirement ages and expected future salary and wage increases. The obligation under these benefit plans is accrued based on projected benefits as the employees render services necessary to earn the future benefits. (k) Use of accounting estimates: The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Significant areas requiring the use of management estimates relate to the determination of accrued sick benefits, allowance for doubtful accounts receivable, useful lives of tangible capital assets, and provision for contingencies. Actual results could differ from those estimates. Adjustments, if any, will be reflected in the financial statements in the period that the change in estimate is made, as well as in the period of settlement if the amount is different. (l) Segment disclosures: A segment is defined as a distinguishable activity or group of activities of a government for which it is appropriate to separately report financial information to achieve the objectives of the standard. The City has provided definitions of segments used by the City as well as presented financial information in segmented format (note 18).

36

City of Coquitlam 2014 Annual Report

Notes to Consolidated Financial Statements (continued) Year ended December 31, 2014 3. Cash and temporary investments:

Operating funds, unrestricted $ Reserve funds, internally restricted Deferred revenue and deposits, restricted

2014

2013

207,032,591 $ 207,598,459 57,865,119 58,126,045 56,612,908 55,791,906

$ 321,510,618 $ 321,516,410

Cash balances

$

Temporary investments:

Money market securities and bonds maturing within three years

2014 72,251,265 $

249,259,353

2013 14,664,503

306,851,907

$ 321,510,618 $ 321,516,410 Average portfolio yield is 1.54% (2013 - 1.50%).

The City has available a revolving facility up to a maximum of $5,000,000 that bears interest at an annual rate of bank prime less 0.50% per annum, and standby letters of credit up to a maximum of $100,000, for its ongoing operating requirements. The City also has available a revolving facility of $500,000 that bears interest at an annual rate of bank prime for its ongoing capital requirements. The City provided security for these facilities by way of a general security agreement. No amounts are outstanding under these banking facilities.

City of Coquitlam 2014 Annual Report

37

Notes to Consolidated Financial Statements (continued) Year ended December 31, 2014 4. Accounts receivable:

Taxes $ Accrued interest Due from other governments Evergreen Line grant receivable Development cost charges Local area service fees Water, sewer and solid waste user charges Other

2014 6,793,080 $ 1,530,463 4,981,373 7,000,000 7,229,045 1,398,736 1,185,048 1,999,269

2013 6,113,369 956,239 4,639,937 7,000,000 8,189,917 2,074,478 1,219,872 3,094,273

$ 32,117,014 $ 33,288,085

5. Accounts payable and accrued liabilities:

Due to other governments $ Evergreen Line payable Accounts payable Wages payable Accrued sick leave and retirement benefit liability (note 14) Tangible capital lease obligation

2014 10,115,351 $ 7,100,571 12,363,502 8,680,506 7,461,200 46,171

2013 19,364,724 7,100,571 10,519,118 6,675,015 7,296,500 72,954

$ 45,767,301 $ 51,028,882

38

City of Coquitlam 2014 Annual Report

Notes to Consolidated Financial Statements (continued) Year ended December 31, 2014 6. Deferred revenue:

Balance, Balance, December 31, Amounts Revenue December 31,

2013 received recognized 2014

Taxes and utilities $ 7,297,428 $

Parks and recreation fees 575,186

Business licenses 810,723

Federal, provincial and

regional future capital works 680,122

Other future capital works 306,081

Development cost charges 42,158,073 Other 117,204

14,654,124 $ 986,694 788,465

14,356,948 $ 1,004,138 810,723

7,594,604 557,742 788,465

4,869,004 4,048,212 1,500,914 6,719 99,920 212,880 12,041,266 11,148,328 43,051,011 1,480,431 1,427,926 169,709

$ 51,944,817 $ 34,826,703 $ 32,896,195 $ 53,875,325

Development cost charges are comprised of restricted cash and temporary investments of $35,821,966 (2013 – $33,968,156) and restricted accounts receivable of $7,229,045 (2013 – $8,189,917).

City of Coquitlam 2014 Annual Report

39

Notes to Consolidated Financial Statements (continued) Year ended December 31, 2014 7. Deposits:

Balance,

December 31,

2013

Deposits, earnings and contributions

Public works performance deposits $ 15,907,786 $ Gravel remediation fund 770,107 Building performance bonds 2,356,399 Development permit bonds 1,612,596 Pinetree Community Centre contingency 47,661 Deposits on land sale 1,050,000 Other 79,201

$ 21,823,750 $

3,389,503 $ 11,706 1,040,980 550,637 469 40,000 5,087

Refunds Balance, and December 31, expenditures 2014 3,951,677 $ - 788,158 241,255 2,012 1,080,000 8,088

15,345,612 781,813 2,609,221 1,921,978 46,118 10,000 76,200

5,038,382 $ 6,071,190 $ 20,790,942

The City holds irrevocable letters of credit in the aggregate amount of $38,742,836 (2013 – $43,932,932) received from depositors to ensure their performance of works to be undertaken within the City. These amounts are not reflected in the financial statements.

8. Long-term liabilities:

Long-term debt, net of sinking fund deposits (a) $ Temporary borrowings

2014 23,374,197 $ 1,881,524

2013 24,992,807 9,498,692

$ 25,255,721 $ 34,491,499

40

City of Coquitlam 2014 Annual Report

Notes to Consolidated Financial Statements (continued) Year ended December 31, 2014 8. Long-term liabilities (continued): (a) Long-term debt, net of sinking fund deposits: The City obtains debt instruments through the Municipal Finance Authority (“MFA”) pursuant to security issuing bylaws under the authority of the Community Charter to finance certain capital expenditures. Sinking fund balances managed by the MFA are netted against related long-term debt. The gross amount of the debt and the amount of the sinking fund assets available to retire the debt are as follows:

Gross

debt

Sinking fund asset

Net debt 2014

Net debt 2013

General Fund $ 25,549,000 $ 10,544,790 $ 15,004,210 $ 16,328,807

Water Utility Fund 5,930,000 201,235 5,728,765 5,930,000

Sewer and Drainage Utility Fund 2,734,000 92,778 2,641,222 2,734,000

$ 34,213,000 $ 10,838,803 $ 23,374,197 $ 24,992,807

Interest rates on long-term debt range from 2.10% to 7.30%. The weighted average interest rate for 2014 was 3.61% (2013 – 3.01%). (b) Principal payments and sinking fund instalments on net outstanding debenture debt over the next five years and thereafter are as follows: Sewer and General Drainage

Fund Utility Fund

Water Utility Fund

Total

2015 $ 3,251,636 $ 2016 1,204,239 2017 1,160,925 2018 1,082,834 2019 1,027,275

2020 and thereafter 9,158,825

95,485 $ 207,105 $ 3,554,226 99,304 215,390 1,518,933 103,277 224,005 1,488,207 107,408 232,965 1,423,207 111,704 242,284 1,381,263 2,124,044 4,607,016 15,889,885

Total

2,641,222 $ 5,728,765 $ 25,255,721

$ 16,885,734 $

City of Coquitlam 2014 Annual Report

41

Notes to Consolidated Financial Statements (continued) Year ended December 31, 2014 9. Tangible capital assets:

Building

Land & &

Land Building Park Information

Holdings Improvements Structures Technology

2014 Cost

Balance, beginning of year $ 778,404,364 $ 186,065,120 $ 68,321,575 $ 22,463,896 Additions, net of transfers 32,627,983 2,664,416 4,286,426 2,797,824 Disposals (5,687) (464,908) (756,690) (307,263)

Balance, end of year

$ 811,026,660

$ 188,264,628

$ 71,851,311

$ 24,954,457

Accumulated amortization Balance, beginning of year $ Disposals Amortization expense

- $ 64,041,943 $ 30,162,394 $ 11,550,398 - (170,504) (702,439) (222,916) - 6,524,173 2,939,149 1,448,487

Balance, end of year $ - $ 70,395,612 $ 32,399,104 $ 12,775,969

42

City of Coquitlam 2014 Annual Report

Net book value, end of year

$ 811,026,660

$ 117,869,016

$ 39,452,207

$ 12,178,488

Net book value, beginning of year

$ 778,404,364

$ 122,023,177

$ 38,159,181

$ 10,913,498

Water,

Vehicles, Sewer

Machinery &

& Drainage Roads

Equipment Infrastructure Infrastructure Traffic

Assets under Construction

Total

$ 38,463,215 $ 594,835,487 $ 422,950,046 $ 51,754,416 $ 19,185,677 $ 2,182,443,796 6,783,641 21,470,226 8,155,005 1,675,526 13,016,940 93,477,987 (2,090,946) (1,944,931) (1,552,211) (398,567) - (7,521,203) $ 43,155,910

$ 614,360,782

$ 429,552,840

$

$ 17,874,987 $ 179,829,000 $ 135,198,590 $ (1,961,772) (642,146) (1,083,517) 2,981,536 9,361,282 10,439,259

$ 18,894,751 $ 188,548,136 $ 144,554,332

53,031,375

$

32,202,617 $ 2,268,400,580

25,453,076 $ (72,126) 1,591,551

- $ - -

464,110,388 (4,855,420) 35,285,437

$

26,972,501

$

- $

494,540,405

$ 24,261,159

$ 425,812,646

$ 284,998,508

$

26,058,874

$

32,202,617 $ 1,773,860,175

$ 20,588,228

$ 415,006,487

$ 287,751,456

$

26,301,340

$

19,185,677 $ 1,718,333,408

City of Coquitlam 2014 Annual Report

43

Notes to Consolidated Financial Statements (continued) Year ended December 31, 2014 9. Tangible capital assets (continued):

Building

Land & &

Land Building Park Information

Holdings Improvements Structures Technology

2013 Cost

Balance, beginning of year $ 759,166,175 $ 183,090,146 $ 66,356,763 $ 21,592,098 Additions, net of transfers 20,500,460 3,126,838 2,191,824 2,082,642 Disposals (31,185) (151,864) (227,012) (1,210,844) Transfers to land held for resale (1,231,086) - - - Balance, end of year

$ 778,404,364

$ 186,065,120

$ 68,321,575

$ 22,463,896

Accumulated amortization Balance, beginning of year $ Disposals Amortization expense

- $ 57,594,680 $ 27,518,853 $ 11,219,538 - (40,767) (124,379) (1,141,872) - 6,488,030 2,767,920 1,472,732

Balance, end of year $ - $ 64,041,943 $ 30,162,394 $ 11,550,398

44

City of Coquitlam 2014 Annual Report

Net book value, end of year

$ 778,404,364

$ 122,023,177

$ 38,159,181

$ 10,913,498

Net book value, beginning of year

$ 759,166,175

$ 125,495,466

$ 38,837,910

$ 10,372,560

Water,

Vehicles, Sewer

Machinery &

& Drainage Roads

Equipment Infrastructure Infrastructure Traffic

$ 36,226,356 $ 567,577,016 $ 409,111,128 $ 4,219,902 28,493,378 16,931,560 (1,983,043) (1,234,907) (3,092,642)

- - - $ 38,463,215

$ 594,835,487

$ 422,950,046

$

$ 16,804,162 $ 171,739,986 $ 126,790,931 $ (1,812,163) (321,597) (1,780,795) 2,882,988 8,410,611 10,188,454

$ 17,874,987 $ 179,829,000 $ 135,198,590

Assets under Construction

Total

49,137,223 $ 2,614,151 3,042 -

16,689,746 $ 2,108,946,651 2,495,931 82,656,686 - (7,928,455) - (1,231,086)

51,754,416

19,185,677 $ 2,182,443,796

$

24,069,506 $ 1,394 1,382,176

- $ - -

435,737,656 (5,220,179) 33,592,911

$

25,453,076

$

- $

464,110,388

$ 20,588,228

$ 415,006,487

$ 287,751,456

$

26,301,340

$

19,185,677 $ 1,718,333,408

$ 19,422,194

$ 395,837,030

$ 282,320,197

$

25,067,717

$

16,689,746 $ 1,673,208,995

City of Coquitlam 2014 Annual Report

45

Notes to Consolidated Financial Statements (continued) Year ended December 31, 2014 9. Tangible capital assets (continued): (a) Assets under construction: Assets under construction with a value of $32,202,617 (2013 – $19,185,677) have not been amortized. Amortization of these assets will commence when they are put into service. (b) Contributed tangible capital assets: Contributed tangible capital assets have been recognized at fair market value at the date of contribution. The value of contributed assets received is as follows:

2014

2013

Land and land holdings $ 12,085,547 $

Vehicles, machinery and equipment 4,692 Water infrastructure 2,000,027 Sewer infrastructure 4,884,810 Drainage infrastructure 1,212,591 Road infrastructure 1,525,397 Traffic 638,727

14,391,145 37,811 5,244,348 4,741,649 4,039,235 6,557,987 1,197,762

36,209,937

Developer’s contribution revenue

$

22,351,791 $

(c) Works of art and historical treasures: The City manages and controls various works of art and non-operational historical assets, including artifacts, paintings and sculptures located at City sites and public display areas. These assets are not recorded as tangible capital assets and are not amortized. (d) Writedown of tangible capital assets: There was no writedown of tangible capital assets during the year (2013 – nil).

46

City of Coquitlam 2014 Annual Report

Notes to Consolidated Financial Statements (continued) Year ended December 31, 2014 10. Accumulated surplus:

Invested in

tangible Operating Capital Surplus/ capital reserves reserves deficit assets

Total

General Fund $ 23,348,819 $ 93,586,730 $ 18,066,236 $ 1,327,573,652 $ 1,462,575,437

Water Utility Fund 39,950 8,127,766 16,797,947 114,577,461 139,543,124

Sewer and Drainage 428,941 9,947,521 4,671,731 301,545,195 316,593,388 Statutory Reserves - 57,865,119 5,171,033 - 63,036,152 QNet - - (4,104,621) 2,815,437 (1,289,184) Library - 115,052 871,305 1,692,876 2,679,233

Total for 2014

$ 23,817,710

$ 169,642,188

$ 41,473,631

$ 1,748,204,621

$ 1,983,138,150

Total for 2013

$ 27,290,627

$ 166,546,318

$ 38,735,656

$ 1,683,862,164

$ 1,916,434,765

11. Taxation revenue:

The City is required to collect taxes on behalf of, and transfer these amounts to, the government agencies noted below:

2014

2013

Tax collected: General purposes $ 120,406,325 $ 114,844,905

Collections for other governments 82,899,149 80,989,670

Sewer and drainage frontage tax 19,686,520 18,259,765 222,991,994 214,094,340

Less transfers to other governments:

Province of B.C. – school taxes 65,482,953

Greater Vancouver Regional District 2,074,079

BC Assessment Authority 2,116,923

South Coast British Columbia Transportation Authority 13,093,924

Austin Heights BIA 124,630 MFA 6,639

63,886,105 1,993,720 2,079,543 12,902,771 121,000 6,531

82,899,148 80,989,670

Taxation revenue

$

140,092,846 $ 133,104,670 City of Coquitlam 2014 Annual Report

47

Notes to Consolidated Financial Statements (continued) Year ended December 31, 2014 12. Government transfers:

Included in total grants and grants in lieu revenue are the following government transfers:

Federal $ Provincial and regional

2014 480,812 $ 4,543,372

2013 80,740 4,467,351

$ 5,024,184 $ 4,548,091 13. Pension Plan: The City 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 the investment of the assets and administration of benefits. The pension plan is a multi-employer contributory pension plan. Basic pension benefits provided are based on a formula. The Plan has about 182,000 active members and approximately 75,000 retired members. Active members include approximately 36,000 contributors from local governments, of which 1,008 (2013 – 973) are the City’s employees.

The most recent valuation as at December 31, 2012 indicated a $1,370 million funding deficit for basic pension benefits.

The next actuarial valuation will be performed as at December 31, 2015, with results available in 2016. Defined contribution plan accounting is applied to the Plan, as the Plan exposes the participating entities to actuarial risks associated with the current and former employees of other entities, with the result that there is no consistent and reliable basis for allocation the obligation, Plan assets and cost to individual entities participating in the Plan.

The City paid $6,591,000 (2013 – $6,071,000) for employer contributions to the Plan in fiscal 2014. Employees paid $5,573,000 (2013 – $5,345,000) for employee contributions to the Plan in fiscal 2014.

14. Employee future benefits: The City provides benefits for sick leave and certain other retirement benefit arrangements to its employees.

All employees accumulate sick leave entitlement on a monthly basis and can only use this entitlement for paid time off under certain circumstances. Retirement benefit payments represent the City’s share of the cost to provide employees with various benefits upon retirement. The accrued benefit obligation and the net periodic benefit cost were estimated by an actuarial valuation completed in February 2014 and updated in January 2015.

48

City of Coquitlam 2014 Annual Report

Notes to Consolidated Financial Statements (continued) Year ended December 31, 2014 14. Employee future benefits (continued):

Information about liabilities for the City’s employee benefit plans is as follows:

Sick

leave

Retirement benefit payments

Accrued benefit obligation:

Balance, beginning of year $ 3,773,300 $

Current service cost 341,000 Interest cost 160,600 Benefits paid (435,900)

Actuarial loss (gain) 365,200

3,646,400 $ 320,600 154,200 (527,500) 417,300

7,419,700 $ 8,605,400 661,600 776,400 314,800 315,700 (963,400) (609,500) 782,500 (1,668,300)

4,011,000

8,215,200 $

Accrued benefit liability, end of year

$ 4,204,200

$

$

2014 Total

2013 Total

7,419,700

Actuarial gains and losses are amortized over 11.4 years, being the expected average remaining service period of the related employee group, commencing the year after the gain or loss arises.

Sick

leave

Retirement benefit payments

2014 Total

2013 Total

Accrued benefit obligation:

Liability, end of year $ 4,204,200 $

Unamortized actuarial loss (gain) 47,000

4,011,000 $ (801,000)

8,215,200 $ (754,000)

7,419,700 (123,200)

3,210,000

7,461,200 $

7,296,500

Accrued benefit liability, end of year

$ 4,251,200

$

$

The accrued benefit liability is included as part of accounts payable and accrued liabilities on the statement of financial position (note 5).

The significant actuarial assumptions adopted in measuring the City’s accrued benefit obligation are as follows: 2014 2013

Discount rates Expected future inflation rates Expected wage and salary increases

3.20% 4.10% 2.50% 2.50% 2.50% 2.50% City of Coquitlam 2014 Annual Report

49

Notes to Consolidated Financial Statements (continued) Year ended December 31, 2014 15. Commitments and contingencies: (a) The City has entered into various agreements and contracts for services and construction with periods ranging from one to five years. (b) The City has a contingent liability with respect to debentures of the Greater Vancouver Water District, Greater Vancouver Sewerage and Drainage District and Greater Vancouver Regional District, to the extent provided for in their respective Enabling Acts, Acts of Incorporation and Amending Acts. Management does not consider payment under this contingency to be likely and therefore no amounts have been accrued. (c) The City is obligated to collect and transmit property taxes levied on Coquitlam taxpayers in respect of the following bodies:

Ministry of Education, Province of B.C.

Greater Vancouver Regional District

BC Assessment Authority

South Coast British Columbia Transportation Authority MFA (d) There are several lawsuits pending in which the City is involved. The potential claims against the City resulting from such litigation and not covered by insurance are currently undeterminable. Management considers that any outcome would not materially affect the consolidated financial statements of the City. (e) As of January 1, 2012, the City self-insures liabilities up to $1,500,000. Historical liabilities with an occurrence date prior to December 31, 2011 are insured by the Municipal Insurance Association of British Columbia. (f) The City obtains debt instruments through the MFA. The City is also required to execute demand notes in connection with each debenture whereby the City may be required to loan certain amounts to the MFA. The demand notes are contingent in nature and are not reflected in the accounts. Details of the contingent demand notes are as follows:

Operating funds: General $ Water utility

Sewer and drainage utility

2014

980,930 $ 154,438 71,168

2013

980,918 154,422 71,196

$ 1,206,536 $ 1,206,536

50

City of Coquitlam 2014 Annual Report

Notes to Consolidated Financial Statements (continued) Year ended December 31, 2014 15. Commitments and contingencies (continued): (g) The City is a shareholder of the 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 2 Class A shares and 1 Class B share (of a total of 28 Class A and 23 Class B shares issued and outstanding as at December 31, 2014). 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.

16. Trust funds: Trust fund balance sheet:

2014

2013

Assets: Investments $ 2,586,673 $ 2,484,332

Due from City of Coquitlam 12,278 30,721 $ 2,598,951 $ 2,515,053

Net assets:

Cemetery perpetual care fund (a) $

Gravel pit fund (b)

1,821,022 $ 777,929

1,737,124 777,929

$ 2,598,951 $ 2,515,053 (a) Cemetery perpetual care fund: The City operates the Robinson Memorial Park Cemetery and maintains a cemetery perpetual care fund in accordance with the Cremation, Interment and Funeral Services Act. (b) Gravel pit fund: The City is holding funds in trust for a third party to be used for the future remediation of land. Interest earned since March 1993 accrues to the City.

City of Coquitlam 2014 Annual Report

51

Notes to Consolidated Financial Statements (continued) Year ended December 31, 2014 17. Related-party transactions: The City provides facilities to the following cultural groups at no cost:

Evergreen Cultural Centre

Place des Arts

Mackin House Museum These cultural groups provide services to the community.

18. Segmented information: The City is a diversified municipal government institution that provides a wide range of services to its citizens, including Protection Services, Recreation and Culture Services, General Government Services, Engineering Services, Solid Waste Services, Planning and Development Services, Water Supply Services, and Sewer and Drainage Services. For management reporting purposes, the City’s operations and activities are organized and reported by Service Areas. Service Areas were created for the purpose of recording specific activities to attain certain objectives in accordance with regulations, restrictions and limitations.

City Services are provided by departments and their activities are reported in these Service Areas. Departments disclosed in the segmented information, along with the services they provide, are as follows: General Government Services – Mayor & Council, City Manager and Deputy City Manager, Corporate Services, Corporate Planning, Clerk’s Office, Strategic Initiatives, Legal Services, Financial Services, Information Technology, Coquitlam Optical Network Corporation, Communications, and Human Resources Departments The departments within General Government Services are responsible for adopting bylaws; adopting administrative policy; levying and collecting taxes and utilities; acquiring, disposing and managing City assets; supporting the City’s integrated software, internet and intranet applications; ensuring effective financial management and communication; monitoring performance; and ensuring that high-quality City service standards are met.

Water Supply Services The Water Utility Department operates and distributes over 21 million cubic metres of drinking water, maintains water mains, pump stations and storage reservoirs.

Protection Services – Police, Fire/Rescue, Emergency Planning, Licensing, and Bylaw Enforcement The mandate of the Protection Services areas is to enforce laws, prevent crime and maintain peace, order and security by protecting life, property and the environment through the provision of emergency response, ensuring safety for the public.

Engineering Services Engineering and Public Works is responsible for the systems that enable the community to use transportation facilities, including roads and signal systems.

Solid Waste Services The Solid Waste Department is responsible for garbage collection, green waste collection and recycling.

52

City of Coquitlam 2014 Annual Report

Notes to Consolidated Financial Statements (continued) Year ended December 31, 2014 18. Segmented information (continued): Sewer and Drainage Services The Sewer and Drainage Department is responsible for the disposal of sanitary sewage and drainage, as well as the network of sewer mains, storm sewers and pump stations.

Planning and Development Services The Planning and Development Department is responsible for preparing land use plans, bylaws and policies for sustainable development of the City and for reviewing and approving new development.

Recreation and Culture – Parks, Recreation and Culture and Public Library The Recreation and Culture area is responsible for providing, facilitating the development of, and maintaining highquality parks, recreation facilities and cultural services, including public libraries.

City of Coquitlam 2014 Annual Report

53

Notes to Consolidated Financial Statements (continued) Year ended December 31, 2014

18. Segmented Information (continued):

General Water Supply Protection Engineering Solid Waste

Government Services (Including QNet)

Sewer & Drainage Utility

Taxation, net $ 120,406,326 $ - $ - $ - $ - $ 19,686,520 User rates - 24,345,805 - - - 5,131,343 Fees and service charges 1,977,684 1,437,216 3,050,597 3,895,261 - 2,070,290 Developer built/gifted assets 14,254,363 2,000,027 - - - 6,097,401 Municipal land sale 14,809,576 - - 599,761 - - Solid waste levies - - - - 7,235,774 - Cost recoveries 360,144 5,341 3,953,776 765,938 - 72,389 Casino revenue 6,442,834 - - - - - Grants 1,850,192 - 1,067,648 2,082,778 - 139,321 Investment income 3,578,217 384,920 - - - 160,435 Grants, in lieu of taxes 3,634,400 - - - - - Rents and leases 1,252,142 - 26,117 319 - - Penalties and interest on taxes 1,052,128 - - - 48,929 - Inspection and other fees 8,800 337,959 - - - 405,251 Sundry 470,323 7,963 51,672 12,704 - 9,290 Total revenues:

54

City of Coquitlam 2014 Annual Report

$ 170,097,129

$ 28,519,231

$ 8,149,810

$ 7,356,761

$ 7,284,703

$ 33,772,240

Planning and Development

$ - $

- 6,321,818

-

-

-

8,875

-

-

-

-

-

-

- 249,869 $ 6,580,562

Recreational and Cultural (Incl. Library)

Reserves & Other Funds

- $ - $ - - 9,796,763 - - - - - - - 644,092 1,078,982 - - 512,047 - 41,254 964,940 - - 1,766,890 - 66,017 - - - 75,648 238,181

$ 12,902,711

$ 2,282,103

Total 2014

Total 2013

140,092,846 $ 133,104,670 29,477,148 28,414,125 28,549,629 38,779,980 22,351,791 36,209,937 15,409,337 1,265,221 7,235,774 9,295,477 6,889,537 6,869,307 6,442,834 6,730,968 5,651,986 5,127,743 5,129,766 5,858,896 3,634,400 3,650,441 3,045,468 2,977,440 1,167,074 1,111,029 752,010 589,465 1,115,650 2,517,232

$ 276,945,250

$ 282,501,931

City of Coquitlam 2014 Annual Report

55

Notes to Consolidated Financial Statements (continued) Year ended December 31, 2014 18. Segmented information (continued):

General Water Supply Protection Engineering Solid Waste

Government Services (Including QNet)

Salaries and benefits $ 13,448,698 $ 2,464,424 $ Consulting and professional services 1,098,706 320,402 Amortization 2,250,665 2,696,915 Regional District utility charges - 11,795,643 Supplies and equipment 1,066,906 1,518,059 Grants and sponsorship 574,272 - Utilities 11,055 347,257 Garbage collection and disposal - 71,787 Maintenance 1,737,735 3,446 Debenture interest payments - 227,859 Insurance and claims 858,462 40,093 Courses and meetings 322,144 34,986 Telephone and communications 252,724 15,834 Advertising and media 210,322 5,447 Legal 198,209 - Internal allocations (5,767,564) 1,950,497 Other 254,962 90,059

56

Sewer & Drainage Utility

30,402,434 $ 9,286,192 $ 311,890 $ 2,824,863 21,701,235 3,850,442 4,573,797 876,208 1,379,409 12,938,609 - 7,048,833 - 20,586 - 10,468,965 2,063,911 6,365,739 129,985 1,872,427 20,000 - - - 264,175 1,087,688 - 170,448 24,503 151,994 2,039,816 175,591 94,373 447,641 - 2,630 - 994,095 - 105,053 17,376 211,940 - 10,568 182,127 73,513 2,094 52,848 128,887 39,428 1,223 14,678 15,827 5,665 22,481 - 24,133 - - 3,278 - (7,040,172) 567,083 2,511,769 67,179 10,120 55 68,581

Total expenses:

$ 16,517,296

$ 21,582,708

$ 56,385,569

$ 28,443,480

$ 7,648,424

$ 26,206,740

Annual surplus (deficit)

$ 153,579,833

$ 6,936,523

$ (48,235,759)

$ (21,086,719)

$ (363,721)

$ 7,565,500

City of Coquitlam 2014 Annual Report

Planning and Development

Recreational and Cultural (Incl. Library)

$6,188,701 $ 21,275,077 $ 313,846 3,879,728

- 8,971,006

- - 124,651 3,356,997

- 6,623,743

- 1,860,983

- 138,728

879 369

- -

- -

64,132 70,059

19,567 67,013

1,149 96,290

- - (113,306) (309,858)

5,377 822,517

Reserves & Other Funds

- $ - - - - - - - - - - - - - - - -

Total 2014

86,202,279 $ 36,614,364 35,285,437 22,285,194 16,498,675 7,218,015 3,741,606 2,602,419 2,287,073 1,327,007 1,138,439 801,903 539,354 357,181 225,620 (8,201,551) 1,318,850

Total 2013

82,598,738 38,799,325 33,592,911 22,316,344 16,640,850 7,312,817 3,416,917 2,721,875 1,916,803 1,471,882 1,195,912 729,581 521,680 301,785 230,958 (7,677,382) 1,338,815

$ 6,604,996

$ 46,852,652

$

-

$ 210,241,865

$ 207,429,811

$

$ (33,949,941)

$ 2,282,103

$ 66,703,385

$

(24,434)

75,072,120

City of Coquitlam 2014 Annual Report

57

Notes to Consolidated Financial Statements (continued) Year ended December 31, 2014 19. Budget data: The budget data presented in these consolidated financial statements is based upon the 2014 operating and capital budgets approved by Council on December 9, 2013. The chart below reconciles the approved budget to the budget figure reported in these consolidated financial statements.

Budget Amount Revenue: Operating budget $ 232,525,248 Expense: Operating budget 214,988,750

58

City of Coquitlam 2014 Annual Report

Annual surplus per statement of operations Less capital expenses Add: capital funding from reserves

Approved budget $

17,536,498 (73,093,880) 55,557,382 -

General Fund – Statement of Financial Position

Schedule A

December 31, 2014, with comparative figures for 2013

2014

2013

Financial assets Cash and short-term deposits $ Accounts receivable Deposit, MFA

168,312,749 $ 173,279,801 23,141,497 23,548,782 422,898 410,982

191,877,144 197,239,565 Liabilities Accounts payable and accrued liabilities Deferred revenue Long-term debt

40,393,748 10,819,313 16,885,734

44,673,652 9,786,743 25,827,499

68,098,795 80,287,894 Net financial assets

123,778,349

116,951,671

Non-financial assets Tangible capital assets 1,337,587,694 1,289,541,749 Inventories of supplies 617,383 629,034 Prepaid expenses 592,011 585,402

1,338,797,088 1,290,756,185 Accumulated surplus

$ 1,462,575,437 $ 1,407,707,856

City of Coquitlam 2014 Annual Report

59

General Fund – Statement of Operations

Schedule B

Year ended December 31, 2014, with comparative figures for 2013

2014 Budget

2014

2013

Revenue:

Taxation, net $ Grants

Grants, in lieu of taxes

Fees and service charges

Solid waste levies Rents

Investment income

Penalties and interest on taxes

Casino revenue

Developer’s contribution

Cost recoveries Sundry

Municipal land sale

119,564,440 $ 120,406,326 $ 114,844,905 5,864,962 5,202,307 4,816,353 3,805,000 3,634,400 3,650,441 23,352,781 25,024,473 35,154,032 7,467,200 7,235,774 9,295,477 2,118,155 2,650,309 2,641,860 3,147,404 3,678,279 3,918,814 905,500 1,101,057 1,049,496 7,200,000 6,442,834 6,730,968 - 14,254,363 22,161,695 4,699,024 5,702,749 5,068,712 43,824 786,996 1,007,676 - 15,409,337 1,265,221

178,168,290 211,529,204 211,605,650 Expenses:

General government 15,259,209 14,049,343 13,212,187

Police protection 31,599,821 29,181,086 29,013,718

Fire protection 22,349,817 22,129,960 21,422,776

Other protection 2,619,818 2,305,463 2,351,379 Engineering 13,506,373 12,209,815 12,160,905

Solid waste 7,583,322 7,648,424 8,885,716

Planning and development 6,835,194 6,365,358 6,267,947

Parks, recreation and culture 36,486,834 36,477,168 35,208,998

Debenture interest payments 1,441,771 994,095 1,029,777

Retroactive and severance pay 1,678,676 1,431,795 625,369 Amortization 23,500,000 24,863,684 24,087,098

Tangible capital assets adjustments 4,400,123 3,254,187 4,876,763 167,260,958 160,910,378 159,142,633 10,907,332 50,618,826 52,463,017 Transfer from Land Sale Reserve Transfer to Vehicle Replacement Reserve Transfer to Land Sale Reserve Transfer from Reserve Funds

11,901,671 (2,094,288) (2,385,663) 1,901,000

24,473,328 (2,609,944) (18,608,361) 993,732

6,979,390 (2,563,209) (5,734,233) 3,002,973

Annual surplus

20,230,052

54,867,581

54,147,938

Accumulated surplus, beginning of year Accumulated surplus, end of year

60

City of Coquitlam 2014 Annual Report

1,407,707,856 1,407,707,856 1,353,559,918

$ 1,427,937,908

$ 1,462,575,437 $ 1,407,707,856

Water Utility Fund – Statement of Financial Position

Schedule C

December 31, 2014, with comparative figures for 2013

2014

2013

Financial assets Cash and short-term deposits

$

25,219,309 $

24,641,183

Accounts receivable

815,557

815,239

Deposit, MFA

62,500

60,734

26,097,366 25,517,156 Liabilities Accounts payable and accrued liabilities

3,819,987

5,292,445

Long-term debt

5,728,765

5,930,000

9,548,752 11,222,445

Net financial assets

16,548,614

14,294,711

Tangible capital assets

122,932,390

119,443,480

Inventories of supplies

62,120

60,228

Non-financial assets

122,994,510 119,503,708 Accumulated surplus

$

139,543,124 $ 133,798,419

City of Coquitlam 2014 Annual Report

61

Water Utility Fund – Statement of Operations

Schedule D

Year ended December 31, 2014, with comparative figures for 2013

2014 Budget

City of Coquitlam 2014 Annual Report

2013

Revenue:

User rates $

Water connection fees

Inspection and other fees

Investment income

Developer’s contribution

Sinking fund surplus

Cost recoveries

24,538,279 $ 1,577,000 345,000 645,366 - - -

27,105,645 28,519,231 31,259,508

Expenses: Administration

Water supply Pumping Maintenance

Debenture interest payments Amortization

Tangible capital assets adjustments

3,957,618 11,417,911 870,136 2,242,870 228,305 2,400,000 86,195

21,203,035 22,626,416 21,446,766

62

2014 24,345,805 $ 1,437,216 337,959 384,920 2,000,027 7,963 5,341

3,603,624 11,795,675 769,107 2,373,382 227,859 2,696,915 1,159,854

5,902,610

23,193,522 1,726,667 227,985 637,489 5,244,348 222,055 7,442

3,743,760 11,785,190 846,418 2,350,480 239,553 2,522,170 (40,805)

5,892,815 9,812,742

Transfer from Statutory Reserves Transfer to Statutory Reserves

98,000 (238,722)

101,753 (249,863)

98,000 (270,498)

Annual surplus

5,761,888

5,744,705

9,640,244

Accumulated surplus, beginning of year

133,798,419

133,798,419

124,158,175

Accumulated surplus, end of year

139,560,307

139,543,124 $ 133,798,419

$

$

Sewer and Drainage Utility Fund – Statement of Financial Position

Schedule E

December 31, 2014, with comparative figures for 2013

2014 2013

Financial assets Cash and short-term deposits

$

12,162,115 $

Accounts receivable

321,891

8,603,527 149,687

Deposit, MFA 28,801 28,001

12,512,807 8,781,215 Liabilities Accounts payable and accrued liabilities

1,073,892

549,043

Long-term debt

2,641,222

2,734,000

3,715,114 3,283,043

Net financial assets

8,797,693

5,498,172

Tangible capital assets

307,771,691

303,724,153

Inventories of supplies

24,004

23,484

Non-financial assets

307,795,695 303,747,637 Accumulated surplus

$

316,593,388 $ 309,245,809

City of Coquitlam 2014 Annual Report

63

Sewer and Drainage Utility Fund – Statement of Operations

Schedule F

Year ended December 31, 2014, with comparative figures for 2013

64

City of Coquitlam 2014 Annual Report

2014 Budget

2014

2013

Revenue:

Sewer frontage tax $

User rates Grants

Fees and service charges

Inspection and other fees

Investment income

Developer’s contribution

Sinking fund surplus

Cost recoveries

19,105,964 $ 5,040,414 67,000 1,398,500 397,000 224,732 - - 204,500

26,438,110 33,772,240 35,523,473

19,686,520 $ 5,131,343 139,321 2,070,290 405,251 160,435 6,097,401 9,290 72,389

18,259,765 5,220,603 39,000 1,885,243 350,280 429,033 8,780,885 264,882 293,782

Expenses: Administration

Collection and disposal Pumping

Greater Vancouver Sewerage &

Drainage District

Debenture interest payments Amortization

Tangible capital assets adjustments

5,108,727 2,633,221 739,967

4,689,807 3,719,227 837,047

4,973,895 2,661,828 763,276

10,078,906 105,259 6,600,000 1,304,749

10,085,544 105,053 7,048,833 (242,717)

10,076,789 202,552 6,267,952 1,174,159

26,570,829 26,242,794 26,120,451

(132,719)

Transfer from Statutory Reserves Transfer to Reserves

98,000 (245,690)

98,000 (279,867)

110,300 (372,444)

Annual surplus

(280,409)

7,347,579

9,140,878

Accumulated surplus, beginning of year

309,245,809

309,245,809

300,104,931

Accumulated surplus, end of year

308,965,400

316,593,388 $ 309,245,809

$

$

7,529,446 9,403,022

Reserve Fund Balances

Schedule G

Year ended December 31, 2014, with comparative figures for 2013

General

Fund

Sewer and Drainage Utility Fund

Reserves for capital purposes:

Specific projects – in progress reserve $ 13,120,501 $

Infrastructure reserve 10,060,594

Equipment and component replacement reserve 5,588,546

Restricted debt reserve 2,399,780

Debt reserve -

Local area service reserve 1,906,626

Prepaid water main reserve -

Casino revenue reserve – municipal capital 5,510,686

Casino revenue reserve – community 792,756

Internal financing reserve 546,528

Drainage internal borrowing -

Affordable housing bylaw #3866 1,377,753

Bonus density – City Centre amenities 11,340,582

Bonus density – Austin Heights amenities 574,998

Bonus density – Burquitlam/Lougheed 1,549,278

Community amenity contribution 239,443

Waste utility reserve 589,642

Legacy building replacement reserve 22,474,909

Legacy road replacement reserve 8,573,228

DCC matching reserve 6,772,930

Waste bin asset replacement reserve 167,950

5,265,510 $ - 3,945,073 274,172 462,340 - - - - - 426 - - - - - - - - - -

Water Utility Fund

Statutory Reserves Library

2,195,369 $ - 2,584,873 230,018 3,080,001 - 37,505 - - - - - - - - - - - - - -

- $ - - - - - - - - - - - - - - - - - - - -

2014 Total

115,052 $ - - - - - - - - - - - - - - - - - - - -

2013 Total

20,696,432 $ 10,060,594 12,118,492 2,903,970 3,542,341 1,906,626 37,505 5,510,686 792,756 546,528 426 1,377,753 11,340,582 574,998 1,549,278 239,443 589,642 22,474,909 8,573,228 6,772,930 167,950

21,622,166 9,170,585 7,546,149 2,888,225 12,093,741 1,697,881 318,643 5,252,215 953,207 483,170 426 1,720,439 10,485,414 566,277 201,237 592,620 19,418,967 7,484,556 5,924,356 -

93,586,730 9,947,521 8,127,766 - 115,052 111,777,069 108,420,274

Statutory reserves:

Land sale statutory reserve - - - 31,725,449 - 31,725,449 35,579,563

Vehicle replacement statutory reserve - - - 16,033,398 - 16,033,398 13,590,943

Water utility statutory reserve - - - 783,482 - 783,482 775,324

Parkland statutory reserve - - - 9,309,068 - 9,309,068 8,097,083

Capital street works statutory reserve - - - 13,722 - 13,722 83,131

- - - 57,865,119

$ 93,586,730 $

9,947,521 $

8,127,766

$ 57,865,119

$

- 115,052

57,865,119 $ 169,642,188

58,126,044

$ 166,546,318

City of Coquitlam 2014 Annual Report

65

Reserve Fund Balances

Schedule G (continued)

Year ended December 31, 2014, with comparative figures for 2013

General

Fund

Sewer and Drainage Utility Fund

Water Utility Fund

Reserves for operating purposes:

Insurance reserve $ 9,942,540 $

Waste utility reserve 394,022

Soil removal fees reserve 785,641

Work in progress reserve 932,385

Public safety reserve 2,035,572

Tax appeals reserve 1,194,254

Building maintenance reserve 2,541,044

Commodity tax payable reserve 1,034,465

Cemetery reserve 234,776

Other operating reserves 888,003

WCB/Power Smart reserve 141,942

Specified area reserve 841,566

Election reserve 382,609

Snow and ice reserve 2,000,000

- $ - - - - - 428,941 - - - - - - -

- $ - - - - - 39,950 - - - - - - -

Total reserves for operating purposes

428,941 $

39,950

66

City of Coquitlam 2014 Annual Report

$

23,348,819

$

$

2014 Total

2013 Total

9,942,540 $ 394,022 785,641 932,385 2,035,572 1,194,254 3,009,935 1,034,465 234,776 888,003 141,942 841,566 382,609 2,000,000 23,817,710

$

9,061,847 5,553,512 642,567 321,709 2,488,155 1,140,201 2,596,763 1,024,206 237,052 731,332 142,532 850,747 500,004 2,000,000 27,290,627

For the year ending December 31, 2014

City of Coquitlam British Columbia

Financial Statements of Coquitlam Public Library Board Prepared by: The Coquitlam Public Library

City of Coquitlam 2014 Annual Report

67

Coquitlam Public Library Board

Independent Auditors’ Report To the Chair and Members of Coquitlam Public Library We have audited the accompanying financial statements of the Coquitlam Public Library, which comprise the statement of financial position as at December 31, 2014, the statements of operations, changes in net financial assets and cash flows for the year then ended, and notes, comprising a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility Our responsibility is to express an opinion on these 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 financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity’s preparation and fair presentation of the 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 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 financial statements present fairly, in all material respects, the financial position of the Coquitlam Public Library as at December 31, 2014 and its results of operations, its changes in net financial assets and its cash flows for the year then ended in accordance with Canadian public sector accounting standards.

Chartered Accountants February 25, 2015 Burnaby, Canada

68

City of Coquitlam 2014 Annual Report

Coquitlam Public Library Board

Statement of Financial Position December 31, 2014, with comparative figures for 2013

2014

2013

1,163,445 $

903,568

Financial assets Cash $ Temporary investments (note 3) Accounts receivable

170,090 32,968

168,535 26,331

1,366,503 1,098,434

Financial liabilities Accrued salaries and benefits Accounts payable and accrued liabilities Deferred revenue Tangible capital lease obligations (note 4)

332,064 81,849 5,000 46,171

317,416 42,798 72,954

465,084

433,168

Net financial assets

901,419

665,266

Tangible capital assets (note 5) Prepaid expenses

1,739,047 38,767

1,827,037 51,735

Commitment (note 10)

1,777,814 1,878,772

Accumulated surplus (note 6)

2,679,233 $

Non-financial assets

$

2,544,038

See accompanying notes to financial statements.

Approved on behalf of the Library Board:

______________________________ Chair ___________________________ Director Coquitlam Public Library Board

City of Coquitlam 2014 Annual Report

69

Coquitlam Public Library Board

Statement of Operations Year ended December 31, 2014, with comparative figures for 2013

2014 Budget (note 2(a))

Revenue:

Grants (note 7) $

Interest

Fines and fees

Photocopying services

Book salesq

Fundraising activities

Contribution of tangible capital assets Other

4,870,767 $ 11,000 70,000 - 4,000 20,000 - 16,700

4,907,121 $ 18,897 66,017 17,650 5,140 1,879 - 66,176

4,992,467

5,082,880 4,901,732

- 154,000 19,000 30,012 66,455 100,000 24,000 13,000 3,750,000 94,500

540,032 149,204 30,389 30,366 60,912 110,160 23,645 24,963 3,518,758 78,894

582,725 151,960 18,364 29,071 66,455 98,913 39,770 9,213 3,774,759 58,834

253,500 23,000 38,000

316,199 24,497 39,666

221,297 24,004 33,061

Expenses: Amortization

Building and grounds maintenance

Conferences and courses Insurance

InterLINK assessment

Magazines and online subscriptions

Professional fees

Promotion and publicity

Salaries and benefits

Supplies and equipment

Telecommunications, computer

charges and utilities Transportation

Rental, administration and other

City of Coquitlam 2014 Annual Report

2013

4,764,697 16,951 61,533 14,038 5,133 2,773 23,009 13,598

4,947,685 5,108,426

Annual surplus (deficit)

427,000

135,195

(206,694)

Accumulated surplus, beginning of year

2,544,038

2,544,038

2,750,732

Accumulated surplus, end of year

2,971,038

2,679,233 $

2,544,038

See accompanying notes to financial statements.

70

4,565,467

2014

$

$

Coquitlam Public Library Board

Statement of Changes in Net Financial Assets Year ended December 31, 2014, with comparative figures for 2013

Annual surplus (deficit)

$

Acquisition of tangible capital assets Contributed tangible capital assets Amortization of tangible capital assets

2014 Budget

2014

2013

135,195 $

(206,694)

(note 2(a)) 427,000

$

(427,000) -

-

(452,042) - 540,032

(400,207) (23,009) 582,725

-

223,185

(47,185)

Acquisition of prepaid expenses Use of prepaid expenses

- -

(38,767) 51,735

(51,735) 59,126

Change in net financial assets

-

236,153

(39,794)

Net financial assets, beginning of year

665,266

665,266

705,060

Net financial assets, end of year

665,266

901,419 $

665,266

$

$

See accompanying notes to financial statements.

City of Coquitlam 2014 Annual Report

71

Coquitlam Public Library Board

Statement of Cash Flows Year ended December 31, 2014, with comparative figures for 2013

2014

2013

Cash provided by (used in): Operations:

Annual surplus (deficit) $

Items not involving cash: Amortization

Contribution of tangible capital asset

Change in non-cash operating working capital:

Decrease (increase) in accounts receivable

Decrease in prepaid expenses

Increase (decrease) in accrued salaries and benefits

Increase (decrease) in accounts payable and accrued liabilities

Increase in deferred revenue

135,195 $ 540,032 - (6,637) 12,968 14,648 39,051 5,000 740,257

(206,694) 582,725 (23,009) 21,691 7,391 (5,683) (17,284) 359,137

Capital activities:

Cash used to acquire tangible capital assets

Principal payments under tangible capital lease obligations

(452,042) (26,783)

(374,305) (24,736)

(478,825)

(399,041)

Investing activities:

Increase in temporary investments (1,555) (2,194)

Net change in cash 259,877 (42,098) Cash, beginning of year

City of Coquitlam 2014 Annual Report

945,666

Cash, end of year

$

1,163,445 $

903,568

Non-cash transactions: Tangible capital assets financed by capital lease

$

- $

25,902

See accompanying notes to financial statements.

72

903,568

Coquitlam Public Library Board

Notes to Financial Statements Year ended December 31, 2014 1. Operations: The Coquitlam Public Library (the “Library”), which is funded primarily by the City of Coquitlam (the “City”), was established in 1977 pursuant to the Library Act of British Columbia (Part 2) as a Municipal Public Library. The Library is governed by a nine member municipally appointed Board of Trustees (the “Board”). The Board, on behalf of the residents and taxpayers of the City, oversees the management and operation of the Library and further serves as a policy-making body for the organization.

2. Significant accounting policies: These financial statements are prepared in accordance with Canadian public sector accounting standards, and include the following specific policies: (a) Budget information: Budget information, presented in these financial statements, is based on the 2014 operating and capital budgets developed by management. The 2014 budget was approved by the Board on January 22, 2014. Amortization was not contemplated in the budget and, as such, has not been included. Note 11 reconciles the budget developed by management to the budget figures reported in the financial statements. (b) Temporary investments: Temporary investments are recorded at cost which approximates market value. (c) Unspent capital and program-specific grants: Contributions received specifically for the acquisition of tangible capital assets are recorded as unspent capital grants and are recorded as revenue in the period that the funds are spent.

Contributions received specifically for program-related expenditures are recorded as unspent program grants and are recorded as revenue in the period that the funds are spent. (d) Non-financial assets: Non-financial assets are not available to discharge existing liabilities and are held for use in the provision of services.

They have useful lives extending beyond the current year and are not intended for sale in the ordinary course of operations.

City of Coquitlam 2014 Annual Report

73

Coquitlam Public Library Board

Notes to Financial Statements (continued) Year ended December 31, 2014 2. Significant accounting policies (continued): (e) Tangible capital assets: Tangible capital assets are recorded at cost, which includes amounts that are directly attributable to acquisition, construction, development or betterment of the asset. The cost, less residual value of the tangible capital assets, is amortized on either a straight-line basis or declining balance over their estimated useful lives as follows: Asset Rate Automotive Leasehold improvements Library collections Security equipment Computer equipment Furniture and equipment Assets under capital lease

Straight line – 5 to 10 years Straight line – 5 years Straight line – 5 years Straight line – 5 years Declining balance – 30% Declining balance – 7% to 20% Straight line over lease term

Land and buildings acquired for library purposes but funded by the City are recorded in the City’s financial statements and are not included in these financial statements.

Amortization commences when the asset is available for use. (i) Contributions of tangible capital assets: Tangible capital assets received as contributions are recorded at their fair value at the date of receipt and are recorded as revenue. (ii) Leased tangible capital assets: Leases, which transfer substantially all of the benefits 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. (f) Functional and object reporting: The operations of the Library are comprised of a single function, library operations. As a result, the expenses of the Library are presented by object in the statement of operations.

74

City of Coquitlam 2014 Annual Report

Coquitlam Public Library Board

Notes to Financial Statements (continued) Year ended December 31, 2014 2. Significant accounting policies (continued): (g) Employee future benefits: The Library and its employees make contributions to the Municipal Pension Plan (the “Plan”). These contributions are expensed as incurred. Sick leave benefits and retirement severance benefits are also available to the Library’s employees. The costs of these benefits are actuarially determined based on service and best estimates of retirement ages and expected future salary and wage increases. The obligation under these benefit plans is accrued based on projected benefits as the employees render services necessary to earn the future benefits. (h) Government transfers: Restricted transfers from governments are deferred and are recognized as revenue in the year in which the related expenditures are incurred. Unrestricted transfers are recognized as revenue when received. (i) Fines and fees revenue: The Library recognizes fines and fees as revenue upon receipt. ( j) Use of estimates: The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant areas requiring the use of management estimates relate to the determination of accrued sick and retirement benefits and useful lives of tangible capital assets. Actual results could differ from those estimates. These estimates are reviewed periodically, and, as adjustments become necessary, they are reported in earnings in the year in which they become known.

3. Temporary investments: The temporary investments balance is comprised of GICs earning interest at 1.20% (2013 – 1.25%) and maturing on March 31, 2015.

City of Coquitlam 2014 Annual Report

75

Coquitlam Public Library Board

Notes to Financial Statements (continued) Year ended December 31, 2014 4. Tangible capital lease obligations: 2015 $ 2016 2017 2018

21,508 19,950 8,778 520

Total minimum lease payments Less amount representing interest (at Municipal Finance Authority

borrowing rate of 1.00% to 2.25%)

50,756

Present value of minimum capital lease payments $

46,171

(4,585)

5. Tangible capital assets: Balance, Balance, December 31, December 31, Cost 2013 Additions Disposals 2014 Automotive $ 47,385 $ - $ 17,148 $ 30,237

Leasehold improvements 81,817 - - 81,817

Library collections 2,063,066 319,981 375,970 2,007,077

Security equipment 123,811 - - 123,811

Computer equipment 426,690 104,935 - 531,625

Furniture and equipment 1,126,516 27,126 - 1,153,642

Assets under capital lease 153,566 - - 153,566

76

City of Coquitlam 2014 Annual Report

$ 4,022,851

$ 452,042

$ 393,118 $ 4,081,775

Coquitlam Public Library Board

Notes to Financial Statements (continued) Year ended December 31, 2014

5. Tangible capital assets (continued): Balance, Balance,

December 31, Amortization December 31,

Accumulated Amortization 2013 Disposals expense 2014

Automotive $ 38,115 $ 17,148 $ 3,033 $ 24,000

Leasehold improvements 73,396 - 8,421 81,817

Library collections 1,252,129 375,970 330,277 1,206,436

Security equipment 75,033 - 23,682 98,715

Computer equipment 330,515 - 32,239 362,754

Furniture and equipment 344,246 - 125,154 469,400

Assets under capital lease 82,380 - 17,226 99,606

$ 2,195,814

$ 393,118

Net book value December 31, 2013

$ 540,032 $ 2,342,728

Net book value December 31, 2014

Automotive $ 9,270 $ 6,237

Leasehold improvements 8,421

Library collections 810,937 800,641

Security equipment 48,778 25,096

Computer equipment 96,175 168,871

Furniture and equipment 782,270 684,242

Assets under capital lease 71,186 53,960

$ 1,827,037 $ 1,739,047

City of Coquitlam 2014 Annual Report

77

Coquitlam Public Library Board

Notes to Financial Statements (continued) Year ended December 31, 2014 6. Accumulated surplus: Accumulated surplus consists of fund surplus and reserve funds as follows:

2014

2013

Surplus:

Invested in tangible capital assets $ 1,692,876 $ 1,754,083 Operating 871,305 789,955 Capital 115,052

$ 2,679,233 $ 2,544,038

7. Grant revenue:

2014 budget

2014

2013

City of Coquitlam $ 4,596,764 $ 4,596,763 $ 4,492,307 Province of British Columbia 264,503 276,288 264,503 Community Service Clubs 9,500 34,070 7,887

$ 4,870,767 $ 4,907,121 $ 4,764,697

78

City of Coquitlam 2014 Annual Report

Coquitlam Public Library Board

Notes to Financial Statements (continued) Year ended December 31, 2014 8. Pension Plan: The Library and its employees contribute to a jointly trusteed pension plan (the Plan). The Board of Trustees, representing plan members and employers, is responsible for overseeing the management of the Plan, including the investment of 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 182,000 active members and approximately 75,000 retired members. Active members include approximately 36,000 contributors from local governments.

Every three years an actuarial valuation is performed to assess the financial position of the Plan and the adequacy of plan funding. The most recent valuation as at December 31, 2012 indicated a $1,370 million funding deficit for basic pension benefits. The next actuarial valuation will be performed 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 Library paid $262,000 (2013 – $258,000) for employer contributions to the Plan in 2014. Employees paid $210,000 (2013 – $200,000) for employee contributions to the Plan in 2014.

9. Employee future benefits: The Library provides benefits for sick leave and certain other retirement benefit arrangements to its employees.

All employees accumulate sick leave entitlement on a monthly basis and can only use this entitlement for paid time off under certain circumstances. Retirement benefit payments represent the Library’s share of the cost to provide employees with various benefits upon retirement. The accrued benefit obligation and the net periodic benefit cost were estimated by an actuarial valuation completed in February 2013.

The total expenses recorded in the financial statements in respect of obligations under these plans amount to $32,800 (2013 – $38,900).

City of Coquitlam 2014 Annual Report

79

Coquitlam Public Library Board

Notes to Financial Statements (continued) Year ended December 31, 2014 9. Employee future benefits (continued):

Information about liabilities for the Library’s employee benefit plans is as follows:

Sick

leave

Retirement benefit payments

2014 Total

2013 Total

Accrued benefit obligation:

Balance, beginning of year $ 143,500 $ 72,500 $ 216,000 $ 238,000

Current service cost 9,200 5,000 14,200 19,300 Interest cost 5,700 3,000 8,700 8,500 Benefits paid (25,300) (5,700) (31,000) (35,500) Actuarial gain 10,400 3,100 13,500 (14,300)

Benefit obligation, end of year Unamortized actuarial loss

Accrued sick leave and retirement benefit liability

143,500 (56,200)

$ 87,300

77,900 (2,800)

$ 75,100

221,400 (59,000)

216,000 (55,400)

$ 162,400 $ 160,600

The accrued sick leave and retirement benefit liabilities are included as part of accrued salaries and benefits on the statement of financial position.

The significant actuarial assumptions adopted in measuring the Library’s accrued benefit obligation are as follows:

80

City of Coquitlam 2014 Annual Report

2014

2013

3.2% 2.5% 2.5%

4.1% 2.5% 2.5%

Discount rates Expected future inflation rates Expected wage and salary increases

Coquitlam Public Library Board

Notes to Financial Statements (continued) Year ended December 31, 2014 10. Commitment: The Library is a member of InterLINK, which provides interlibrary loans for Coquitlam Public Library patrons from 16 other participating libraries in other municipalities. The Library has a contractual agreement with InterLINK to pay the annual assessment fee, which, for 2014, was $60,912 (2013 – $66,455).

11. Budget data: The budget data presented in these financial statements is based upon the 2014 budget developed by management.

The 2014 budget was approved by the Board on January 22, 2014. The chart below reconciles the budget developed by management to the budget figures reported in these financial statements.

Revenues: Operating budget $ 4,992,467 Expenses: Operating 4,565,467 Capital 427,000

4,992,467

Annual surplus per budget

-

Add items included in expenses above and tangible capital

assets on the statement of financial position

427,000

427,000

Annual surplus per statement of operations

$

City of Coquitlam 2014 Annual Report

81

For the year ending December 31, 2014

Financial Statements of Coquitlam Optical Network Corporation (QNet) Prepared by: The Financial Services Department of the City of Coquitlam

City of Coquitlam 2014 Annual Report

83

Coquitlam Optical Network Corporation (QNet)

Independent Auditors’ Report To the Board of Directors of Coquitlam Optical Network Corporation (QNET)

We have audited the accompanying financial statements of Coquitlam Optical Network Corporation (QNet), which comprise the statement of financial position as at December 31, 2014, the statements of operations, changes in net debt and cash flows for the year then ended, and notes, comprising a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility Our responsibility is to express an opinion on these 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 an audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.

The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity’s preparation and fair presentation of the 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 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 financial statements present fairly, in all material respects, the financial position of Coquitlam Optical Network Corporation (QNet) as at December 31, 2014, and its results of operations and the changes in its net debt and its cash flows for the year then ended in accordance with Canadian public sector accounting standards.

Chartered Accountants March 24, 2015 Burnaby, Canada

84

City of Coquitlam 2014 Annual Report

Coquitlam Optical Network Corporation (QNet)

Statement of Financial Position December 31, 2014, with comparative information for 2013

2014

2013

4,883 $ 61,856

1,845 58,412

Financial assets Cash

$ Accounts receivable

66,739 60,257 Financial liabilities Accounts payable and accrued liabilities 19,590 Due to City of Coquitlam (note 4) 5,171,033

80,574 5,119,697

5,190,623 5,200,271 Net debt (5,123,884) (5,140,014)

Non financial assets Tangible capital assets (note 3) 3,829,354 Prepaid expenses 5,347

3,796,990 4,841

3,834,701 3,801,831 Accumulated deficit (1,289,183) (1,338,183) Accumulated deficit is comprised of: Share capital 1 1 Accumulated deficit (1,289,184) (1,338,184)

$ (1,289,183) $ (1,338,183)

Economic dependence (note 6) See accompanying notes to financial statements.

Approved on behalf of the Board:

________________________________ Pete Steblin, City Manager & QNet Board Chair City of Coquitlam 2014 Annual Report

85

Coquitlam Optical Network Corporation (QNet)

Statement of Operations Year ended December 31, 2014, with comparative information for 2013

2014 Budget (note 7)

2014

2013

Revenue: Lease $ 383,100 $ 395,159 $ 335,580

Installation fees 6,400 8,800 11,200

Power cost recovery 28,000 30,076 28,349 Other - 25 417,500 434,060 375,129 Expenses:

General and administrative 181,226 168,158 166,874 Amortization - 135,973 132,966

Loss on disposal of tangible capital assets - 3,224

Interest (note 4) - 77,705 76,586 181,226 385,060 376,426 Annual surplus (deficit)

236,274

49,000

(1,297)

Accumulated deficit, beginning of year (1,338,184) (1,338,184) (1,336,887) Accumulated deficit, end of year See accompanying notes to financial statements.

86

City of Coquitlam 2014 Annual Report

$ (1,101,910)

$ (1,289,184)

$ (1,338,184)

Coquitlam Optical Network Corporation (QNet)

Statement of Changes in Net Debt Year ended December 31, 2014, with comparative information for 2013

Annual surplus (deficit) for the year

2014 Budget (note 7) $ 236,274

2014

$

Acquisition of tangible capital assets (151,880) Amortization of tangible capital assets - Loss on disposal of tangible capital assets - Increase in prepaid expense Change in net debt

84,394

49,000

$

2013

(1,297)

(171,561) 135,973 3,224

(506)

(113,879) 132,966 (154)

16,130

17,636

Net debt, beginning of year (5,140,014) (5,140,014) (5,157,650) Net debt, end of year

$ (5,055,620)

$ (5,123,884)

$ (5,140,014)

See accompanying notes to financial statements.

City of Coquitlam 2014 Annual Report

87

Coquitlam Optical Network Corporation (QNet)

Statement of Cash Flows Year ended December 31, 2014, with comparative information for 2013

2014

2013

Cash provided by (used in): Operations:

Annual surplus (deficit) $

Amortization of tangible capital assets, an item

not involving cash

Loss on disposal of tangible capital assets

Change in non-cash operating working capital balances: Prepaid expenses Accounts receivable

Accounts payable and accrued liabilities

City of Coquitlam 2014 Annual Report

135,973 3,224 (506) (3,444) (60,984)

(1,297) 132,966 (154) 404,424 (205,908)

Net change in cash from operating activities

123,263

330,031

Capital activities:

Cash used to acquire tangible capital assets

(171,561)

(113,879)

Financing activities:

Increase (decrease) in amount due to the City of Coquitlam

51,336

(218,497)

Net change in cash

3,038

(2,345)

Cash, beginning of year

1,845

4,190

Cash, end of year

4,883 $

1,845

See accompanying notes to financial statements.

88

49,000 $

$

Coquitlam Optical Network Corporation (QNet)

Notes to Financial Statements Year ended December 31, 2014 1. Operations: Coquitlam Optical Network Corporation (QNet) (the “Company”) was incorporated on November 12, 2008 under the British Columbia Business Corporations Act. The Company’s business involves providing open access to optical fibre networks. It is a wholly municipal-owned subsidiary of the City of Coquitlam and operates its business within the City of Coquitlam municipality boundaries. The Company is a local government corporation and is exempt from income taxes.

2. Significant accounting policies: These financial statements have been prepared by management in accordance with Canadian public sector accounting standards: (a) Revenue recognition: The Company recognizes revenue when services are provided to customers, the price is fixed or determinable, and collectability is reasonably assured. (b) Non-financial assets: Non-financial 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. (i) Tangible capital assets: Tangible capital assets have useful lives extending beyond the current year and are recorded at cost, which includes amounts that are directly attributable to acquisition, construction, development or betterment of the asset. The cost, less residual value of the tangible capital assets, is amortized on a straight-line basis over their estimated useful lives as follows: Asset Software

Data centre equipment

Building entrance – civil

Building entrance – fibre

Arterial fibre – civil

Arterial fibre – fibre

Leasehold improvements and leased equipment

Rate

8 years 5 – 25 years 85 years 25 years 85 years 25 years over term of lease

Any assets under construction are not amortized until the asset is available for productive use.

Leases that transfer substantially all of the benefits and risks incidental to ownership of property are accounted for as leased tangible capital assets. Amortization is provided over the term of the lease.

City of Coquitlam 2014 Annual Report

89

Coquitlam Optical Network Corporation (QNet)

Notes to Financial Statements (continued) Year ended December 31, 2014 2. Significant accounting policies (continued): (ii) Impairment of tangible capital assets: Tangible capital assets are written down when conditions indicate that they no longer contribute to the Company’s ability to provide goods and services, or when the value of future economic benefits associated with the tangible capital assets is less than their net book value. The net writedowns are accounted for as expenses in the statement of operations. (c) Use of estimates: The preparation of financial statements requires management to make estimates and assumptions that could affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Significant areas requiring the use of management estimates relate to the determination of allowance for doubtful accounts, useful lives for amortization of tangible capital assets, and provisions for contingencies. Actual results could differ from those estimates. (d) Functional and object reporting: The operations of the Company are comprised of a single function, optical fibre networks operations. As a result, the expenses of the Company are presented by object in the statement of operations.

90

City of Coquitlam 2014 Annual Report

Coquitlam Optical Network Corporation (QNet)

Notes to Financial Statements (continued) Year ended December 31, 2014 3. Tangible capital assets: Leasehold Building Building Arterial Arterial improvements

Data centre entrance entrance fibre fibre and leased Assets under December 31, 2014 Software equipment - fibre - civil - civil - fibre equipment construction

Cost:

Balance, beginning of year $

Additions, net of transfers

Disposals

84,050 $ 933,874 $ 223,147 $ 268,456 $ 1,669,758 $ 71,343 $ 932,876 $ - 11,971 19,623 12,039 (61,787) 141,573 - - (5,228) - - - - -

Balance, end of year

84,050 940,617 242,770 280,495 1,607,971

Accumulated amortization: Balance, beginning of year

58,997 209,442 24,767 10,301 51,332 Amortization expense 10,653 56,763 8,822 3,214 19,593

Disposals - (2,004) - - -

212,916

932,876

10,164 13,597 -

48,219 23,331 -

Total

26,708 $ 4,210,212 48,142 171,561 - (5,228) 74,850 4,376,545

- - -

413,222 135,973 (2,004)

-

547,191

69,650 264,201 33,589 13,515 70,925 23,761 71,550 Balance, end of year

Net book value, end of year $ 14,400 $ 676,416 $ 209,181 $ 266,980 $ 1,537,046 $ 189,155 $ 861,326 $

74,850 $ 3,829,354

Net book value, beginning of year $ 25,053 $ 724,432 $ 198,380 $ 258,155 $ 1,618,426 $

26,708 $ 3,796,990

61,179 $ 884,657 $

City of Coquitlam 2014 Annual Report

91

Coquitlam Optical Network Corporation (QNet)

Notes to Financial Statements (continued) Year ended December 31, 2014 3. Tangible capital assets (continued): Leasehold Building Building Arterial Arterial improvements

Data centre entrance entrance fibre fibre and leased Assets under December 31, 2013 Software equipment - fibre - civil - civil - fibre equipment construction

Cost:

Balance, beginning of year Additions, net of transfers

$

84,050 $ 923,196 $ 200,517 $ 264,885 $ 1,416,716 $ - 10,678 22,630 3,571 253,042

56,776 $ 932,876 $ 217,317 $ 4,096,333 14,567 - (190,609) 113,879

Balance, end of year 84,050 933,874 223,147 268,456 1,669,758

Accumulated amortization: Balance, beginning of year 48,766 142,178 16,433 7,182 33,500

Amortization expense 10,231 67,264 8,334 3,119 17,832

71,343

932,876

7,310 2,854

24,887 23,332

- -

280,256 132,966

10,164

48,219

-

413,222

Balance, end of year

58,997

209,442

24,767

10,301

51,332

26,708 4,210,212

Net book value, end of year $ 25,053 $ 724,432 $ 198,380 $ 258,155 $ 1,618,426 $

61,179 $ 884,657 $

Net book value, beginning of year $ 35,284 $ 781,018 $ 184,084 $ 257,703 $ 1,383,216 $

49,466 $ 907,989 $ 217,317 $ 3,816,077

There was no writedown of tangible capital assets during the year (2013 – nil).

92

Total

City of Coquitlam 2014 Annual Report

26,708 $ 3,796,990

Coquitlam Optical Network Corporation (QNet)

Notes to Financial Statements (continued) Year ended December 31, 2014 4. Due to the City of Coquitlam: The amount due to the City of Coquitlam at December 31, 2014 of $5,171,033 (2013 – $5,119,697) is related to funding for the purchase of tangible capital assets and funding for operating expenses of the Company. These transactions are in the normal course of operations and are measured at the exchange amount, which is the amount of consideration negotiated and agreed to by the related parties.

During 2011, the Company entered into a lease agreement to lease leasehold improvements and equipment from the City of Coquitlam until December 15, 2051. Included in the amount due to the City of Coquitlam is $932,876 (2013 – $932,876) for the use of leasehold improvements and equipment for the term of the lease.

Amounts due to the City of Coquitlam are unsecured, bear interest at 1.54% (2013 – 1.50%) and have no set terms of repayment.

5. Related-party transactions During the year, certain employees of the City of Coquitlam performed administrative services for the Company, including purchasing, accounting, clerical and other operational-type services. The Company was not charged by the City of Coquitlam for these services for the year ended December 31, 2014 (2013 – nil). Management costs and direct infrastructure services related to the Company of $48,351 (2013 – $22,839) were charged from the City of Coquitlam and are shown as expenses in the financial statements.

6. Economic dependence: The Company’s operations are currently partially funded by the City of Coquitlam, and accordingly, future operations of the Company are dependent upon the continued financial support of the City of Coquitlam for the foreseeable future.

City of Coquitlam 2014 Annual Report

93

Coquitlam Optical Network Corporation (QNet)

Notes to Financial Statements (continued) Year ended December 31, 2014 7. Budget data: The budget data presented in these financial statements is based upon the 2014 budget approved by the Board of Directors on March 25, 2014. Amortization was not contemplated on development of the budget and, as such, has not been included. The chart below reconciles the approved budget figures reported in these financial statements.

Revenue: Operating budget $ Expenses: Operating budget

94

City of Coquitlam 2014 Annual Report

417,500 333,106

Annual surplus per approved budget

84,394

Add items included in expenses above and tangible capital

assets on the statement of financial position

151,880

236,274

Annual deficit per statement of operations $

Statistical Analysis

City of Coquitlam 2014 Annual Report

95

Statistical Analysis

Revenues Last Five Fiscal Years Comparison

2010 2011 2012 2013 2014

Taxation $ 117,223,648 $ 121,758,535 $ 126,365,623 $ 133,104,670 $ 140,092,846 Fees, Rates &

Service Charges 56,483,288 60,909,149 71,714,012 80,056,487 69,060,029 Developer’s Contribution 30,317,356 34,705,276 27,248,902 36,209,937 22,351,791 Municipal Land Sales 3,534,208 9,423,840 15,704,619 1,265,221 15,409,337 Grants & Grants in Lieu 23,157,080 14,393,696 17,083,907 8,778,184 9,286,386 Cost Recoveries 8,178,079 7,826,679 9,585,890 9,386,539 8,005,187 Casino Revenue 8,366,662 7,422,836 7,556,341 6,730,968 6,442,834 Investment Income 3,377,697 4,216,578 4,438,210 5,858,896 5,129,766 Penalties & Interest on Taxes $918,913 1,008,513 1,047,459 1,111,029 1,167,074

Total Revenue $ 251,556,931 $ 261,665,102 $ 280,744,963 $ 282,501,931 $ 276,945,250

City of Coquitlam 2014 Annual Report

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Statistical Analysis

Expenses Last Five Fiscal Years Comparison

2010

2011

2012

2013

2014

Analysis by Function Police, Fire & Other

Protection $ Water, Sewer, & Solid Waste Parks, Recreation

and Culture Engineering General Government Planning & Development Evergreen Line Other

47,215,464 $ 49,283,597 $ 52,958,035 $ 50,375,717 52,904,205 54,698,696

54,266,851 $ 56,459,187

56,385,569 55,437,872

38,680,691 26,147,853 14,865,227 5,643,467 - -

45,767,039 28,317,525 16,143,203 6,476,006 - -

46,852,652 28,443,480 16,517,296 6,604,996 -

Total Expenses by Function $ 182,928,419

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City of Coquitlam 2014 Annual Report

41,162,082 27,637,309 14,995,100 5,867,803 - -

$ 191,850,096

43,271,870 26,394,940 15,901,449 6,370,912 15,411,632 -

$ 215,007,534

$ 207,429,811

$ 210,241,865

Expenses Last Five Fiscal Years Comparison

2010

2011

2012

2013

2014

Analysis by Object Wages, Salaries and Benefits $ 70,564,212 $ 72,863,525 $ 78,280,856 $ 82,598,738 $ 86,202,279 Supplies and Equipment 44,249,925 47,856,089 47,537,873 49,862,224 48,692,025 Contracted Services 38,043,763 37,394,804 39,087,123 38,799,325 36,614,364 Amortization 27,846,055 30,697,513 31,787,487 33,592,911 35,285,437 Debt Interest Charges 1,651,676 1,838,050 1,731,143 1,471,882 1,327,007 Other 453,451 435,808 424,440 375,150 1,318,850 Professional Development 119,337 764,307 746,980 729,581 801,903 Contribution to Evergreen Line $ - $ - $ 15,411,632 $ - $ Total Expenses by Object

$ 182,928,419

$ 191,850,096

$ 215,007,534

$ 207,429,811

$ 210,241,865

City of Coquitlam 2014 Annual Report

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Statistical Analysis

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Statistical Analysis

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City of Coquitlam 2014 Annual Report

103

Statistical Analysis

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City of Coquitlam 2014 Annual Report

Coquitlam Residents by Marital Status, 1996 - 2011

Household Income in Coquitlam - 2005 & 2010 (Source: Statistics Canada)

(Source: Statistics Canada, 2011 Census) 2005

2010

35%

Marital Status

32%

30% 25%

24% 19%

20% 15%

16%

18% 15%

15%

13% 13%

13%

10%

11% 11%

5%

1996

2001

2006

2011

Legally Married

55%

54%

53%

59%

Never Married

30%

31%

32%

29%

Separated

3%

3%

3%

2%

Divorced

7%

7%

7%

5%

Widowed

5%

5%

5%

4%

0% Under $20,000

$20,000 $39,999

$40,000 $59,999

$60,000 $79,999

$80,000 $99,999

$100,000 & above

Top Ten Languages Spoken at Home in Coquitlam

Coquitlam’s Population by Age as a Percentage of Population

(Source: Statistics Canada, 2011 Census)

(Source: Statistics Canada 2006 & 2011 Censuses) 20.0% 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0%

2006 17.4% 16.4%

16.6% 14.7%

15.3% 14.4%

17.7% 17.6%

0-14 years

15-24 years

25-34 years

Language 12.8% 11.9% 10.9% 10.9%

11.2% 12.2%

35-44 years

45-54 years

2011

2011

55-64 years

65+ years

Number

%

English

84,920

72.0%

Korean

6,210

5.3%

Mandarin

4,640

3.9%

Cantonese

4,350

3.7%

Persian (Farsi)

4,275

3.6%

Chinese (not otherwise specified)

3,560

3.0%

Spanish

1,115

0.9%

Russian

1,105

0.9%

Tagalog (Pilipino, Filipino)

940

0.8%

Romanian

615

0.5%

Note: 100% data for the first time in the 2011 Census.

Definition of Home Language: Refers to the language spoken most often or on a regular basis at home.

City of Coquitlam 2014 Annual Report

105

Statistical Analysis Principal Employers in Coquitlam (source: City of Coquitlam) (Over 150 employees reported)

Business Type Education. . . . . . . . . . . . . . . . . . . .

Education . . . . . . . . . . . . . . . . . . . .

Local Government. . . . . . . . . . . . . . .

Retail Sales . . . . . . . . . . . . . . . . . . .

Retail Sales . . . . . . . . . . . . . . . . . . .

Casino . . . . . . . . . . . . . . . . . . . . . .

Manufacturer. . . . . . . . . . . . . . . . . .

Restaurant Sales. . . . . . . . . . . . . . . .

Restaurant Sales. . . . . . . . . . . . . . . .

Warehouse . . . . . . . . . . . . . . . . . . .

Manufacturer. . . . . . . . . . . . . . . . . .

Retail Sales . . . . . . . . . . . . . . . . . . .

Retail & Wholesale Sales / Warehouse . . . . . . . . . . . . . . . . . .

Manufacturer. . . . . . . . . . . . . . . . . .

Retail Sales . . . . . . . . . . . . . . . . . . .

Golf Courses . . . . . . . . . . . . . . . . . .

Warehouse . . . . . . . . . . . . . . . . . . .

Retail Sales . . . . . . . . . . . . . . . . . . .

Theatre / Concert Hall. . . . . . . . . . . .

Contractor / Industrial Services . . . . . .

Retail Sales . . . . . . . . . . . . . . . . . . .

Industrial Services . . . . . . . . . . . . . . .

Retail Sales . . . . . . . . . . . . . . . . . . .

Retail Sales . . . . . . . . . . . . . . . . . . .

Retail Sales . . . . . . . . . . . . . . . . . . .

Name School District #43 Douglas College City of Coquitlam The Real Canadian Superstore (2 stores) Ikea Hard Rock Casino Factors Group of Nutritional Companies Inc McDonald’s Restaurants (6 restaurants) Tim Hortons and Wendy’s (6 restaurants) WN Pharmaceuticals Ltd. Superior Poultry Processors Ltd Canada Safeway (2 stores) Leavitt Machinery Jack Cewe Ltd. Shoppers Drug Mart (5 stores) Westwood Plateau Golf & Country Club McKesson Canada Home Depot Canada Cineplex SilverCity (Theatres) Waste Management of Canada Corporation Value Village Smithrite Disposal Ltd Pricesmart Foods T & T Supermarket Sears Canada Inc

Note: Information on employment numbers (over 150) provided by the business licence applicant and may or may not be the most current.

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City of Coquitlam 2014 Annual Report

Principal Corporate Taxpayers (Source: City of Coquitlam Financial Services Department)

Corporate taxpayers over $250,000

Registered Owner Primary Property Taxes Levied

Pensionfund Realty Ltd. Shopping Centre $6,799,732 Loblaw Properties West Inc. Shopping Centre $3,157,178 Great Canadian Casinos Inc. Stores & Service Commercial $1,471,540 BC Hydro & Power Authority Electric Power Systems $1,394,367 Ikea Properties Ltd. Miscellaneous $1,305,471 Sun Life Assurance Co. of Canada Shopping Centre $1,287,963 Pinetree Village Holdings Inc. Shopping Centre $1,245,607 Fraser Mills Properties Ltd. Industrial $1,095,199 Burquitlam Building Ltd. Shopping Centre $839,943 Sunnyland Enterprises Ltd. Shopping Centre $814,318 Lafarge Canada Inc. Concrete Mixing Plants $793,413 655870 BC Ltd. Storage & Warehousing $738,694 FortisBC Energy Inc. Gas Distribution Systems $730,604 Brenhill Developments Ltd. Theatre Buildings $679,370 South Coast BC Transportation Auth.

Parking Lot $626,855 Spire LP (Lougheed Super Centre) Lumber Yard or Building Supplies $611,950 Busung Investment Co. Ltd. Shopping Centre $556,835 Home Depot Holdings Inc. Stores & Service Commercial $551,606 Double Beta Holdings Ltd. Vacant Land $546,842 No. 186 Seabright Holdings Ltd. Warehouse Storage $468,102 Jack Cewe Ltd. Gravel Pit $464,112 Barnes Wheaton (Surrey) Ltd. Shopping Centre $440,367 WKR Inc. Storage & Warehousing $438,968 Standard Life Assurance Co. of Canada Storage & Warehousing $436,910 Kebet Holdings Ltd. Storage & Warehousing $435,598 West Mall Hotels Ltd. Hotel $421,370 Aragon (Austin Station) Properties Ltd. Shopping Centre $421,067 Coquitlam Inn & Convention Centre Ltd. Motel & Auto Court $420,645 Henderson Civic Centre Ltd. Shopping Centre $381,486 SDLP Snowcat Ltd. Vacant Land $369,796

Registered Owner Primary Property Taxes Levied

Viam Holdings Ltd. Strata Apartment $367,588 424116 BC Ltd. Apartment (High Rise) $362,503 B U K Investments Ltd. Auto. Paint Shop, Garage, Etc. $361,399 Investors Group Trust Co. Ltd. Shopping Centre $352,870 Toys R Us (Canada) Ltd. Retail Sales $351,337 Unimet Investments Ltd. Developer $348,148 Honeysuckle Developments Inc. Manufacturing Operation $347,526 Provincial Rental Housing Corp. Detached Housing SFD $346,468 Sony of Canada Ltd. Storage & Warehousing $334,107 ONNI Development (Glen Drive) Corp.

Stores & Offices $328,349 Pacific Reach Home Furnishings Stores & Service Commercial $324,824 Boma Industries Ltd. Storage & Warehousing $324,387 0854995 BC Ltd. Warehouse, Storage $323,911 Crown Provincial Gravel Pit $316,604 Mason Investments Ltd. Strata Warehouse $310,497 Concert Cottonwood Lands Ltd. Multi-Family Apartment Block $308,167 Apollo Sheet Metal Holdings Ltd. Storage & Warehousing $304,784 Coca-Cola Refreshments Canada Storage & Warehousing $304,781 Domtar Inc. Miscellaneous & Industrial $303,787 John Volken Foundation Inc. Warehouse Showroom Store $297,388 655868 BC Ltd. Storage & Warehousing $290,992 390200 BC Ltd. Shopping Centre – Neighbourhood $287,954 Petro Canada Convenience Store/Service Station $285,328 925834 Ontario Inc. Stores & Service Commercial $279,427 Robco Enterprises Ltd. Stores & Offices/Mobile Home

Park/Restaurant $275,833 ONNI Holdings Ltd. Storage & Warehousing $272,226 Derik King Edward Property Ltd. Shopping Centre – Neighbourhood $269,583 437909 BC Ltd. Auto. Paint Shop, Garage $265,665 634510 BC Ltd. Warehouse, Storage $261,823 32 Fawcett Investments Ltd. Warehouse Distribution $260,709 Telus Communications (BC) Inc. Telephone $255,040 Balaclava Holdings Ltd. Storage & Warehousing $253,349 City of Coquitlam 2014 Annual Report

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Statistical Analysis Permissive Tax Exemptions (Source: City of Coquitlam Financial Services Department)

The intent of the Taxation Exemption Bylaw is to grant property taxation exemptions to the following categories of land and/or improvements:

Burquitlam Care Society . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $21,753 Nursing homes for seniors Burquitlam Senior Housing Society . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,563 Accommodations for senior residents on limited incomes Colony Farm Community Gardens Society . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,591 Gardening opportunities for community and related activities Community Living Society Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,409 Supports people with disabilities Community Living Society Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,409 Supports people with disabilities Earl Haig Society (Coquitlam). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $9,262 Accommodations for seniors Greater Vancouver Water District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,018 Land leased to the City of Coquitlam Howe Sound Rehabilitation Services Society. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,031 Residential and day program to people with brain injuries, developmental, physical and medical health-care needs Nature Trust of British Columbia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $274 Land conservation organization Nature Trust of British Columbia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,845 Land conservation organization Nature Trust of British Columbia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $28,885 Land conservation organization Nature Trust of British Columbia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $80,053 Land conservation organization Nature Trust of British Columbia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $99,564 Land conservation organization Royal Canadian Legion Branch No. 263 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $29,659 Support for veterans, members and the community Simon Fraser Society for Community Living . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,928 Supports healthy development of all people Simon Fraser Society for Community Living . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,247 Supports healthy development of all people Sisters of the Immaculate Heart of Mary Society. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,554 Education based daycare centre Societe du Foyer Maillard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $14,019 Bilingual services via cultural activities and health-related programs Total

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City of Coquitlam 2014 Annual Report

$ 313,064

This list does not include statutory exemptions provided by the province or the permissive exemptions provided by the City of Coquitlam under section 224 subsection (2) (f) [buildings for public worship] and the City’s properties.

The tax figures provided are estimates only.

City of Coquitlam Financial Services 3000 Guildford Way, Coquitlam, BC, V3B 7N2 604-927-3000 Fax: 604-927-3035 www.coquitlam.ca

CityofCoquitlam