GFOABC Dollars & Sense – March 2024 - Issue 126

ISSUE #126 • MARCH 2024

INSIDE Navigating Tax Rate Changes

PSAB’s New Reporting Model

Accounting for Inclusivity

PRESIDENT’S MESSAGE | RIANNA LACHANCE

INSIDE 2 President’s Message 4 Executive Director’s Message 5 Introducing: Julie Zadan 6 GFOABC Online Forums 8 Update: GFOABC Annual

Conference & Keynote Speaker

10 MFA’s Corner: Shelley Hahn 12 The Costs Beyond the Service 14 Change Management: An Introduction

16 New Vehicles for the Same Budget... or Less

18 One Time Password Fraud 20 3 Key Economic Takeaways for 2024

22 Canadian Growth and its Long-run Effects

24 PSAB’s New Reporting Model 26 Member Spotlight: Talitha Soldera 28 2024 Budget: Fraser Valley Regional District

30 Accounting for Inclusivity 32 Communicating Rate Increases 34 Quarterly Question: Inflationary Pressures

36 Collector’s Corner 37 Thank You Exhibitors 38 Thank You Sponsors 2 | DOLLARS & SENSE PERSPECTIVE

WITH 2024 OFF TO A GREAT START, THE BOARD CONTINUES IMPORTANT WORK ON THE 2023/2024 BOARD PRIORITIES, SUCH AS DEVELOPING KEY EXTERNAL RELATIONSHIPS, ADDRESSING BOARD CONTINUITY, AND DEVELOPING MEMBERSHIP VALUE BY RESPONDING TO KEY AND EMERGING TRENDS THROUGH PROFESSIONAL DEVELOPMENT OPPORTUNITIES. This past December the Board Expression of Interest closed with submissions coming from members across our province willing to serve as volunteers on the board. This ensures board continuity, diversity, and capacity as we look to the next board term.

Member renewals are well underway. Each year communication goes out with membership renewals outlining the GFOABC offering and what’s changing. If you want to know more, I encourage you to reach out, and as always, feel free to provide feedback. Member feedback does have an impact.

The next phase of conference planning has begun. This 2024 Annual Conference in Kamloops is shaping up to be an extraordinary one.

Building on last year’s commitment to brave and open dialogue, the conference theme of ‘Partnering with Purpose’ is bringing together our partners in new ways. Showcasing partnering successes in Kamloops,

the conference will be a celebration of what’s emerging and working in local government finance. Many speakers, presenters and guests are now being confirmed.

Also at the conference, with the completion of the year-long strategic planning and engagement process the 2024-2029 GFOABC Strategic Plan is set to be released. We have heard from our members, and we look forward to releasing this plan when we are together in Kamloops June 5-7, 2024.

I end with well wishes to all of you who are likely knee deep in year end and budget preparation, can’t wait to connect with you all on the other side at the conference.

Rianna Lachance, GFOABC President

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BOARD OF DIRECTORS

DIRECTORS AT LARGE

GFOABC STAFF

Rianna Lachance, President

Julia Aspinall, City of Vancouver

Kala Harris, Executive Director

Julia Aspinall, Vice President

Nicole Gervais, MFABC

Talitha Soldera, Secretary-Treasurer

Elio Iorio, District of North Vancouver

Matt Holme, Manager, Member Services & Communications

Nyla Attiana, Past President

Mike Kennedy, City of Rossland Lenora Lee, KPMG Jeffrey Lovell, City of Port Coquitlam

Julie Zadan, Manager, Professional Development & Education Otto&Fran / www.ottoandfran.com, Graphic Design Services

Charlotte Osborne, City of Cranbrook

MARCH | 2024

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EXECUTIVE DIRECTOR’S MESSAGE | KALA HARRIS

THIS YEAR’S CONFERENCE CONTINUES TO PULL THE THREAD ON THE THEME OF PURPOSE. MANY GFOABC MEMBERS OFTEN TALK ABOUT THE “WHY” THEY LOVE WHAT THEY DO DESPITE THE MANY CHALLENGES LOCAL GOVERNMENTS FACE IN ENSURING THEIR COMMUNITIES REMAIN STRONG AND ROBUST. AT ITS CORE, THE “WHY” IS PURPOSE.

This year we are holding our annual conference in Kamloops and virtually online from June 5—7, 2024. The theme of the conference is Partnering with Purpose: Building a Culture of Innovation.

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The conference will continue to pull the threads of purpose through the lens of partnership and innovation, and value creation. Carol Anne Hilton, International Indigenous Business Leader and Founder of Indigenomics, will provide the opening keynote presentation. Carol Anne’s work and presentation will embody the theme of this year’s conference. In her book, Indigenomics: Taking a Seat at the Economic Table, she writes, “Indigenomics is a new word. It is intended to serve as a tool to insert into national and global consciousness the importance of building understanding of the Indigenous economic and legal relationship and its role within the modern economy today.”

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We have added a Virtual Leadership Series to the conference program. The series will run the week of May 28, 2024, and is open to all conference delegates. It will include a presentation from Chris Graham of TellPeople, who will speak about the importance of telling your story and how to tell it.

The Indigenous Corporate Training group will present Indigenous Relations for Local Governments.

This training will provide an opportunity for members to develop understanding and skills to support respectful and effective interactions with Indigenous Peoples.

The pre-conference program includes two new workshops, Development Cost Charges and Putting ESG into Practice, in addition to our, always in demand, Debt Financing, Municipal Tax Sale, and Regional District Day. The conference program includes something for everyone including Innovative Budgeting Techniques, Economic Update, and Local Government Accountants Can Save the World.

For those joining us in Kamloops, we hope to see you at the Welcome Reception on June 4, 2024, and that you will join us for a Cocktail Reception and Gala Dinner on June 5, 2024, for fellowship, food, and fun!

INTRODUCING Julie Zadan, GFOABC’s New Manager, Professional Development and Education

Hello!

My name is Julie. It’s a pleasure to be introduced to you! I have recently transitioned into the Manager, Professional Development and Education role with the Government Finance Officers Association of BC (GFOABC). I am thrilled to join the GFOABC’s team and supporting our membership who engage in incredibly important work across the province of British Columbia.

Prior to joining the GFOABC team, I was a classroom teacher for nine years. I have worked with three school boards between Alberta and BC. I taught, for a brief period, with School District 62 (Sooke) and prior to that I taught in School District 51 (Grand Forks) for the 2022/2023 school year. Most of my teaching career was spent in Calgary, Alberta from 2015-2022.

I earned a Bachelor of Arts degree from the University of Victoria in 2009, and I completed my Bachelor of Education, at the University of Alberta in 2012. Both experiences have prepared me to work effectively within multiple teams and build relationships with those around me. This is my first professional experience working with local government finance professionals and I am delighted to bring my skill set to this role. I am excited for GFOABC’s upcoming events this year and I am curious to see what’s to come as we move forward.

As Kala and Matts’s wingman I will be responsible for GFOABC’s educational initiatives, the Investing and Financing Forum, program planning, as well as other GFOABC activities. I look forward to the challenges and the opportunities ahead in this role. I am looking forward to meeting many of you at the upcoming Annual Conference in Kamloops in June and I can’t wait to experience Boot Camp and Property Tax 101.

Sincerely,

Kala Harris, Executive Director

MARCH | 2024

Julie

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MEMBER ARTICLE | MATT HOLME

GFOABC ONLINE FORUMS WHY DOES GFOABC PROVIDE THE ONLINE FORUM?

WHAT DO YOU FIND MOST VALUABLE?

GFOABC provides the Online Forum as an information sharing tool for its members. The world of local government finance is becoming increasingly complex.

Technological changes, Indigenous relations, climate change mitigation and ever-evolving accounting standards are just some of the areas where local government finance officers are increasingly focused. There is no existing playbook for many of these responsibilities, and GFOABC members naturally have questions. The Online Forum provides a safe space to share information to ultimately better serve our communities.

As a GFOABC staff person, the Online Forum is a valuable resource in many ways. It acts as a “pulse check” to see what the hot topics are in local government finance, as well as a resource to generate ideas to incorporate into GFOABC’s other work – and hence better serve our members. For example, Justin Brogan’s article on Diversity and Inclusivity, as well as Trevor James’ article on budget communications in this quarter’s newsletter both started as Online Forum discussions. GFOABC has facilitated workshops based on topics that generated significant discussion as well, such as AROs. I am not an accountant by training or profession, so the Online Forum also allows me to learn more about the day-to-day work of local government finance professionals.

IS LOGGING ON PART OF YOUR DAILY ROUTINE? Absolutely. I login into the Online Forum daily to see what is being discussed. As the manager responsible for member services, I feel I need to know what is going on in the world of local government finance. The more information I have, the better I can identify the needs of the membership and create further communication and learning opportunities.

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HOW WILL EXPANDED ENGAGEMENT OF GFOABC MEMBERS HELP US HELP MEMBERS? Expanded engagement in the Online Forum is a priority of GFOABC. The Forum is a great information sharing tool, but if there are limited participants the Online Forum is

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not achieving its full potential. The more members that post and share, the better. One group where we are focused are our regional district members. We would love to have more regional district members post in the Online Forum to best serve them and their needs.

WHAT BEST PRACTICES BY MEMBERS ARE THE MOST VALUABLE?

• If documents or links are shared, they are shared within the discussion thread: Private messages should be avoided. The idea of the Online Forum is that all members can see the responses and hopefully, use the information in their roles. Private messages or one-off emails mean this information is not shared with the membership in its entirety.

There are few best practices to keep in mind when members are posting in the Online Forum: • Keep questions short: This means it is easy for the reader to understand and saves time when a member is scanning discussion topics.

• Clear and concise wording for comments: Convoluted or verbose language should be avoided. Good posts can be short or long, but the key for both is that response is constructed in a way that is easily understandable for the reader. Sometimes bullets points are a good approach for longer answers.

MARCH | 2024

MATT HOLME is the Manager, Member Services and

Communications at GFOABC.

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CONFERENCE UPDATE

LOCAL GOVERNMENT ACCOUNTING & AUDITING WORKSHOP REGISTER NOW THE ANNUAL CONFERENCE TAKES PLACE IN KAMLOOPS AT THE COAST KAMLOOPS HOTEL & CONFERENCE CENTRE JUNE 5-7, 2024!

This year’s theme, “Partnering with Purpose”, will highlight the collaboration of GFOABC with its partners, as well as the important role local government finance professionals play in building relationships and leading their organizations. The Annual Conference program will be meaningful and impactful, with notable keynote speakers and panels covering the latest and most relevant topics.

Learn more here.

The themes of “Partnership, Purpose, and Innovation” will seek to build local government’s capacity for building resilient communities by: • Fostering collaboration among local government finance professionals and their partners; • Building from the collaborative nature of local government finance to exchange and scale what works;

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• Sourcing new ideas and opportunities from BC communities and from outside local government finance.

• Forging relationships and partnerships with community leaders and across sectors; and • Demonstrating the ability of local government finance professionals to deliver strategic value and impact.

The Annual Conference program is being finalized.

Facilitators and sessions will be confirmed in the weeks and months to come.

GFOABC would like to take this opportunity to acknowledge that this conference will take place in the city of Kamloops which is located in Tk’emlúps te Secwépemc territory on the unceded ancestral lands of the Secwépemc Nation.

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KEYNOTE ANNOUNCED | CAROL ANNE HILTON

business, Carol Anne is recognized for her contributions to business and economics, particularly in value creation in Indigenous economies.

CAROL ANNE HILTON is a multiaward-winning business leader with an extensive background in community social and economic development. Carol Anne Hilton is a dynamic national leader with an international MBA from the University of Hertfordshire, England. Carol Anne is of Nuu chah nulth descent from the Hesquiaht Nation on Vancouver Island. With an extensive career in

MARCH | 2024

She is committed to increasing the visibility and inclusion of Indigenous business and economic growth globally. With over 20 years of experience in community, business development and economic design, Carol Anne is focused on multigenerational Indigenous wealth creation. Carol Anne is now focusing her expertise, skills and strategic insights across a broad range of social, ecological and economic projects driving multi-generational impact nationally and globally.

Carol Anne Hilton has led the establishment of a line of thought called #indigenomics- growing from a single hashtag to an entire movement that focuses on the rebuilding and strengthening of Indigenous economies. As the CEO and founder of the Indigenomics Institute and most recently the Global Center of Indigenomics, Carol Anne is an adjunct professor at the Royal

Roads University’s School of Business, Carol Anne serves as a director on the BC Digital Supercluster, the McGill University Institute for the Study of Canada, the Canadian Economic Growth Council, and the BC Emerging Economy Taskforce.

Carol Anne’s work in Canada is driving the narrative of the 100 billion dollar Indigenous economic target. Carol Anne Hilton is convening the tools, leadership, resources, partnerships, institutions, investment to build meaningful innovations in designing and growing Indigenous economies to build national and global impact across time.

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MFA’S CORNER

IT’S BEEN QUITE A JOURNEY IT WAS THE FALL OF 1997. I HAD JUST LEFT MY JOB WITH A NATIONAL ENERGY COMPANY AND TAKEN A POSITION AS THE ACCOUNTING OFFICER FOR THE MUNICIPAL FINANCE AUTHORITY OF BC (MFA). UP UNTIL THIS POINT, IN MY MANY CAREERS (WHICH IS ANOTHER STORY!), I HAD ALWAYS WORKED FOR PROFITMOTIVATED COMPANIES. YOU KNOW, THE ONES THAT VALUED PROFITS OVER PEOPLE. I DECIDED TO TAKE A STEP BACK, BOTH FINANCIALLY AND IN POSITION AS THERE WAS SOMETHING INTRIGUING ABOUT THE MFA. I HAD NO IDEA THE AMAZING THINGS I WOULD BE HELPING TO DEVELOP AND THE GREAT PEOPLE IN LOCAL GOVERNMENT I WOULD MEET, LET ALONE THAT I WOULD BE STAYING 26 YEARS. I AM GRATEFUL TO JIM CRAVEN, THEN CEO, AND STEVE BERNA, THEN CFO, FOR TAKING A CHANCE ON ME AND WELCOMING ME TO WHAT WAS ABOUT TO BE THE BEST JOB I’VE EVER HAD. I WAS SCHOOLED IN THE PHRASE – “HOW CAN I HELP?”.

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It was a different time. The Asian Financial Crisis was in full swing, the Dow closed above 8,000 points for the first time (now 38,694), the S&P 500 reached 929 (now 4,878), an ounce of gold was $290 (now $2,055) and a dollar then would be worth $1.87 today. My, how things have changed! The MFA was a little-known organization with a staff of six, doing great things for local governments and the taxpayers of British Columbia. We continue to do that today with a staff of 19. When I started, MFA had just under $2 billion in Debenture debt outstanding in the capital markets and today we are approaching $10 billion.

We had three investment funds that averaged just under $1 billion and now we have seven funds with assets under administration of $5.4 billion, as well as a very successful high interest saving account product that reaches just under $3 billion at the peak of property tax season. I saw the introduction of new entities to our client base such as Regional Hospital Districts, Greater Vancouver Water and Sewer Districts, ECCOM, CREST, and TransLink with all the complexities that brought.

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I have many MFA career highlights -- contributing to four new investment funds, the creation of the pooled high interest savings account program, developing and managing the commercial paper program for fifteen years, and successfully settling over 100 bond issues to name a few. What brought me the most enjoyment was working with local governments on problem solving, generating different ideas, and always being open to working out a way to get what is needed done. I had the privilege to serve on the Board of the Government Finance Officers Association of BC (GFOABC) for 18 years. I have always placed a high value on coaching and educating and had the opportunity to co-develop the GFOABC Finance Officer Training Program (now known as Boot Camp), which started in 2007. I have also enjoyed participating in the Debt Financing, How Healthy Is Your Local Government, and Treasury Investment Management courses and am looking forward to continuing to participate in delivering those courses. Having never worked in a local government, in 2000 I took the Capilano University Local Government Management Certificate Program. It was during that program that I started to understand the challenges facing those who work in local government. I have been guest lecturing for that same program since 2005.

I want to extend my deepest gratitude for the incredible journey we’ve shared. It has been an honour to work with such wonderful colleagues. As I embark on a new adventure, I carry with me the valuable experience and cherished memories from our time together.

SHELLEY HAHN served as the Chief Operating Officer

of the Municipal Finance Authority of BC (MFA) until March of 2024. During her 26-year tenure she directed the operations of all short-term lending and investment products and oversaw all requests and approvals for financing. The best part of her job was being able to work with clients to obtain financing for capital infrastructure and providing guidance on best practices for investing reserves.

MARCH | 2024

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SPONSOR ARTICLE | SANDRA MAYO

THE COSTS BEYOND THE SERVICE:

THE COST OF RISK

IN LOCAL GOVERNMENT, THE PROVISION OF SERVICES IS CONFINED TO THE ANNUAL BUDGET, QUANTIFIED IN TERMS OF DELIVERY. HOWEVER, THERE ARE CASES WHETHER THE TRUE COST OF DELIVERING THESE SERVICES MAY NOT BE IMMEDIATELY APPARENT.

A hidden cost and an important aspect to consider when creating your budget is the cost of risk. There are inherent risks in everything local government does, and it is impossible to eliminate them all. The cost of risk includes insurance premiums, claim deductibles, and expenses related to preventing and minimizing risks.

Claims vary in frequency and severity. Some may occur more or less frequently than anticipated, while others may be more complex than expected. These factors contribute to the unpredictable cost of risk. Each claim not only incurs a deductible you must pay but also results in information gathering, fact determination, on-site visits, expert opinions, and management feedback. Each of these steps requires time and effort, consuming one of your most valuable resources - staff time. While these may be categorized as administrative costs, they can potentially impede your ability to seize opportunities or pursue other activities, resulting in an opportunity cost.

Have you ever received a request from your insurance provider or legal counsel to defend a claim on your behalf, seeking specific documents such as an inspection checklist for a park area or sidewalk in your community? Finding these documents can often feel like searching for a needle in a haystack—while you know they exist, locating them can be time-consuming and tedious. Or has your local government ever been found liable for a claim due to an inspection policy not being followed, or has an insurer paid a claim to a third party because you were unable to demonstrate compliance with the policy?

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Policies and documented practices play a key role in reducing unexpected costs of risk. To help control the cost of risk, local governments should consider implementing the following: • Records Retention Policy or Management Practice: This should outline how records are stored, labeled, retained, and eventually destroyed. The establishment of these policies or practices helps manage claims efficiently and reduces staff time used to find and provide information.

• Inspection and Maintenance Policies: A proactive approach to policy creation minimizes risks, ultimately saving time, resources, and claims-related costs.

Creating these policies allows you to align service delivery with resources, competing priorities, and the overall budget of your local government. They also help reduce the frequency and severity of claims.

Acknowledging the cost of risk associated with delivering services is important for effective budgeting and resource allocation while well-defined policies and practices play a vital role in reducing overall risk. The absence of these may lead to unanticipated risks, such as reputational risk due to inconsistent service delivery, increased spending on claims and loss of staff time.

MIABC member local governments can contact AskUsAnything@miabc.org for risk management advice and policy resources, including access to Policy Development Toolkits for the ten operational areas where the MIABC has observed the highest number of claims.

SANDRA MAYO CRM, RIMS-CRMP, CBCP is the

MIABC’s Manager of Risk Management Services and brings experience in local government from her previous risk management roles with a large B.C. city.

Sandra uses her skills to assist members with a variety of risk management and loss control challenges, and provides specialized support in business continuity.

MARCH | 2024

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EXHIBITOR ARTICLE | JAMIE BLACK

CHANGE MANAGEMENT: AN INTRODUCTION Our clients’ reaction to and acceptance of change can influence their success as much as their budget, software, or technical aptitude. It’s important to understand the significance and key features of change management.

CHANGE IS A FACT OF LIFE

These initiatives can range in scope and complexity from process improvements to mergers and acquisitions—with timeframes that run the gamut.

As with humans, an organization’s ability to compete, survive, and grow depends on its ability to manage change—internally and externally.

The adaptation, growth, and survival of human beings has long depended on our ability to manage change. Consider the advent of firebuilding or weapon-making, or the rising level of tech savvy required to succeed in the workplace.

CHANGE IS DIFFICULT

ORGANIZATIONAL CHANGE

McKinsey reports that 70 percent of all change initiatives fail. Reasons include:

Change management within an organization involves the activities, functions, and tools it uses to deal with something new. For example, institutions use the tools of training and development to ensure their employees’ sustained competence and efficacy.

Today’s average organization has undergone five significant changes in the past three years— and almost 75 percent of those expect to expand change initiatives over the next three.

Despite the inevitability of change, people are hard-wired to prefer stability over anything new. Known as cognitive bias, this tendency involves subconsciously clinging to a belief system despite finding a better solution.

• Failure to manage employees’ attitudes toward change.

• Lack of awareness of change’s potential benefits.

• Those affected view the change as unfair or punishment.

Employees may also fear: • A shift or surge in duties.

• Losing jobs to automation.

• Revealing weakness/incompetence.

• Loss of control.

An unrealistic timeline or a lack of employee engagement in training can further hinder a change initiative’s success. Unsuccessful initiatives can be costly, as dissatisfied employees are less productive and more likely to resign.

Fortunately, research suggests that employees’ readiness for change can strongly influence their resistance to change. In other words, change is more successful when employees are prepared for it, not surprised by it.

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CHANGE IN THE PUBLIC SECTOR IS ESPECIALLY DIFFICULT Government entities are typically slower to adopt changes than private sector organizations, due to: • Less funding.

• Higher public scrutiny.

• Lack of IT staff/capacity.

• Siloed duties/departments.

For some public sector organizations, slow adoption of technology and process change has led to more expensive and burdensome service provision.

Embracing change means: • Fewer time-consuming, “glitchy” processes.

• Making staff more accessible.

• More efficiently providing help and services to constituents.

Because public sector employees may be among the least comfortable or familiar with change, greater change management support is likely needed in those settings.

TO BE SUCCESSFUL, YOU MUST MANAGE CHANGE Both strategy and effective leadership are critical for successful change.

A strategy provides leaders with steps to guide their team through change, while limiting disruption/ unexpected consequences. The goal may be to change a process or approach, but the key to success is effectively leading people through the change. Read More.

What We Do We help public sector finance, budget, and audit departments select, customize, and implement the best technology for their needs, while streamlining business processes.

Why Choose Us? Our Team • CPAs & tech experts • Budget Book/ACFR/CANFR Award reviewers

Our Experience • 50+ yrs in public sector finance • 30+ yrs in custom solutions • 100+ yrs in IT consulting

Our Results JAMIE BLACK , President, FHB. For more than

30 years, Jamie has analyzed needs, redesigned processes, and implemented custom solutions to help finance professionals across Canada and the US improve efficiency and effectiveness. He is a Canadian Association of Government Finance Officers (CAGFO) board member and a regular trainer/speaker on process automation, internal controls, data analytics, and effective communication.

• 700+ satisfied clients • 1,000+ projects completed • 99.8% client retention rate “FHB understood our goals and objectives and got us operational very quickly. We continue to receive excellent support from them. They go above and beyond…”

Nicole Adams, CGA, Associate Director of Finance, University of the Fraser Valley, BC

MARCH | 2024 www.fhblackinc.com | +1 844 852 5225 | info@fhblackinc.com

SPONSOR ARTICLE | KASH MORGAN

NEW VEHICLES FOR THE SAME BUDGET…OR LESS GOVERNMENT BODIES THROUGHOUT BRITISH COLUMBIA ARE UNDER MOUNTING PRESSURE TO PROVIDE QUALITY COMMUNITY SERVICES WITH INCREASINGLY LIMITED RESOURCES FOR THEIR DEPARTMENTS, INCLUDING PATROL, UNDERCOVER, PUBLIC WORKS, AND CODE ENFORCEMENT. CONSEQUENTLY, GOVERNMENT LEADERS FACE THE CHALLENGE OF FINDING INNOVATIVE WAYS TO DO MORE WITH LESS WHILE MAINTAINING HIGH STANDARDS. With ageing vehicle fleets taking their toll, many local government agencies are learning that working with a professional fleet management company provides flexibility and control over their assets: they cannot only improve the lifecycle of their vehicles but also reduce their total cost of ownership with no impact on their current budget. As a result, government agencies can invest those cost savings in better serving the people who matter most: taxpayers.

FINANCES AND CASH FLOW It’s no secret that older, high-mileage vehicles can be more trouble than they’re worth. Older vehicles often end up being more expensive due to frequent maintenance and reduced fuel economy. Other hidden costs can include administration, taxes, registration, depreciation, insurance, and more. Many municipalities pay cash for light-duty vehicles out of their capital budget to own their fleet, which typically limits their ability to replace vehicles to a small percentage annually. This method often results in vehicles remaining in the fleet past their recommended replacement policies.

By working with a professional fleet management company, a municipality can replace more of its fleet on an annual basis while maximizing savings. Fleet management companies assess reliable forward-looking market data to help government agencies implement the mobility solutions that best meet their needs at the lowest cost to the taxpayer.

TECHNOLOGY AND INNOVATION Industry-leading cost control and reporting capabilities help fleet clients reduce the total cost of ownership, while also improving productivity and providing updates on the latest industry trends.

For example, Enterprise Fleet Management offers telematics solutions that provide fleet operators a comprehensive view of the analytics of each vehicle and driver to help them track and evaluate: • Fuel management strategies.

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YOUR FLEET. OUR EXPERTISE. • Scheduled and preventive maintenance and maintenance alerts.

• Driver performance, accident management, and crash avoidance.

• Employee productivity.

• Data for regulatory compliance.

VEHICLE RESALE

Budgets are tight – but your community is counting on you to keep your fleet moving, day after day. Ensure you have the safest, most reliable, and costefficient vehicles on the road.

YOU WORK FOR THE PEOPLE. LET US WORK FOR YOU .

Resale expertise is an important (and often overlooked) element of reducing fleet expenses. The vehicle replacement process is particularly important for government entities as they have a variety of vehicle types and usages.

A fleet management company with remarketing expertise can help maximize vehicle resale value with a rapid sale process and optimal exposure through multiple channels. As a result, government entities can focus on more important assignments and allow fleet experts to put equity back into their investments.

CUSTOMIZED APPROACH All budgets and fleet needs are different. It’s essential to partner with a company like Enterprise Fleet Management that can provide a customized solution for your agency’s needs. You just might find that you have more control over your fleet costs than you thought – without sacrificing quality or flexibility.

KASH MORGAN is Assistant Vice President of

Partnerships for Enterprise Fleet Management, a full-service vehicle management business and affiliate of Enterprise Mobility. In her role, Morgan is a trusted advisor helping associations and their members by supporting their mobility needs, delivering exceptional value through unparalleled resources and an unwavering focus on members’ priorities.

MARCH | 2024

Get a free Fleet Cost Analysis:

TIMOTHY MCCORMICK | (604) 514-5319 DOLLARS & SENSE PRESPECTIVE | 17

© 2024 Enterprise Fleet Management, Inc. M02276 1/24

EXHIBITOR ARTICLE | DENNIS PARKER

ONE TIME PASSWORD FRAUD: WHAT YOU NEED TO KNOW HOW THE SCAM WORKS It is no secret that fraudsters are constantly looking for new and creative ways to scam people. As bank tactics to protect customers become increasingly sophisticated, so do fraudsters’ methods of taking advantage of customers.

One Time Passwords (OTPs) are automatically generated, single-use passcodes that are used as an additional security measure to authenticate customers.

The security measure works by requiring a user, before gaining access to their account, to provide an OTP which has been sent to the user through a known device (e.g. text message sent to the user’s cell phone or email sent to the user’s email address). OTPs are used as a security measure by many financial institutions and are intended to prevent unauthorized account access, even where a bad actor has otherwise managed to obtain a customer’s login credentials, such as the customer’s username and password.

Fraudsters are now using “OTP Scam Bots” to impersonate organizations and appear as if they are calling or texting the customer from the bank. An OTP Scam Bot will contact a customer stating there was a suspicious login attempt, or a suspicious transaction was detected. They will ask you to login to your online banking and to text them the one-time passcode that you are sent. Meanwhile, the fraudster is attempting to log in to your account and you’ve now provided them the one-time passcode to effectively login, leaving your online banking account at risk of identity theft or financial loss.

WAYS TO PROTECT YOURSELF • Your bank will never call you to ask for personal information. If in doubt, call the number on the back of your card.

• Your bank will never request access to your computer.

• Your bank will never ask you to help with, or transfer money as part of, an investigation.

• Your bank will never try to rush you into doing something.

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• Don’t Assume. Though your device may identify a call or message as coming from your bank, do not assume the caller/message is legitimate. Scammers often use call spoofing technology so that your call display shows the name of a company or financial institution to make you believe their request is authentic. If in doubt, call the number on the back of your card.

• TD Fraud Alerts: If you are a TD customer, sign up for services like TD Fraud Alerts to receive text messages that notify you if TD detects suspicious activity on accounts linked to the service.

ADDITIONAL RESOURCES • Canadian Bankers Association - Beware of One Time Passcode Scams With These tips • Krebs on Security – The Rise of One-Time Password Interception Bots.

DENNIS PARKER is the Vice President, Business Banking Deposits and Cash Management Services, for TD Business Banking. Dennis and his team deliver a wide range of ‘value add services’ to TD’s Commercial Banking customers. During his 30+ years with TD Bank Group, Dennis has held a number of roles in commercial lending and has spent nearly 20 years focusing on Cash Management and Deposit services. He has participated in many industry initiatives which seek to improve the lives of business and retail customers across Canada with new payment opportunities. In his current capacity he is responsible for Product Management and on-going development of industry-leading Deposit and Cash Management Services. These services improve the ability of TD customers to operate their business more efficiently and to maximize the value of their deposit balances.

MARCH | 2024

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EXHIBITOR ARTICLE | YVETTE WU

KEY ECONOMIC TAKESAWAYS FOR 2024 AS GOVERNMENT FINANCE OFFICERS, NAVIGATING THE ECONOMIC LANDSCAPE IS PARAMOUNT TO ENSURING THE FISCAL HEALTH AND STABILITY OF OUR MUNICIPALITIES. WITH EACH PASSING YEAR, NEW CHALLENGES AND OPPORTUNITIES ARISE, SHAPING THE ECONOMIC OUTLOOK AND INFLUENCING FINANCIAL DECISION-MAKING. IN A RECENT WEBINAR WITH BRYAN YU, CHIEF ECONOMIST AT CENTRAL1, WE HAD A CHANCE TO ASK ABOUT THE KEY ECONOMIC TRENDS AND CHALLENGES WE’LL BE FACING IN 2024. BASED ON OUR CHAT, THIS ARTICLE WILL SHARE SOME HIGHLEVEL THINGS TO TAKE NOTE OF AND HIGHLIGHT THE THREE BIGGEST TAKEAWAYS THAT WILL BE CRUCIAL FOR GOVERNMENT FINANCE OFFICERS TO PLAN AROUND.

2024 AT A GLANCE Here are some overarching themes we’re expecting from the economy this year: • It looks like a stagnant year ahead. While a full recession looks unlikely, spending is unlikely to recover quickly and we’re likely to see biggest slowdowns in areas around consumer spending.

• Interest rates are expected to come down, but not immediately. While Bryan and his team project policy rates dropping to 3.5 percent by the end of the year, he believes it will be around summer before those cuts materialize.

1. STRENGTHEN CORE SERVICES AND MAINTAIN A BUFFER FOR RISK The core message from Bryan is that this year will be a time to focus on what works, shore up any loose ends that we need moving forward, and hit pause on the things that can wait. From a budgeting perspective, it’s crucial to consider what investments are critical to maintain an adequate level of service and contribute to long-term value.

Now may not be the time to plan for big projects that require a lot of debt, because even if the market is pricing in some rate cuts, as Bryan says, “Markets can change on a dime.” If you are making big decisions this year, make sure you’re adding enough of a buffer for any potential risk.

Consider holding cash or short-term investment securities like GICs to ensure capital availability as we gather more information about economic developments.

2. LEVERAGING TECHNOLOGY AS A LONG-TERM INVESTMENT Hiring has been tough for many. Bryan spoke about the corporate sector’s hesitancy to lay people off, even if c ash might be tight. This also reflects a theme in the December issue of GFOABC’s Dollars & Sense Perspective newsletter, which identified hiring as a key challenge in many government finance offices. So, how are people

• Inflation is forecasted for 3 percent in the first half of 2024, but the Central Bank anticipates it taking until 2025 to reach its target of 2 percent.

tackling this?

With these factors in mind, let’s examine three key areas that municipal governments need to plan for in 2024.

technological innovations that can support your work.

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One answer is technology. While AI tools like ChatGPT have dominated this conversation, there are various other It might be time to invest in a new ERP or to leverage

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financial tech solutions. The important thing is to invest in productivity enhancing growth. It’s not about replacing people with technology; it’s about integrating technology partners to enhance existing capacity.

Innovative Solutions for Public Sector

3. THE TIME FOR CLIMATE CHANGE PLANNING IS NOW The best time to invest in climate management was yesterday; the second-best time is now. How climate change will affect people will vary based on the location of a municipality, but Bryan stressed the importance of having a plan in place. This news is coupled with recent updates to the Emergency and Disaster Management Act (EDMA), emphasizing the importance of setting aside enough resources for the task, not just this year but as an ongoing item each year moving forward.

FINAL THOUGHTS Economic outlooks are akin to a view from 6,000 feet.

While they can provide insight into what lies ahead, applying them requires a deep understanding of your municipality’s unique situation. The main takeaway is to consider this year is laying the foundation. Only time will tell what 2025 and beyond hold. Today is about preparing to seize opportunities when conditions improve or weather the storm if they don’t.

For further information and links to the full webinar with Bryan Yu, come find us at our blog at at YieldExchange.ca/blog

YVETTE WU is the CEO and co-founder of Yield

Exchange, a digital treasury management platform that simplifies the rate shopping experience by connecting organizations directly to financial institutions for custom and competitive GIC rates. She has over 15 years of experience in banking and strategic consulting, holding previous positions at Vancity. Yvette has been nominated for the RBC Women in Entrepreneur Award and featured in multiple publications like Betakit, and Fast Company.

MARCH | 2024

Public sector clients must contend with cyber threats, climate change, pandemic risks and sociopolitical factors — while also prioritizing talent attraction and retention in a competitive market.

At Aon, we use advanced analytics to address these interconnected challenges — so you can focus on what matters most: managing risk effectively and protecting your assets.

Contact Us Farzad Ershad, RMC, CIP, CAIB Senior Vice President Public Sector Practice, BC +1 604 762 8945 farzad.ershad@aon.ca aon.com

EXHIBITOR ARTICLE | SOHEIL MAHMOODZADEH

CANADIAN GROWTH AND ITS LONG-RUN EFFECTS THE DAY-TO-DAY LIVES OF CANADIANS ARE AFFECTED

BY TOPICS AND POLICY DEBATES OF THE DAY. INTEREST RATES, INFLATION, GOVERNMENT FISCAL RESPONSIBILITY, HOUSING AFFORDABILITY AMONG OTHERS HAVE IMPLICATIONS FOR LIVES OF ORDINARY CITIZENS IN THE SHORT RUN. A TIGHTER MONETARY POLICY WILL HELP SOME CANADIANS, HURTING OTHERS. A PERIOD OF HIGHER THAN TARGET INFLATION RATE BRINGS UNCERTAINTIES, AFFECTING BUSINESSES AND HOUSEHOLDS. A POTENTIAL SUDDEN DOWNTURN NEGATIVELY AFFECTS WORKERS AND BUSINESSES. In the long run however, the collective standards of living of Canadians are affected by only one factor: economic growth.

Comparing the paths of per-capita Gross Domestic Product in the US and Canada shows the consequences of slow growth in Canada over the past decade. Over the past decade the two economies have virtually experienced the same shocks and faced similar policy conundrums.

COVID-19 led to a rapid decline in activity followed by a reopening and recovery in both economies, both faced supply chain problems, rising public debt, inflation, and interest rates, among others.

During the same period and sharing all the above, the real income of an average US citizen has grown by more than 16 percent, whereas an average Canadian is barely more prosperous than a decade ago (less than 1 percent growth). Absent policy reforms increasing incentives for capital formation, business expansion, and productivity growth, this growth differential will be sustained, keeping standards of living stagnated in Canada.

To better understand these costs, note that following the average growth rate of the past decade, GDP percapita will double in the US in 42 years, while Canadians won’t see the same until 855 years have passed!!![1] The stagnation of economic activity has implications for local communities and governments across the nation.

Joblessness, poverty, homelessness, and crime are a few of the important social and economic phenomena that are more likely to be seen when the economy fails to grow.

The fiscal standing of local governments is negatively

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Figure 1: Graph showing US and Canada real GDP growth from 2015

impacted by economic stagnation and its consequences as well. First, governments at all levels (including local governments) will face higher expenditure costs to combat socioeconomic consequences due to the stagnant growth. Second, and more directly, local governments will experience lower growth potential in their income through various sources of taxation (property, incomes, and sales).

The World Bank reports GDP per-capita across countries using a widely used exchange rate (purchasing power parity) and at fixed prices. According to the World Bank, by the end of 2022 real GDP per-capita stood at 67 thousand dollars while Canadian real GDP per-capita was reported at 45 thousand dollars (nearly 33% lower).

[1]

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SOHEIL MAHMOODZADEH obtained his PhD

in Economics from Simon Fraser University in 2015. After spending two years as a member of the research team at the Economics Department of the University of Cambridge in the UK, Soheil joined Canadian Western Bank (CWB) risk group and currently works as the Chief Economist.

DOLLARS & SENSE PRESPECTIVE | 23

SPONSOR ARTICLE | MARTHA JONES DENNING & ANTONELLA RISI

PSAB’S NEW REPORTING MODEL THE PUBLIC SECTOR ACCOUNTING BOARD’S (PSAB) NEW REPORTING MODEL IN SECTION PS 1202, FINANCIAL STATEMENT PRESENTATION, WAS ISSUED IN THE CPA CANADA PUBLIC SECTOR ACCOUNTING (PSA) HANDBOOK ON OCTOBER 2, 2023.

THE NEW REPORTING MODEL – WHAT’S DIFFERENT?

Focused on ensuring the standard is relevant and continues to meet users’ needs, PSAB’s new Reporting Model:

• The statement of financial position was restructured and now includes two categories of liabilities and a third component of net assets or net liabilities.

• builds on the existing one in Section PS 1201;

• The net financial assets or net financial liabilities indicator (formerly known as net debt) has been relocated to its own statement, the statement of net financial assets or net financial liabilities. Its calculation has been refined.

• is consistent with PSAB’s new Conceptual Framework; • ensures an increased understanding of financial statements and the indicators within them; and • provides improved accountability information for users.

To increase the accountability value of financial statements in an understandable way, the following changes have been made to the financial statement package:

• The statement of change in net debt has been removed.

However, an entity has the option to present the change in the indicator on the statement of net financial assets or net financial liabilities.

• The statement of changes in net assets or net liabilities was added: 1. This statement shows a reconciliation of each component of net assets or net liabilities.

2. All revenues and expenses arising in the period are captured in the statement of changes in net assets or net liabilities. The statement’s purpose is to be transparent with respect to those revenues and expenses recognized in surplus or deficit of the period and those recognized directly in net assets or net liabilities. The information presented in the statement of remeasurement gains and losses will now be presented on this statement.

• The statement of cash flow was amended to isolate financing activities to present whether all an entity’s

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other activities combined resulted in the need for cash to be raised through financing activities.

decision trees, illustrative examples, and illustrative financial statements.

• Amended budgets may be presented but only in limited circumstances.

• Specifically review the illustrative financial statements pertaining to local governments found in Appendix I.

The following was also added to Section PS 1202:

• Review the consequential amendments listed in Highlight Summary no. 57 in the PSA Handbook.

• a discussion on going concern that builds on the aspects of longevity of the public sector and going concern in the Conceptual Framework; and • the recognition exclusions related to (1) developed and non-purchased intangibles, (2) Crown lands and natural resources that have not been purchased and (3) art and historical treasures. These were relocated from the superseded Conceptual Framework for consideration in PSAB’s future technical agenda.

As a consequence of approving and issuing Section PS 1202, various sections and guidelines of the PSA Handbook have been withdrawn or amended.

• Access the Basis for Conclusions for Section PS 1202, which explains the rationale for PSAB’s decisions in developing the new reporting model standard.

• Read the plain language documents which include nonauthoritative guidance.

• Watch the webinar outlining the changes and effects of the Reporting Model.

• Consider now if there are any system changes required to implement the new Reporting Model by its effective date.

All amended sections and guidelines include a new transitional paragraph that outlines: • the paragraphs affected;

For more information visit the project’s

• the reason for the amendment(s) (i.e., as a result of issuing Section PS 1202);

website: frascanada.ca/PSAB-ReportingModel

• the effective date (i.e., applicable at the same time as Section PS 1202); and • the transitional provisions (i.e., prior period amounts would need to be restated to conform to the requirements for comparative information in Section PS 1202).

START PREPARING NOW The Reporting Model in Section PS 1202 will be effective for fiscal years beginning on or after April 1, 2026. Earlier adoption is permitted only if the Conceptual Framework is also adopted at the same time. To ensure you are ready: • Access Section PS 1202 (the new Reporting Model) in PSA Handbook.

• Review the guidance provided in the various appendices of Section PS 1202 in the form of application guidance, MARCH | 2024

MARTHA JONES DENNING CPA, CA, is an Associate

Director with Canada’s Public Sector Accounting Board (PSAB). She has developed public sector financial reporting standards for over 30 years, leading projects to create many standards in the CPA Canada Public Sector Accounting Handbook.

ANTONELLA RISI CPA, CA, is an Associate Director

with Canada’s Public Sector Accounting Board (PSAB).

In this role, she supports staff and the work of task forces made up of practitioners and users of financial reports to develop and amend public sector accounting standards.

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MEMBER SPOTLIGHT | TALITHA SOLDERA

TALITHA SOLDERA TALITHA SOLDERA IS THE GENERAL MANAGER, CORPORATE SERVICES AT THE DISTRICT OF NORTH COWICHAN, AS WELL AS A GFOABC BOARD MEMBER. TALITHA HAS BEEN IN LOCAL GOVERNMENT FINANCE FOR 22 YEARS, BEGINNING WITH THE MINISTRY OF MUNICIPAL AFFAIRS. TALITHA ENJOYS SHARING HER EXPERIENCE WORKING IN BOTH REGIONAL DISTRICTS AND MUNICIPALITIES WITH THOSE ATTENDING GFOABC BOOTCAMP EACH YEAR. SHE ALSO ACTIVELY CONTRIBUTES TO ORGANIZATIONS SUPPORTING WOMEN, VOLUNTEERING ON THE BOARD OF THE COWICHAN WOMEN AGAINST VIOLENCE SOCIETY FOR MANY YEARS. TALITHA IS RETIRING LATER THIS YEAR AND SHARES HER EXPERIENCES, ADVICE, AND A FEW ACCOMPLISHMENTS IN THIS QUARTER’S MEMBER SPOTLIGHT.

1. WHAT INITIALLY ATTRACTED YOU TO A CAREER IN ACCOUNTING AND FINANCE, AND MORE SPECIFICALLY – ONE IN LOCAL GOVERNMENT? I have a memory book from when I was young that you put your school picture in. It has a space to write what you want to be when you grow up.

Looking back, I always wrote that I wanted to be a teacher and an accountant. I stayed true to my career path; I have a Bachelor of Education and I am a CPA. My path in local government started completely by accident. I took a temporary posting in the Ministry of Community, Sport and Cultural Development (now the Ministry of Municipal Affairs)

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and found local government finance so interesting that I never left!

2. AS YOUR CAREER PROGRESSED YOU MOVED FROM THE PROVINCE TO LOCAL GOVERNMENT, AND YOU SPENT TIME AT A COUPLE LOCAL GOVERNMENTS. WHAT WERE YOUR BIGGEST LEARNINGS DURING THE TRANSITIONS TO NEW ROLES? Moving from the Province to a small local government was the biggest adjustment for me. I had been at the Province so long that everything was almost automatic. But at the Province there was a lot of theory - putting it into practice was brand new.

The team at the City of Duncan made the transition pretty smooth, they were fantastic to work with and very supportive, I definitely had a lot to learn. When I started working for the regional district, I again had a big learning curve as there are some key differences between regional districts and municipalities.

In the end, my biggest learning is that change is good.

Pushing yourself out of your comfort zone helps you grow and see things from a new perspective and helps you understand that you really can do whatever you set your mind to.

I encourage everyone to be inquisitive, be adventurous and believe in yourself. Life is a journey, make sure you are having fun while you are on it!

3. REFLECTING UPON YOUR WORK, ARE YOU PROUD OF ANY ACCOMPLISHMENTS? WHAT ARE YOU MOST PROUD OF? Honestly, I hope my biggest accomplishment has been helping others learn, grow, and believe in themselves.

If I have helped even one person choose to pursue

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advancement in local government finance as their career path that would be fantastic.

Local government is a team sport, and I am very proud of the teams that I have worked with. At the Province and at each of the local governments I have worked in I have always been part of a team of dedicated hard-working individuals who really care about the impact their work has on people’s lives.

4. WHAT DO YOU FEEL ARE THE PRIMARY CHALLENGES LOCAL GOVERNMENTS FACE IN THE COMING YEARS, AND HOW FINANCE OFFICERS HELP MEET THOSE CHALLENGES IN THEIR ROLE? The rapid pace of change combined with the loss of historical knowledge will be a huge challenge for local governments over the next few years.

There are so many new laws and regulations that affect local governments including the Accessibility Act, Pay Transparency Act, changes to housing density, requirements to meet Provincial development targets, changes to the Emergency Management Act and even changes to accounting standards such as ARO’s and the reporting model. Just keeping up with all the changes and making sure to stay compliant is a daunting task.

At the same time these changes are happening, many people are retiring and taking all the historical knowledge they have amassed with them. Recruitment and retention are very challenging as local government is such a unique field and that makes it even more difficult to find people who can hit the ground running.

Finance Officers are in a unique position to be aware of pretty much everything that happens in local government.

Staying as up to date as possible and participating in things like the GFOABC Online Forum to learn from

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colleagues and share information will assist organizations in meeting those challenges.

5. WHAT ARE SOME THINGS YOU WILL MISS MOST ABOUT WORKING IN LOCAL GOVERNMENT? Mostly I will miss the people. I will miss the dedicated team I work with now at North Cowichan, and all my colleagues across the Province. Local government is one of the only fields where everyone shares, collaborates and is willing to lend a hand. I even found this when I went to the Washington Finance Officers Association conference last fall; a general openness, welcoming attitude, and belief that we are all in this together.

6. WHAT ADVICE WOULD YOU GIVE SOMEONE CURRENTLY WORKING IN LOCAL GOVERNMENT? Be brave. Tell Council the truth even if it isn’t good news.

Only by sharing the full picture with Council can they make good decisions about the future.

Don’t take things personally. Council won’t always take the good advice you give them, that’s ok. It isn’t a reflection on you. Also, taxpayers can at times be pretty vocal when they don’t like a decision. While they may seem angry or upset with you, they are typically upset with a situation.

IF THERE IS SOMEONE IN YOUR ORGANIZATION THAT YOU’D LIKE TO RECOGNIZE IN THE NEXT MEMBER SPOTLIGHT, LET US KNOW. Contact office@gfoabc.ca.

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MEMBER ARTICLE | KELLY LOWNSBROUGH

FVRD’S FINANCIAL PLAN & PUBLIC ENGAGEMENT JOURNEY GETTING THE PUBLIC’S ATTENTION IS DIFFICULT FOR ANY BUSINESS. WE’RE ALL BOMBARDED BY SO MUCH INFORMATION EACH AND EVERY DAY. IT’S PERHAPS EVEN MORE CHALLENGING FOR LOCAL GOVERNMENT, ESPECIALLY WHEN IT COMES TO REGIONAL DISTRICT BUDGETING.

When I joined the Fraser Valley Regional District (FVRD) as CFO, I quickly had to bring myself up to speed on nearly 120 distinct service area budgets and the complex legislative requirements for regional districts. Not only was this 2020 when we were all coping with the effects of the pandemic, but also, financially challenged service areas, multi-month processes, and formal board level approvals at critical junctures contributed to the challenge.

Budgets are the underpinning of an organization; they need to be solid to enable the required services to continue and for new initiatives to be endorsed, in an easy-to-understand plan. As I did my research through reviewing past budgets, current bylaws, and legislation specific to regional districts, questions came to mind about each of the service areas.

What was the service area for? How was it funded?

What was the size of the tax base? What are the risks associated with the budget? What is the current year’s budget? Are the forecasts completed and meaningful?

What plans will be proposed for the upcoming year and how much money does each service area hold on account?

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If we were going to propose a Financial Plan to the Board of Directors, this information needed to be clear, concise, and presented in plain language. How did the staff, elected officials and the public know all this information and how did they keep it straight? The managers were asked to outline these questions when they created their budget proposals. Who better to tell those stories than the budget owners? Therein began our organizational partnerships for the FVRD’s Financial Plan development. Standardized PowerPoint templates were created that outlined key questions and formed the basis for presentations at each stage of the approval process.

Our financial team’s sole focus is not on historical results, nor do we check a box on the requirements for a Financial Plan. We are the business partners who enable the critical services to move forward. We need the budget owners to be able to focus on each of their key areas of responsibility, while having awareness and accountability for what funding is needed to perform their roles effectively. On our financial planning improvement journey, the finance team rolled up their sleeves and walked alongside managers to support budget preparations at every stage of the process. We created training manuals, hosted team information and oneon-one sessions, and created an internal budget memo communication series with firm key dates and friendly instructions. And the process doesn’t end when the Board approves the Financial Plan. We also hosted debrief sessions, focusing on continuous improvement for the evolution of the FVRD Financial Plan. Year after year, we look to make incremental process improvements.

Our past practice of public consultation was to invite citizens through newspaper ads to attend board meetings on budget approval. We now publish budget slides, budget educational materials, and seek public input with the focus on transparency and accountability.

The Financial Plan is deliberately holistic; to engage staff, elected officials and members of the public in a meaningful way that can be more easily understood. We

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know people care about their tax bill. Let’s help them understand it better and engage with us on how they would like to see our services provided.

Nearing the end of the fourth Financial Plan under my leadership, this year marks a particularly proud time for me. Public consultation has moved beyond a short window of time to an incremental, multi-month education and consultation process. The FVRD’s Communication and Finance teams are partners in the public engagement on this key initiative. The teams meet weekly to stay on top of current and planned events. Team members have noted the weekly meetings are a positive and engaging start to each week, which highlights the importance and benefit to team collaboration.

The FVRD HaveYourSay public engagement platform encompasses what it means to include public participation through education, timelines, glossary of key terms, and feedback opportunities at every step of the way.

Our Financial Plan development process is iterative and now, so is the public consultation. On the horizon for our next opportunities is the incorporation of the Strategic Priorities into the plan materials as well as performance metrics. We continue to evolve and look forward to more meaningful and purposeful engagement with the public.

KELLY LOWNSBROUGH is the Chief Financial Officer

and Director of Corporate Services at the Fraser Valley Regional District. In her role, Kelly oversees the Finance, Human Resources, Information Technology and Communications teams. In addition to being a CMA and CPA, Kelly holds a Graduate Certificate in Executive Coaching from Royal Roads University.

DOLLARS & SENSE PRESPECTIVE | 29

MEMBER ARTICLE | JUSTIN BROGAN

ACCOUNTING FOR INCLUSIVITY:

YOUR ROLE IN EMBRACING DIVERSITY AS FINANCE FOLKS, WE MAY FEEL WE DON’T HAVE MUCH OF A HAND IN CREATING INCLUSIVITY. BUT, WITH INSIGHT ACROSS THE ORGANIZATION, AND HANDS IN THE BACK ENDS OF MANY SYSTEMS, WE ACTUALLY HAVE A LOT MORE POWER THAN WE MAY THINK TO IMPACT DIVERSITY! For example, in January, I updated our recreation system PerfectMind to allow for non-binary folks to appropriately identify themselves and their relationships to family.

Spending a couple of minutes with my admin powers to add “Non-binary,” “Sibling,” “Parent,” and similar genderneutral classifications to the options helps non-binary folks like me feel seen and supported. While it may not traditionally be a finance task to take on, there aren’t many other positions with eyes and hands as deep in the organization as us to tackle these little changes.

Some other easy, no- and low-budget ways you can influence inclusivity in your organization today: • Share your pronouns when meeting folks and add them to your email signature – and encourage (but don’t require) others in your organization to do the same • Swap out your gendered washroom signs for neutral ones – we’re all used to neutral ones in our own homes, does it matter who uses what?

• Allow folks to self-describe their gender instead of selecting “M” or “F” in city forms.

• Have managers and leaders participate in diversity training regularly – don’t make the first time someone is introduced to a form of diversity be when they’re encountering it in the field! Your transgender employee should not be the one training their manager on how to politely interact with them.

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• On your next policy renewal or contract renegotiation, search for any gendered language like “he” or “she” and swap it out for “them” – save on word count and include everyone at once.

• Review your leave and paternity policies to make sure they’re inclusive of the diverse ways folks can form a family – from your maternity policy acknowledging the fact women aren’t the only ones having babies, to allowing for the potential of adoption, fostering, and surrogacy as valid forms of family creation, there’s often room for growth to support the diversity of your employees.

It’s all in the details.

CALL TO ACTION Diversity helps improve decision making, employee morale and productivity, and your organization’s trust and reputation with the public – with those types of benefits, it’s hard to ignore. I challenge you to investigate your current forms, policies, and systems. See if a 10-minute excursion outside of your traditional accounting tasks could reward you with a more inclusive environment. I bet that you can find at least one place to help improve diversity in your organization.

A great, FREE primer for learning about transgender folks is Trans Care BC’s Intro to Gender Diversity: http://www.phsa.ca/ transcarebc/gender-basics-education/ education-resources/online-courses

Especially when we’re talking municipal insurance – it’s what we live and breathe, it’s even in our name.

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JUSTIN BROGAN is a community-minded young

To learn more visit us at intactpublicentities.ca

professional who joined the municipal world a year ago and dove right in. They strive to develop and share resources, facilitate collaboration within and between communities, and forward sustainability in their role with the City of Rossland and beyond.

MARCH | 2024 TM & © 2024 Intact Public Entities Inc. and/or its affiliates. All Rights Reserved.

MEMBER ARTICLE | TREVOR JAMES

COMMUNICATING RATE INCREASES: HOW TO NOT SINK LIKE A STONE WHEN THE TAX RATES ARE A-CHANGIN’

At the District of Lake Country, we had a 17.05 percent property tax increase in the 2023 budget and are hovering around double digits again for 2024. Last year was only my second budget cycle at the District adding to the challenge. We were warned on social media that there would be mobs of people that would show up at both our first reading meeting and our town hall and as such overflow seating plans were arranged. While there was decent turn out, rumours of the demise of the torches and pitchforks inventory at the local hardware store were greatly exaggerated. Colour me shocked that misinformation existed on social media. However, I do like to think our communications efforts helped lower the temperature.

For context, our property tax increase was primarily due to the following factors:

MANY MUNICIPAL BUDGETS AND THEIR CORRESPONDING TAX INCREASES HAVE BEEN MAKING HEADLINES THIS YEAR, NOT JUST IN BC BUT ACROSS THE COUNTRY. IT’S UNPRECEDENTED HOW OFTEN THE WORD UNPRECEDENTED HAS BEEN USED LATELY BUT WHEN IT COMES TO INFLATION, SUPPLY CHAIN ISSUES AND COST INCREASES IT HAS BEEN UNFORTUNATELY THE REALITY. TO AT LEAST MAINTAIN LEVELS OF SERVICE AND ADEQUATELY FUND LONG TERM CAPITAL PROJECTS MUCH LARGER TAX INCREASES THAN WHAT PEOPLE ARE USED TO SEEING ARE REQUIRED AND STRONG COMMUNICATION IS MORE IMPORTANT THAN EVER.

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• Approximately half the increase related to crossing the 15,000 population threshold in the last Census bringing our portion of the RCMP bill from 70 percent to 90 percent. We did our best to communicate that over the years but despite our best efforts many ignored it until it showed up in the form of the tax increase. We gave options to smooth the transition using the policing reserve we had built up. However, as a reserve can smooth but not eliminate ongoing increases combined with needing a new RCMP facility in the near future, Council opted to rip the band-aid off.

• Certain initiatives were funded with COVID grant funding over the past few years which Council opted to continue using taxes.

• This all occurred in the same year where the impact of inflation/construction costs was most heavily felt.

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If I had a nickel for every time some iteration of the phrase “kicking the can down the road” came up during budget discussions, we wouldn’t need a tax increase!

Council ultimately decided 17.05 percent was a large but necessary number as they did not want to scale back levels of service nor negatively impact future capital plans.

While there is no way to have everyone be happy about such an increase, here are some things that helped communicate the necessity of it: • Reports to Council, articles, and news releases ahead of time about some of the cost increases being faced so that the budget is not the first time Council or the public is hearing about them. We did this several times with our RCMP increase, as well as an article on other cost pressures we were facing.

• In camera meeting with Council early in the budget process with rough budget numbers relating to the large items that would be coming up. None of the items should be a surprise at all ideally, but stepping back and putting them all together and having a look holistically helps take some of the surprise away. We wanted to avoid Council being surprised by the increase at publishing time to avoid someone accidentally putting their foot in their mouth when the public and media come calling.

• We have a long established process of not “wish list” budgeting where when we take something to Council for budget approval, we think it is a need, not a want.

The only items that are more optional in nature are based on Council initiatives that have come up through strategic priorities or Notice of Motions from Councillors throughout the year however these are typically minor in dollar value.

• Because we had four out of seven new Councillors, I offered “Coffee Beans with a Bean Counter” where I met with individual Councillors over coffee to go over additional questions to enhance their comfort with the budget package. This was well received by the new Councillors.

• Utilized our “Let’s Talk Platform” and published all the questions we got and detailed responses. Having

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unfiltered questions/comments on there and showing our answers helped demonstrate our effort to be transparent and not sugarcoating anything. Council appreciated being able to see the questions as well as our answers back.

• Took some of the themes we were hearing from the questions and published “You Asked” articles to try and spread good information.

• Had a Town Hall which included in person, over the phone, and Facebook live chat questions. The majority of questions were answered by Mayor & Council with staff there for clarification. Again, read everything and did not screen negative comments.

• We have an incredible team; our public engagement specialist and communications officers did a tremendous job and our managers and directors were extremely helpful in answering questions relevant to their sections.

• Discussing things in terms of real dollars as opposed to percentage increases was extremely helpful and easier for people to understand. While 17.05 percent is significant, when you consider it works out to approximately $360 or $18 per month on the average home which in 2023 was $1,087,000 it is much more reasonable.

The biggest theme in all of the above: no surprises.

While this is not entirely possible given that no matter what is done the public is not always tuned into everything until they see the headlines for the tax increase, the less surprises the better. As with most things, transparency and proactive communication can go a long way.

TREVOR JAMES , CPA, CA is the CFO of the District of Lake Country where working with firefighters, police, garbage trucks, Zambonis, snow plows etc. has finally convinced his kids that being an accountant can be cool.

QUARTERLY QUESTION | CIVIC INFO BC

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quarterly question

INFLATIONARY PRESSURES

IN THE DECEMBER ISSUE OF DOLLARS & SENSE PERSPECTIVE, WE CONDUCTED A SURVEY ON HOW INFLATIONARY PRESSURES ARE AFFECTING BUDGETS IN LOCAL GOVERNMENTS ACROSS BRITISH COLUMBIA. SPECIFICALLY, WE ASKED ABOUT CONTINGENCY PERCENTAGE FOR CAPITAL AND SPECIAL PROJECTS, AS WELL AS THE INFLATIONARY INCREASE FACTORED IN FOR CASUAL CONTRACTOR SERVICES. THE RESULTS FROM THE SURVEY RESPONSES ARE ILLUSTRATED IN FIGURES 1 AND 2.

Figure 1: What contingency percentage are you using for capital or special projects?

Figure 2: What inflationary increase are you factoring in for casual contractor services?

34 | DOLLARS & SENSE PERSPECTIVE

GFOABC.CA

Additionally, we asked how local governments arrived at inflationary increases for operations and maintenance cost increases. When projecting operations and maintenance costs for local government projects, 28 percent of local governments reported using the Building Construction Price Index (BCPI). This index reflects changes in the costs associated with building construction, including materials and labour, which are directly related to the maintenance and upkeep of government-owned buildings and infrastructure. Meanwhile, 73 percent of local governments reported using the Consumer Price Index (CPI) to project operations and maintenance costs.

The Consumer Price Index (CPI) measures changes in the price level of consumer goods and services purchased by

households. Some local governments used both indices, along with alternative information sources, including historical trends.

When budgeting for casual contractor services, the majority (61 percent) indicated that they would increase prior year figures by 3–5 percent, while an additional 22 percent reported planning for a 5–10 percent increase over the prior year. The response was very similar for calculating unknown costs in the budget.

We also asked local governments when they bring their budget to council for mandates. We received a varied response highlighted in the chart below.

Figure 3: Responses from local governments for the timing of the budget presentation/ submission to councils by month.

THE NEXT QUARTERLY QUESTION SURVEYS ALTERNATIVE WORK ARRANGEMENTS AND PERKS

Detailed results for this survey can be obtained by emailing surveys@civicinfo.bc.ca Please use this link to be a contributor.

This short survey should take less than 5 minutes to complete.

MARCH | 2024

DOLLARS & SENSE PRESPECTIVE | 35

COLLECTOR’S CORNER | DOUG STEIN

Collector’s Corner: PRE-TAX SALE “NOTIFICATION” THE NEW LEGISLATION

ONE OF THE RECOMMENDATIONS IN THE OMBUDSPERSON’S “A BID FOR FAIRNESS” REPORT IS TO AMEND THE LOCAL GOVERNMENT ACT TO REQUIRE MUNICIPALITIES TO PROVIDE NOTICE OF THE PENDING TAX SALE TO THE OWNER OF A PROPERTY SUBJECT TO A TAX SALE BY A SET TIME FRAME PRIOR TO THE SALE. AT THE TIME OF WRITING THIS ARTICLE, THE NEW S647.1 (PER BILL 3 AND 42) HAS NOT BEEN ENACTED. However, there are several challenges that collectors will face to comply with the new legislation: • While the number of notifications that are required after the tax sale are quite minimal, the number of pre-tax sale notifications that will be required will be quite large (to say the least) creating a significant amount of work for collectors and if substituted service is required, lawyers and the courts.

• There could be a significant increase in administrative costs, especially if substituted service is required, which cannot be recouped even if the property goes to tax sale.

• The interest rate from July 1 to the date of the tax sale is unknown at the time of the pre-tax sale notification.

Therefore, an estimate of the total upset price will be necessary. (The amount of all taxes owing and the upset price would also include the penalty on the current year taxes.)

• If substituted service is required, time will be of the essence. The pre-tax sale notification cannot be sent prior to adopting the current year tax levy bylaw. If required, the substituted service process could take four to-six weeks, which would have to be completed prior to the 60-day deadline.

• Besides the owners, owners of a charge are also required to be notified, specifically a “charge” of a financial nature. All chargeholder information would have to be collected from LTSA and processed manually.

36 | DOLLARS & SENSE PERSPECTIVE

Also, if the financial charge will not be purged or disencumbered if the property would not be redeemed, substituted service would be impractical.

• After the notifications have been sent out but prior to the 60-day deadline, presumably an owner change would clear the delinquent taxes, however what about notifying new chargeholders?

• A decision collectors may have to make is whether to take a property with delinquent taxes to tax sale if they are not satisfied that the pre-tax sale notification requirement has been met.

Municipal collectors and finance staff are to be highly commended for your already diligent efforts to contact owners with delinquent taxes. This is obvious since very few properties do go to tax sale (and even fewer are unredeemed) compared with the very large number of properties with delinquent taxes. Collectors may be faced with the conundrum of balancing strict compliance versus a practical, low-risk approach in complying with the new legislation. However, at the January 24, 2024, GFOABC Collectors’ Forum webinar, the comment was made that the legislation might be delayed and may not be brought into force until 2025, if at all. Also, other changes to administering the tax sale process (e.g. best practices) have not been announced. Stay tuned to GFOABC as we wait with bated breath what’s going to happen. In the meantime, keep up the excellent work that you are doing.

DOUG STEIN has worked in municipal finance for over

40 years. He retired from his position as Manager of Revenue Services for the District of Saanich in 2011 and now facilitates GFOABC workshops and webinars and consults on property taxation issues. Doug has been very involved with the Collectors’ Forum, is a GFOABC Life Member and a CPA, CMA.

GFOABC.CA

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MARCH | 2024

DOLLARS & SENSE PRESPECTIVE | 39