GFOABC Dollars & Sense – September 2023 - Issue 124

INSIDE

Boot Camp Highlights

ESG and Local Government

Member Spotlight: Dean Rear

I would like to start out on a difficult note by acknowledging the challenges faced by many municipalities and regional districts from wildfires this summer. As a close network of finance professionals in BC we all empathize with our affected colleagues, and what they are experiencing and overcoming. Fire events continue to impact our communities and the work we do in service to those communities. As we approach fall, we hope for relief for those communities affected.

Before I touch upon GFAOBC’s plans for fall, I would like to congratulate everyone who completed GFOABC’s intensive, five-day Local Government Finance Officers Development Bootcamp Program and Team Purple, who won the much-coveted Golden Boot! You officially have the right to brag as the winning team! The participants moved through multiple days of programming on every major local government finance topic. This is an excellent foundational program and has supported hundreds of local government finance professionals since its inception in 2007.

Fall is a busy time for GFOABC. We continue to offer professional development opportunities to support you in reaching your goals. If you are considering a professional development opportunity this fall,

consider our upcoming forums and our Fall PD. Fall PD takes place November 21-22, 2023, at the Coast Coal Harbour Hotel in Vancouver and will cover many timely local government finance topics. Augmenting Fall PD this year is the Biennial Joint GFOABC/CPABC Local Government Accounting & Auditing Workshop (LGAAW), taking place November 23-24, 2023. LGAAW will cover topics such as ESG, asset retirement obligations and ethics. Also, stay tuned for the next intake of the Strategic Financial Leadership Program later this year. After a very successful launch in 2023, GFOABC is planning to offer Strategic Financial Leadership again in 2024.

The fall season is a great time to connect with colleagues from other local governments, share ideas and continue dialogue on the local government finance challenges of today. You can register and find more information on GFOABC’s fall professional development programs at the GFOABC website.

If you thought the Board was resting this summer, you would be wrong! The important work of the Board, which began immediately after the Annual Conference in June, continues as each committee and the Board held their meetings this summer. The External Relations Committee, Communications Committee and Executive Committee are tasked with advising and acting on strategically significant work on behalf of the Board each year, and this year is no exception. Committees will report to the Board in September. This month the Board will also focus on GFOABC’s strategic planning process. I look forward to seeing member input in the months ahead and I am excited to

see the direction our members take us in the upcoming plan cycle. Stay tuned for more information as we progress in this important work.

Are you interested in serving on the GFOABC Board or a GFOABC committee in 2024? If so, I recommend reaching out to GFOABC Executive Director Kala Harris or me to learn more. The Board and committees are comprised of many talented volunteers who make a difference and leave their mark on GFOABC. Expressions of Interest for

2024 Board and committee positions are being accepted up to December 29, 2023. You can find the EOI information on page 7 or by visiting the GFOABC website at https://www. gfoabc.ca/about-us/volunteers/ Finally, do you know a colleague or team that deserves to be recognized for the extraordinary work they are doing? Consider nominating them for the annual Excellence in Local Government Finance Awards. Nominations close on December 31, 2023. For more information check out

the awards criteria on the GFOABC website https://www.gfoabc.ca/ about-us/awards/

As you can see, there is a lot going on with GFOABC! I encourage you to continue your engagement with the organization, ask questions, provide feedback, and take part in our many offerings. I wish you all an excellent fall!

Rianna Lachance, GFOABC President

BOARD OF DIRECTORS

Rianna Lachance, President

Julia Aspinall, Vice President

Talitha Soldera, Secretary-Treasurer

Nyla Attiana, Past President

DIRECTORS AT LARGE

Corinne Bomben, City of Prince Rupert

Nicole Gervais, MFABC

Elio Iorio, District of North Vancouver

Mike Kennedy, City of Rossland

Lenora Lee, KPMG

Jeffrey Lovell, City of Port Coquitlam

Charlotte Osborne, City of Cranbrook

GFOABC STAFF

Kala Harris, Executive Director

Matt Holme, Manager, Member Services & Communications

Otto&Fran / www.ottoandfran.com, Graphic Design Services

WITH BOOT CAMP BEHIND US, WE BEGIN THE FINAL PREPARATIONS FOR NOVEMBER’S FALL PROFESSIONAL DEVELOPMENT WEEK WHICH INCLUDES GFOABC PD WORKSHOPS ON NOVEMBER 21-22, 2023, AS WELL AS OUR JOINT CPABC LOCAL GOVERNMENT ACCOUNTING & AUDITING WORKSHOP ON NOVEMBER 23-24, 2023.

The GFOABC workshops include Long-term Financial Planning and Regional District Day, where we have regional hospital districts and emergency management on the agenda, Property Tax Policy and Tax Rate-setting, as well as Ethics and Leadership, which will provide insight on navigating the political-administrative interface. The joint CPABC Local Government Accounting & Auditing Workshop will include sessions on ESG reporting, PSAB Update, ARO Implementation and Beyond, as well as an ethics panel discussion that will look at two different case studies with two very different outcomes.

The Executive Committee will also be busy representing GFOABC at our GFOA partner conferences. There is a longstanding partnership within the GFOA network that supports networking across the country and even across the border. This September, Rianna Lachance, GFOABC’s President will address the delegates of the Municipal Finance Officers Association (MFOA) in Ontario at their annual conference in Niagara Falls. GFOABC’s SecretaryTreasurer, Talitha Soldera, will head down to Spokane, Washington, to address the delegates of the Washington Finance Officers Association (WFOA). These partnerships are incredibly important to the local government finance sector, members of the respective associations, and the associations themselves as a tool for learning and knowledge sharing.

The External Relations Committee Chair, Julia Aspinall, will be attending the Union of BC Municipalities (UBCM) Annual Convention and has been working with committee members Corinne Bomben and Rick Danyluk to leverage the opportunity to network with the various ministries in support of deepening the awareness and knowledge of the challenges local governments are facing and the value proposition of having finance at the table. Having attended a couple of UBCM Conventions in the past, just being there provides so much value in understanding the convention process, being privy to conversations that I would not otherwise be a part of and learning about the efforts being made to address the challenges facing local governments in British Columbia.

September will wrap up with a GFOABC Board of Directors strategic planning session in Sidney, BC. This strategic planning session will be informed by the strategic planning engagement that was held at the conference in Whistler. It will also be informed by the Board’s September planning session from last year which set out the initial strategic planning foundation. Our goal is to provide the draft 2024-2029 Strategic Plan to GFOABC members in December and will provide an opportunity for feedback at that time.

In the meantime, we hope you will take some time out of your busy September days to grab a pumpkin-spiced beverage of choice and take in some articles. Matt Holme and Bobbe Koenig’s articles on this year’s Boot Camp, Justin Brogan’s online Forum article, and our Member Spotlight on Dean Rear provide some great informative and inspirational reading.

Kala Harris, Executive Director

FIRST IMPRESSIONS OF A SUCCESSFUL GFOABC BOOT CAMP

AS THE NEW MANAGER, MEMBER SERVICES AND COMMUNICATIONS AT GFOABC THIS WAS MY FIRST BOOT CAMP. I HEARD A LOT ABOUT IT IN MY FOUR MONTHS ON THE JOB– THE LONG DAYS, THE KNOWLEDGEABLE FACILITATORS AND THE FUN HAD BY THOSE IN ATTENDANCE. I DID NOT KNOW WHAT TO EXPECT HEADING INTO BOOT CAMP, BUT I LEFT ON THE FINAL DAY FEELING IT DID NOT DISAPPOINT.

GFOABC held its annual Boot Camp August 13-17, 2023, at the University of Victoria in a stuffy room in the Student Union Building. We kicked off with team building and ice breakers. Each group named their teams and decorated their tables in their team’s colours. Later, I presented on the GFOABC Online Forum, going through its functions and a few best practices for using this popular tool. The first day was capped off by the delicious food from UVic Student Services. Whatever discomfort the attendees felt from the heat and dorms, I hope the food more than made up for it!

As the week went on it was clear this was an engaged group of people. The topics were varied, but regardless of the topic each team was asking intelligent questions and had a desire to learn more. It was also great to see facilitators and topics covering both municipalities and regional districts. The regional district focus was included by facilitators like Natalie Wehner and Tania McCabe, who work at regional districts, as well as Marc Castro from the Ministry of Finance, who gave a parcel tax and ad valorum overview.

We all know local governments have regular interactions with residents in their community. I thought, if these are the individuals in leadership roles in their communities, British Columbia’s communities are in good hands. The teams also found creative ways to show off their colours as they competed for points to win the Golden Boot. The coveted Golden Boot also sat at the front of the room for the duration of Boot Camp, and it could have been renamed the Rainbow Boot by the end of the week as teams found inventive ways to add their colours to it.

A lot of work goes into Boot Camp, not only from GFOABC staff but by the facilitators as well. A special thank you to the volunteers who led sessions and donated their time to make Boot Camp a success. These volunteers were Dawn Christensen, Tania McCabe, Natalie Wehner, Bernice Crossman, Todd Pugh, Doug Stein, Jedha Holmes, Bill Dawson, Shelley Hahn, Lauren Kerr, Kelly Lownsbrough, Talitha Soldera, Karen Kerr, Mario Piroddi, Manvir Manhas and Troy Ziegler. GFOABC would also like to thank the many representatives from the Ministry of Municipal Affairs and the Ministry of Finance. Finally, a special thanks to the Municipal Finance Authority (MFA) for providing a funding grant for Boot Camp as well.

It is clear Boot Camp has become a premier professional development opportunity for GFOABC members – not only for those new to local government, but for seasoned managers too. Demand to attend was high again this year. Congratulations to everyone who attended Boot Camp 2023 and we look forward to next year’s Boot Camp in 2024!

MATT HOLME is the Manager, Member Services and Communications at GFOABC.

FALL PROFESSIONAL DEVELOPMENT WORKSHOPS

LOCAL GOVERNMENT ACCOUNTING & AUDITING WORKSHOP REGISTER NOW

November 23 | 8:30am – 4:30pm

ESG and Public Sector Reporting | Public Sector Accounting Board (PSAB) Update | PSAB Conceptual Framework and Reporting Model Review | Maximizing the Auditor-Auditee Relationship | Nature’s Balance Sheet: Valuing Our Natural Assets | Audit Partner Round Table - KPMG, BDO, & MNP

November 24 | 8:30am – 4:30pm

Economic Update | Canadian Accounting Standard (CAS) 600 Special Considerations | Asset Retirement Obligations (ARO) and Beyond | Revenue Recognition Overview | Ethics Dialogue: Identifying Warning Signs and Taking Action

FALL PD WORKSHOPS

November 21 | 8:30am – 4:30pm

Regional District Day REGISTER NOW

November 21 | 8:30am – 4:30pm

Property Tax Policy & Rate Settting REGISTER NOW

November 22 | 8:30am – 4:30pm

Long-term Financial Planning REGISTER NOW

November 22 | 8:30am – 4:30pm

Ethics & Leadership: Political Administrative Interface REGISTER NOW

Reserve before October 30 to receive negotiated rates.

Coast Coal Harbour Hotel 1180 W Hastings St, Vancouver, BC 1-800-663-1144

ONLINE HOTEL RESERVATION

The Government Finance Officers Association of British Columbia (GFOABC), established in 1989, is a not-for-profit organization that represents local government finance professionals across BC. Our Mission is to promote excellence in local government through the support and development of our members Our membership is comprised of over 1,000 members representing 160 Municipalities and 28 Regional Districts across the province.

We offer a wide variety of courses, webinars and workshops on topics of current interest and relevance

We also provide opportunities for our members to connect with other local finance professionals and supporting organizations through regular newsletters, events and our annual Conference and Trade Show in the spring.

The Opportunity

GFOABC is seeking expressions of interest from our members to sit as a Director on our Board. The role of the Board is to oversee the management and affairs of GFOABC and engage at the Board level to ensure the organization achieves its mission The Board delegates the responsibility for the day-to-day operations to the Executive Director

The Board meets approximately 5-6 times a year with a combination of virtual and in-person meetings. GFOABC will elect Board members for a term of one year at the AGM to be held at the annual Conference beginning on Wednesday, June 5, 2024

Application Process

Individuals wishing to be considered by the Board as a 2024 candidate, must submit an Expression of Interest Submissions should outline the following:

Explain why you would like to serve on the GFOABC Board Related experience and qualifications

A brief biography to be shared with the Board of Directors

Submissions Will Be Accepted Up To December 29, 2023!

Questions regarding this opportunity and expressions of interest must be submitted via email to:

Rianna Lachance, President rlachance@crd bc ca

GFOABC BOOT CAMP

TEAM PURPLE BEGAN THE WEEK OF GFOABC’S 2023 BOOTCAMP STATING HOW WE “WEREN’T VERY COMPETITIVE” AND “IT’S JUST FOR FUN,” BUT SOMEHOW HERE I AM WRITING THIS ARTICLE ALL IN THE NAME OF POINTS AND TEAM PRIDE. TURNS OUT WHEN YOU GET A GROUP OF LIKEMINDED INDIVIDUALS INTO A BIG, HOT ROOM WITH MINIMAL AIR FLOW, YOU CREATE AN ATMOSPHERE OF COLLABORATION, SHARED KNOWLEDGE, AND JUST A BIT OF COMPETITION.

GFOABC Bootcamp is an annual training program for new Finance Officers or those who wish to become one in the future. Attendees are a diverse mix of positions, experience levels and come from municipalities of all sizes across the province. Presenters from municipalities, regional districts, organizations, and government agencies passed down their wealth of knowledge to the group of willing learners on topics like tax, funding, budgeting, financial reporting and so much more. Attendees were split into teams and worked together to complete group work, activities and even a surprise performance at the evening gala!

The GFOABC Boot Camp 2023 cohort. Thirty-six individual spent five days at the University of Victoria learning about various local government finance topics.

For me the most valuable thing I gained at Bootcamp was the new connections made with my peers. Throughout the week I was not only blown away by all the knowledge of the presenters and the wisdom and small tips they shared, but also the value of hearing the experiences of my peers and different approaches to similar problems. Personally, this is the thing I will hang onto most following the days at Bootcamp. We have already been sharing resources and messaging only four days after completion and will continue to be a sounding board for each other throughout our careers.

My first few months as a Finance Officer were honestly a bit of a blur, and a huge learning curve. I was hesitant to attend Bootcamp, thinking that I have never been one to learn well in a group, but I am happy to say I was proven wrong. Bootcamp has made a huge difference in not only my level of knowledge on several topics, but my confidence in the process and decision making needed to complete the tasks required for my position. It has already shown to be worth the effort and I would recommend Bootcamp to anyone considering a career in local government finance.

I came home with a massive list of things that I can put into practice in my day-to-day work starting today, as well as in the future. While it was a long stretch of full days, hot rooms, and lots of interesting conversations, it was well worth the time spent. I don’t think I have ever been so happy to see my own bed after sleeping in dorms but will be digesting all the new information learned at Bootcamp for weeks to come.

I want to give my most heartfelt and sincere thank you to the GFOABC Team, all the presenters and facilitators of Bootcamp, as well as all others involved working behind the scenes. Your time made our experience so positive! Team Purple was lucky enough to walk away with the golden boot, but it was a close race between all the teams. With that I will stop blabbering away, go to Bootcamp, it’s that simple! .

Boot Camp attendees are divided into six teams (each assigned a colour), who compete for points. This year’s winning team was Team Purple.

BOBBE KOENIG joined the Village of Lumby as the Chief Financial Officer in March 2023. Bobbe obtained her Bachelor of Business from Okanagan College in 2017 and CPA designation in 2020. She began her accounting career in public practice in 2015 as a co-op student and progressed to become a manager focusing primarily on audit of municipal government and service of small business.

MENTAL HEALTH X LOCAL GOVERNMENT FINANCE

WORKING IN LOCAL GOVERNMENT IS NOT FOR THE FAINT OF HEART. WHILE AT TIMES WE ENCOUNTER HILARIOUS SITUATIONS THAT MAKE US FEEL LIKE WE’RE BEING CAST AS CHARACTERS IN A REMAKE OF THE CLASSIC NBC SITCOM PARKS AND RECREATION, THERE ARE MANY ASPECTS OF OUR ROLES THAT ARE STRESSFUL AND CAN SHAKE OUR MENTAL HEALTH. AS SOMEONE WHO HAS NAVIGATED BOUTS WITH DEPRESSION OVER THE COURSE OF MY CAREER, I BELIEVE IT IS IMPORTANT TO TALK OPENLY ABOUT THE UPS AND DOWNS OF WORKING IN LOCAL GOVERNMENT LEADERSHIP AND THE IMPACTS IT CAN HAVE ON OUR HEALTH.

In any given year, one in five Canadians experience a mental health problem or illness, according to the Canadian Mental Health Association (CMHA). By the age of forty, half of the population will have faced mental illness. Unlike physical ailments, mental illness often goes unnoticed, as it may not have visible symptoms. Various factors contribute to mental illness, including genetics, environmental stressors, and personal life events.

As local government finance leaders we often work under intense pressure. Growing reporting requirements (expanding from traditional financial reporting to increased data on climate and DEI, to name a few), increased public scrutiny via social media (don’t read the comments!!!) and infrastructure resilience and renewal are just a few of the issues we are up against. Throw in responsibility to make complex decisions on use of scarce resources that directly impact thousands of people, and it can feel overwhelming at times. Often, we’re one of the

few people with the full context on the data and impacts behind unpopular decisions and it can be a lonely place to operate from.

Operating amidst such pressures can have significant mental health impacts. Yet, within this challenge lies an opportunity. As local government financial leaders, we have a deep-rooted responsibility to society, and addressing mental health issues head-on can showcase leadership. By fostering an environment where colleagues feel supported and encouraged to discuss mental health, we can shape a new era for our profession.

At a professional level, I feel we have a duty of care to understand better the financial and human externalities our organizations create (and absorb). Mental illness isn’t just a personal or societal issue; it has financial implications for organizations. The economic impact of mental illness in Canada amounts to $51 billion annually, encompassing health care costs, lost productivity, and diminished health-related quality of life. It is important to note that this estimate does not capture the loss in productivity due to factors such as presenteeism (i.e. working below one’s potential due to illness). A growing body of evidence shows that modest investments in upstream mental health interventions for employees have significant returns.

RESOURCES FOR ACTION

Just as mental health is a complex matter, so is treatment, with options ranging from medication to lifestyle changes to Eastern medicine. The right combination looks different for everyone. For me, the path back to some stability has been a blend of a tighter routine with a premium placed on exercise and sleep hygiene, dietary changes, and regimental medication to keep anxiety in check. While I’m not able to completely avoid sinking into depression, I am better able to predict when a bout is coming on, and work within the constraints it imposes on me.

My top three recommended resources are:

1. Mind Over Mood by Dr. Dennis Greenberger and Dr. Christine Padesky. A no-nonsense overview of practical techniques, tips, and tools for managing one’s mental health. Nerdy confession: I actually made a

conditionally formatted excel sheet to track my mood. Based on content from this book. (www.mindovermood.com )

2. Mental Health First Aid. A must-have course offered by the Mental Health Commission of Canada that teaches students how to recognize the signs and symptoms of mental health problems, provide initial help, and guide a person toward appropriate professional help. (www.mentalhealthfirstaid.ca )

3. Meditation. Regular mindfulness meditation, even for a few minutes a day, has been a crucial tool for me to manage anxious or depressive periods. There are plenty of resources available.

I’d recommend:

Insight Timer (www.insighttimer.com - Free), Headspace (www.headspace.com ), Calm (www.calm.com ), and Waking Up (www.wakingup.com ).

Don’t underestimate the power of simply sharing with a trusted colleague, friend, family member, or health professional the phrase “I am feeling depressed.” It has been my experience that vulnerability and openness surrounding mental health are a powerful tool for healing - and the GFOABC family has been an incredible support along the way.

MIKE KENNEDY CPA, CA is the imperfect CFO of the City of Rossland, British Columbia and serves on GFOABC’s Board of Directors. .

RETURN AND YIELD GLOSSARY: NAVIGATING INVESTMENT TERMINOLOGY WITH CONFIDENCE

IN MFA’S CORNER, WE AIM TO PROVIDE YOU WITH VALUABLE INFORMATION ABOUT VARIOUS FINANCIAL CONCEPTS. IN THIS EDITION, WE ARE GOING BACK TO THE BASICS AND IN THE FOLLOWING SECTIONS WE PROVIDE AN OVERVIEW OF IMPORTANT TERMS RELATED TO YOUR INVESTMENT PORTFOLIO. LET’S DIVE IN!

TOTAL RETURN is a comprehensive measure that reflects the overall performance of an investment, considering both income generated and capital appreciation (or depreciation) over a specified period. It includes all forms of return, such as dividends, interest, capital gains, and changes in an investment’s market value.

MONEY WEIGHTED RATE OF RETURN (MWRR) is a measure that calculates the performance of an investment (or a portfolio) by considering the timing and amount of cash flows. It reflects the actual return experienced by investors based on the timing of their contributions or withdrawals.

Here’s an example: Suppose you invest $10,000 in one of MFA’s pooled investment funds at the beginning of the year. After six months, the value of your investment increases to $11,000. Then, you invest an additional $5,000 into the fund. At the end of the year, the value of your investment grows to $16,000. MWRR would be calculated based on these cash flows and their respective time periods.

The “XIRR” function in Excel can assist in calculating MWRR.

TIME WEIGHTED RATE OF RETURN (TWRR) ignores the timing and amount of cash flows in calculating performance. This measure focuses on the overall investment return, independent of investors’ actions. It is commonly used to assess a fund managers’ performance, as it disregards factors that are not in their control.

Here’s an example: MFA’s Diversified Multi-asset Class Fund has a net asset value (NAV) or price of $10 per unit at the start of the year. Over the course of the year, the NAV/

price increases to $12. During this period, some investors may enter or exit the fund, but those cash flows are not considered when calculating the return, making it ideal for interpreting a fund manager’s impact on investment performance.

WEIGHTED AVERAGE COUPON is a measure used for fixed income portfolios. It provides investors with a gauge of the level of coupon income which will be generated by their portfolios.

Here’s an example: Consider a portfolio that holds three different bonds. Bond A has a coupon rate of 4% and a market value of $10,000, Bond B has a coupon rate of 3% and a market value of $5,000, and Bond C has a coupon rate of 5% and a market value of $15,000. The weighted average coupon would be calculated by assigning weights to each bond’s coupon rate based on the relative size of each bond in the portfolio.

From the example above, the weighted average coupon is equal to: [4% x ($10,000/($10,000+$5,000+$15,000)] + [3% x ($5,000/($10,000+$5,000+$15,000)] + [5% x ($15,000/ ($10,000+$5,000+$15,000)] = 4.33%

CURRENT YIELD is a measure used to assess the incomegenerating potential of a fixed income security such as bonds. It is calculated by dividing the annual interest income by the market price of the security. Here’s an example:

Suppose a bond has a face value of $1,000 and pays an annual coupon of $80. If the bond is currently trading at $950 in the market, the current yield would be calculated as $80 divided by $950, resulting in approximately 8.42%.

DISTRIBUTION YIELD is a measure used to assess the income generated from a fund, specifically related to the distributions made to investors. It represents the periodic distribution (income, interest, or capital gains) paid by a fund, expressed as a percentage of the fund’s net asset value (NAV) or price at the time of distribution.

For example, suppose you invested in MFA’s Short-term Bond Fund, and the Fund distributed $0.04 while the price of the fund at the time of distribution was $10. That would result in a distribution yield of 0.4%.

YIELD TO MATURITY (YTM), in pooled fund context, is typically represented as the weighted average of the YTMs of all the bonds held within the pool. YTM reflects the annualized return an investor can expect if interest rates remain unchanged, all bonds are held until maturity, and coupons received are reinvested at the YTM rate.

Calculating YTM for a single bond involves finding the discount rate that equates the present value of future cash flows to the bond’s current price. This rate considers the bond’s coupon payments, time to maturity, and market price.

While the terms listed certainly aren’t comprehensive of all yield or return measures, we’ve found these are definitions and calculations that many investors find difficult to differentiate. Understanding these concepts and employing and communicating a fixed methodology can help you evaluate and make informed decisions with respect to your investment portfolio. Please connect with MFA’s Client Services team at invest@mfa.bc.ca at any time if we can be of assistance, we are always happy to help you.

Supporting education for local government is part of MFA’s mandate, and in this spirit, we hope you will join us for the upcoming October Investment & Financing Webinar, presented in partnership with MFA and GFOABC, where we will provide an economic and interest rate environment update along with an overview of treasury and investment management reporting.

IMPROVING MUNICIPAL ESG PERFORMANCE –THE LOW HANGING FRUIT

ESG: THE THREE LETTERS THAT HAVE DOMINATED SUSTAINABILITY NEWS OVER THE PAST SEVERAL YEARS. YOU’VE PROBABLY HEARD THE TERM THROWN AROUND BEFORE—INCLUDING AT THE GFOABC ANNUAL CONFERENCE IN WHISTLER THIS SPRING. BUT IF THE TERM IS NEW TO YOU, ESG REFERS TO THE ENVIRONMENTAL, SOCIAL AND GOVERNANCE PERFORMANCE OF AN ORGANIZATION. IT MEASURES PERFORMANCE ON TOPICS SUCH AS THE MANAGEMENT OF WASTE, EMISSIONS AND WATER, AND ACTIONS TO IMPROVE DIVERSITY, COMMUNITY BENEFITS, SUPPLY CHAINS AND MORE.

WHY SHOULD MUNICIPALITIES CARE?

There are three good arguments for why municipalities should start paying attention to ESG.

1. Because it intersects with their mandate to protect people, systems and the environment.

2. Because ESG has become a point of competitive differentiation. Strong ESG performance can boost investment competitiveness for a municipality’s existing businesses and can help draw new investment to the community.

3. Because it affects the government’s credit rating and borrowing costs. Major credit rating and investment research agencies such as Moody’s, S&P, Fitch and MCSI have begun to apply ESG factors in their risk assessments of municipal governments.

WHAT CAN MUNICIPALITIES DO TO START THEIR ESG JOURNEY?

There are a few actions that can be undertaken with relatively little effort—the low-hanging fruit.

• Align your data with ESG metrics. Most municipalities already produce a wealth of data and information— much of which can be useful to audiences who want to understand the ESG performance of a jurisdiction or

of a company within it. This could include community demographics, energy efficiency programs, waste management processes, and environmental impacts. However, this data is not always packaged in a way that makes it easy to use by ESG-interested audiences. A good first step for municipalities is to figure out what metrics are important to those audiences and then package data in a way that is aligned with ESG reporting needs.

• Make your data findable. Producing ESG data is only useful if people know about it. This means doing the work to ensure that interested audiences are aware that the data exists and can easily find it. This could be as simple as making the information highly visible on the municipality’s website. Investment attraction agencies can also use the ESG “story” to promote companies as investable and to better advocate for the jurisdiction.

• Start using and introducing ESG language into your processes. Using ESG language throughout your organization can allow decisions to be made on the basis of ESG performance impacts in addition to traditional risk assessment metrics. Consistent use of ESG language by all departments can also help to break down silos and get everyone on the same page with respect to the municipality’s ESG goals.

It may seem daunting when you look at all the different approaches to ESG that exist now, but the important thing is to just start. You don’t need to tackle the whole problem at once—it’s okay to start small.

BRENDAN COOKE is a Senior Policy Analyst in the Natural Resources Centre at the Canada West Foundation. His work focuses on the sustainable development of Western Canadian resources, and the future of energy policy. Brendan has conducted research on various aspects of ESG including its use in the Canadian energy sector, ESG and government, and the intersection between ESG and energy regulation.

MUNICIPAL CLIMATE RESILIENCY GRANTS ONE YEAR LATER

WHAT DO CLIMATE RESILIENT COMMUNITIES HAVE IN COMMON? THEY RECOGNIZE THAT NATURAL ASSETS, LIKE WETLANDS, GRASSLANDS AND TREES, CAN HELP TO REDUCE THE IMPACTS OF EXTREME WEATHER AND THEY SUPPORT THE PEOPLE THAT LIVE THERE BY PROVIDING EDUCATION, AWARENESS AND TOOLS TO GUIDE INDIVIDUALS AND BUSINESSES TO TAKE PREVENTATIVE ACTION AND BE BETTER PREPARED FOR THE CONSEQUENCES OF A CHANGING CLIMATE.

Volunteers with Environmental Youth Alliance restoring wildlife habitat with native plants.

More and more often we are experiencing the devastating impacts of climate change induced extreme weather. In 2022, to support those on the front lines of protecting their communities, Intact Public Entities (IPE) and Intact Financial Corporation launched the Municipal Climate Resiliency Grants program which invested $1 million into local initiatives that mitigate the risks and severity of flooding and wildfires, Canada’s two largest climate risks.

Over the last year, the recipient municipalities and notfor-profit organizations have been hard at work putting action to their plans to help their communities better adapt to the harsh impacts of climate change.

In Vancouver, British Columbia, one grant recipient is helping alleviate the risk of flooding through a wetland development in downtown’s east side. Spearheading the project is the Environmental Youth Alliance (EYA) in partnership with Strathcona Community Gardens which began working on the project in the summer of 2022 with the help of at-risk youth and community volunteers.

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Over the past year the EYA made significant progress on the wetland development which will improve surface runoff and absorb rainfall in the area which has historically been prone to flooding. Highlights of the last year include replacing invasive plants with wetland plants, deepening the already established pond, as well as seeding and overwintering plants for next year in the on-site nursery.

While much has been accomplished, the EYA has a lot of work left to do before the project is complete. The next year will involve monitoring the site to observe waterflow to better identify what species of plants and wildlife will thrive in the area as well as continuing to replace invasive plants with those native to the area.

A key component of the Municipal Climate Resiliency Grants program was the ability to replicate the funded projects in communities across the country. The EYA’s wetland development is a great example of how urban areas can reduce the risk and severity of flooding by using natural infrastructure. Other grant recipients are tackling climate resiliency in different ways. To reduce flood risks, some recipients implemented rebate programs to assist residents with the costs to purchase and install flood protection tools including sump pumps and backup batteries while others invested in education

and technology to help their communities prepare for potential floods. Some focused on flood prevention projects aimed at improving natural water management infrastructure along rivers and watersheds for several communities upstream and downstream.

Recipients focussing on wildfire resiliency are working towards the development of firebreaks to slow the spread of fires and to allow for an increased emergency response time, as well as rebate programs for residents to upgrade their homes to include fire-resistant materials.

To read more about the grant recipients and their initiatives, visit www.intactpublicentities.ca/the-intact-foundation.

LARRY RYAN is the President of Intact Public Entities and possesses a unique perspective of the municipal insurance environment. Larry has worked in the municipal sector for over 25 years, previously as the CFO for a large Ontario municipality.

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CHALLENGES AND SOLUTIONS IN MUNICIPAL PROCUREMENT

IF THERE’S ONE THING THAT ALL LOCAL GOVERNMENTS ACROSS CANADA HAVE IN COMMON, IT’S THE MANDATE TO SERVE THEIR RESIDENTS AS COST-EFFECTIVELY AS POSSIBLE. MANY TAXPAYERS WANT TO KNOW WHAT THEIR TAX DOLLARS ARE PAYING FOR AND HOW THAT MONEY IS BEING PUT TO THE BEST USE POSSIBLE. IF THAT WEREN’T ENOUGH PRESSURE, THE PROVINCIAL AND FEDERAL GOVERNMENTS REGULARLY ASK LOCAL GOVERNMENTS TO FIND WAYS TO DO MORE WITH LESS. THROW IN THE OFTEN-COMPLEX WORLD OF TRADE LEGISLATION COMPLIANCE AND IT’S NO WONDER THAT MANY STAFF FIND PROCUREMENT STRESSFUL.

Fortunately for many local governments, the large volume of certain purchases puts them in the advantageous position of being able to negotiate better pricing and, in some cases, better service. To expand this advantage further, organizations that have similar procurement needs can work together to leverage their combined purchasing power. These steps can help local governments realize increased cost savings and effectively ‘do more with less’.

Of course, combining purchases is not a real option if the process isn’t compliant with relevant trade legislation. No organization is interested in risking fines or prosecution just to save a little money. Legal counsel can provide guidance to ensure the details are correctly in place ahead of any group buying activity.

While there are many local governments that have formed cooperative purchasing agreements on specific goods and services, there are also procurement groups that may be able to fill in the gaps. However, as not all group purchasing organizations are created equal, it may be beneficial to consider certain factors such as (1) whether or not the organization supports local dealer networks, (2) if it works with the local municipal association, (3) how open its procurement process is, (4) if it has representatives available to meet and provide answers or support, and (5) if it’s able to provide peace of mind in legislative compliance.

At the Canoe Procurement Group of Canada, we’re proud to be a not-for-profit buying group focused on the local government, not-for-profit, and public sectors. Because of our municipal roots (the Canoe brand was

built through its collaboration with municipal associations across Canada, including CivicInfo BC), we have grown our offering to over 200 suppliers in more than 60 categories, the majority of which are used by local governments every day. Construction equipment, office supplies, bulk fuel, tires, snow removal, playground supply, and more are available via cooperative contracts that have already been tendered on behalf of our members.

Take a look at the many products and services available to you today at canoeprocurement.ca or give us a call at 250.215.1818 to learn about how we can help you with both economic procurement and legislative compliance.

A program originally created by the Rural Municipalities of Alberta, the Canoe Procurement Group of Canada combines the purchasing power of over 5,000 public and not-for-profit organizations throughout Canada. Through Canoe, local governments may access to a wide range of trade-compliant products and services at preferred rates. CivicInfo BC is the Canoe Procurement partner in British Columbia

JESSE PATENAUDE , MMP is the Manager of Business Development for the Canoe Procurement Group of Canada. Jesse has accountability for business development Canada-wide. Prior to joining Canoe, Jesse spent 20 years in the heavy equipment industry, specifically with Caterpillar and Volvo CE product lines. Jesse holds a designation as a Maintenance Management Professional along with Blue and Red Seal journeyman certifications.

HOWDY PARTNER! YOU WILL NOW BE ACCOUNTED FOR!

NOW THAT THE EXERCISE OF ADOPTING THE ARO ACCOUNTING STANDARD IS COMPLETED (I KNOW: “HA, HA”), IT’S TIME TO TURN YOUR ATTENTION TO THE NEXT “BIG” ACCOUNTING STANDARD TO BE IMPLEMENTED. PS3160 PUBLIC PRIVATE PARTNERSHIPS (P3) IS REQUIRED FOR ADOPTION FOR LOCAL GOVERNMENTS’ FISCAL 2024 YEAR-ENDS (TECHNICALLY, PS1150 SHOULD HAVE PREVIOUSLY LED YOU TO THE IPSAS 32 GUIDANCE , BUT WE’LL SET THAT ASIDE).

P3s have been used for many years as an alternate method of delivering public services and infrastructure to accomplish several objectives, including risk transfer, leveraging private sector expertise and avoiding public sector debt. Unfortunately, it is this last objective that PS3160 addresses as P3s that are scoped in will result in future financial obligations to be recognized on the statement of financial position, along with the related asset.

To be within scope of PS3160, a P3 must meet the following three criteria:

1. Private sector designs, builds, acquires or betters new or existing infrastructure;

2. Private sector partner finances the acquisition/ construction of infrastructure past the point where it is ready for use;

3. Private sector partner is obligated to operate and/or maintain the infrastructure on an ongoing basis.

If you’re not sure if you have an agreement that meets the recognition criteria, ask yourself: i) will my organization benefit from the use of the infrastructure to provide services to the community and is my organization exposed to related risks? ii) does my organization control the infrastructure and access to the related benefits including specifying the purpose of the asset, who can access the asset and its future economic benefits; iii) will my organization retain a significant residual interest that exposes it to risks associated with the asset? If the answers are yes, you likely have a P3 subject to PS3160.

Once you have determined that a P3 arrangement is scoped in the fun begins. The agreements are typically quite complex, and the accounting gymnastics is not for

the uninitiated. The resulting debits and credits are the culmination of a myriad of assumptions, financial inputs and modelling resulting in a non-financial asset being recorded, along with a financial liability representing future payments (liability model), and/or a deferred revenue component (user-pay model) representing a performance obligation or future revenue stream conceded to (and the potential “upside” for) the private sector partner. It therefore results in the erosion of the net financial asset/net debt measure similar to debt financing, eliminating one of the objectives noted above. Disclosure requirements are also quite extensive but similar to what is required for leasing and debt.

As always for complex accounting standards, the devil is in the details so if you are unsure about your specific situation or how to deal with it, it’s a good idea to discuss with your auditor sooner rather than later to allow time to prepare. More detailed information to get you started can be found in BDO’s At A Glance document .

BRIAN SZABO is a partner in the Vancouver office of BDO Canada. He has been providing auditing and advisory services to the public sector, in particular to local governments, for over thirty years. Brian is a Lifetime Member and former director of the Government Finance Officers of BC and is a regular contributor to GFOABC content and presenter at its conferences and other professional development sessions. He is also a long-time course facilitator for the Chartered Professional Accountants of BC and has authored a number of national courses.

NATIONAL DENTAL PROGRAM

NEW DETAILS AND POTENTIAL IMPACT ON PLAN SPONSORS

IN LAST YEAR’S FEDERAL BUDGET (“BUDGET 2022”) IT WAS ANNOUNCED THAT A NEW CANADIAN DENTAL CARE PLAN (“CDCP”) WOULD BE ROLLED OUT. DETAILS WERE SCARCE AT THE TIME, HOWEVER, THE SCOPE AND IMPACT TO EMPLOYERS HAS GRADUALLY BEEN CLARIFIED

WHO IS COVERED AND WHAT COVERAGE IS AVAILABLE?

The CDCP coverage was originally rolled out in Bill 31, which received royal assent in November 2022. The first stage was launched in December 2022 and coverage was offered as follows:

• A tax-free lump sum benefit amount per year per child under age 12 was provided, with the amount varying depending on annual household income ($650 for less than $70,000, scaled up to $260 for family income less than $89,999).

• Parent/guardian must attest that the child has no access to private dental coverage and will have out-of-pocket Dental expenses.

In subsequent updates provided through Budget 2023, the federal government announced that individuals under 18, seniors and persons with disabilities will receive coverage by the end of 2023, and eligibility will be expanded to all those who are eligible by 2025. The coverage will only be available to uninsured Canadians.

We expect the CDCP will have a limited impact on most group benefit plans for active populations. It will primarily impact retiree dental benefit plans and individual dental insurance markets as members may be eligible for, and opt to receive coverage from the CDCP instead of continuing their current coverage.

HOW WILL THIS IMPACT EMPLOYERS?

A key requirement for members to receive coverage under the CDCP is that they need to be uninsured for dental coverage. As a result, Employers will now be responsible for reporting their members’ eligibility for dental coverage on their T4/T4A reporting beginning in the 2023 tax year.

We recommend that employers consider the following as you prepare for this reporting:

1. Employers and their insurance carriers should be ready to have a full listing prepared of all individuals who are eligible for coverage on December 31, with further thought given to special circumstances:

• Ensuring that historical opt-outs and any special subgroups (e.g., retirees and individuals on LTD with continuation of coverage) are included on this list.

• Ensuring that waiting periods are considered.

• Being prepared for member questions.

2. While it has not been shared within Bill C-47, it is our preliminary understanding that the new box added to the T4 is Box 45, while the new box added to the T4A is Box 015 (this may be subject to change).

We encourage plans to discuss this matter with their accounting/payroll resources to ensure a clear understanding of the specific format that information will be disclosed on T4/T4As.

ABOUT THE AUTHOR

This article has been drafted on behalf of the UBCM Benefits Plan, a collective of approximately 130 municipal and affiliated groups across British Columbia. If you have any questions about the Plan, please contact Jenn Hanna (GroupBenefitsPlan@ubcm.ca) and and we would be pleased to assist you

PS 3280 ASSET RETIREMENT OBLIGATIONS: WHAT WE’VE LEARNED SO FAR

THE DECEMBER 31, 2023, IMPLEMENTATION DATE FOR PS 3280 ASSET RETIREMENT OBLIGATIONS (“PS 3280” OR “ARO”) IS JUST A FEW MONTHS AWAY FOR LOCAL GOVERNMENTS. THE NEW ACCOUNTING STANDARD REQUIRES PUBLIC SECTOR ENTITIES TO RECORD A LIABILITY FOR RETIREMENT ACTIVITIES RELATED TO TANGIBLE CAPITAL ASSETS THAT ARE LEGAL OBLIGATIONS.

Public sector entities with March 31 year-ends have now implemented ARO and have completed most of their year-end audits. ARO implementations and audits have generally gone smoothly, but there were some valuable lessons learned that can help local governments as they continue with their ARO implementation journey:

• Start early: Starting early and involving auditors throughout the process are the most definitive indicators of ARO success. The implementation process has consistently taken longer than anticipated by finance staff and the effort to find missing information and refine estimates is extensive. Auditors have added value by identifying technical issues such as missed inscope AROs, mathematical inaccuracies in calculations, and incorrect journal entries early in the process. Local governments are encouraged to closely monitor timelines and engage with their auditors in advance of year-end.

• Completeness is key: A key audit risk is the completeness of the ARO liability and as a result, auditors are just as interested in out-of-scope ARO as they are in in-scope ARO. ARO audits have focused on the process applied to identify in-scope assets and the rationale for certain ARO being deemed out of scope. Local governments should clearly document their rationale for why certain ARO are in or out of scope and include leases, donated assets and assets recorded at nominal values in their analysis.

• Measurement complexities: Many entities have been surprised by the complexity of measuring ARO. Finding relevant cost information, determining an appropriate retirement date and discount rate (if applicable), and accurately calculating the amounts to record are just some of the measurement issues encountered. Technical guidance in PS 3280 is detailed, requires judgment, and may be difficult to apply to individual assets. It is critical that local governments ensure all measurement activities are thoroughly reviewed by someone other than the preparer. Consideration is also required for how to update the estimated liability after the initial ARO adoption.

• Financial statement presentation and disclosure: Many entities did not draft note disclosures and mockup their financial statements for ARO in advance of yearend. This resulted in more than expected disclosures required and the restatement of prior year balances under the retroactive or modified retroactive transitional approach. Local government staff are encouraged to share disclosures and financial statement presentations with their Councils and auditors in advance of year-end to explain the changes and gather feedback.

• Documentation: Some audits of March 31 year-end entities were delayed because management were unable to provide their auditors with ARO work papers and documentation. Auditors expect that, at minimum, their clients will provide them with a memo outlining the ARO implementation process and calculations of the liability. Where this information is not available, it results in additional time to perform the audit and higher audit fees. Local governments are encouraged to discuss expectations for ARO documentation with their auditor in advance of year-end.

Local governments can benefit from the lessons learned by earlier adopters of PS 3280. Additional discussion on this topic will occur at the GFOABC/CPABC Local Government Accounting & Auditing Workshop in November.

ASIFA HIRJI is a Partner with KPMG providing public sector audit and accounting advisory services. Asifa is the BC Local Government Sector Audit Leader and BC ARO Leader for KPMG. Asifa has co-facilitated GFOABC’s ARO workshops, which provided insights into the ARO implementation process. She has also co-authored KPMG’s ARO Interpretative Guide.

BUILD BACK BETTER

OVER THE PAST FEW YEARS, B.C HAS EXPERIENCED A HOST OF CATASTROPHIC EVENTS. FLOODS, FIRES, A HEAT DOME, AND PANDEMIC HAVE FORCED SEVERAL COMMUNITIES TO BUILD BACK FROM DEVASTATING CIRCUMSTANCES. WHILE THE RECOVERY PHASE SEEMS LIKE THE IDEAL TIME TO CREATE A MORE RESILIENT COMMUNITY BY BUILDING BACK BETTER, LOCAL GOVERNMENTS FACE CHALLENGES AND OBSTACLES TO ACHIEVE THIS OUTCOME.

With the recent experience of communities such as the Village of Lytton, we can see that the enormity of the costs involved hinder the ability to recover at a reasonable pace. This does not even incorporate any consideration for building back better.

FUNDING YOUR RECOVERY

Insurance is designed to transfer the risk of a financial loss to an insurer. While it plays an essential role in funding recovery efforts, it has limitations in terms of what can be covered and what limits you can obtain. Often, the cost to build back better either is not factored into coverage or coverage is limited to a portion of the total insured costs. This often means there is a clear gap in the funding required for recovery.

Local Governments rely heavily on the Disaster Financial Assistance (DFA) program to assist with the recovery process. Emergency Management BC manages this program which provides reimbursement of up to 90% of eligible expenses. This program can help fill the gap when insurance is unavailable, or limits have been exceeded.

Both DFA funding and insurance intend to return local governments to the position they were in prior to the loss occurring. To fill any gaps that may be left by these recovery methods or assist with the cost of reinstating assets to a “build back better “standard, local governments can establish reserves for emergency events. While it can be difficult to determine how much is enough, having some sort of an emergency event fund will assist with additional costs.

There are also human costs to consider - the impact to local government staff from the event itself and the recovery process. We have seen how the COVID-19 pandemic created overworked and burnt-out staff in our healthcare system, with clear impacts to service. Catastrophic emergency events can create a similar situation in local government and lead to a struggle to retain staff. Employees on the frontlines of post-loss recovery are another real cost to plan for.

WHAT NEXT?

The cost of recovery is significant but the cost to build back better is even greater. Understanding how a catastrophe can impact your local government is an important exercise to help determine where your funding gaps are and how best to minimize them. Additionally, having an extra cushion will allow for building back better to be an option. From a staffing perspective, business continuity and cross training will assist in building capacity, where it is needed most.

We recommend you review and understand what you have, and consider gaps in:

1. Your insurance;

2. The DFA;

3. Reserves;

4. Your business continuity plan.

For any assistance, contact the MIABC at AskUsAnything@miabc.org.

SANDRA

is the

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.

Manager

is the MIABC’s Director of Insurance Services. With 25 years of experience in the insurance industry, and 15 years with the MIABC, she’s gained a wealth of knowledge in issues facing local governments. In her role, Nicole ensures local governments have access to the insurance products and services they need.

NICOLE

PURVES BA, CIP

MAYO CRM, RIMS-CRMP, CBCP

MIABC’s

of Risk Management Services

UNLEASHING THE POTENTIAL OF YOUR CHART OF ACCOUNTS

WHEN IT COMES TO FINANCIAL MANAGEMENT, THE CHART OF ACCOUNTS (COA) PLAYS AN ESSENTIAL ROLE AND CAN EITHER HELP OR HINDER CFOS AND THEIR TEAMS DEPENDING ON HOW IT IS STRUCTURED AND BEING MANAGED. IN THIS ARTICLE, WE’LL TOUCH ON THE AREAS WITHIN MUNICIPAL FINANCE THAT WE’VE SEEN GREATLY IMPROVED BY REVAMPING AND STANDARDIZING THE COA, AS WELL AS THE BROADER PICTURE OF ADOPTING A COMMON STANDARD COA.

SYMPTOMS OF A DATED OR BROKEN COA

Regardless of which software is in use, symptoms of a dated or broken COA are often the same:

• Time Mismanagement: Unnecessary time spent managing, communicating, and cleaning up financial information, which detracts from focusing on other areas such as strategic initiatives and financial planning.

• Coding Errors: Confusion around COA can lead to errors, compromising data integrity.

• Lack of Drill Down: Inability to view data at various levels of detail.

• Organizational Rigidity: Account codes that cannot adapt when organizational changes are made.

• Limited Space: Constrained account groups lead to fragmented information.

• Accessibility Issues: Key information is not readily available.

• Missed Deadlines: Failure to meet reporting timeframes.

• Integration issues: Synchronizing data and adopting new software becomes cumbersome.

These challenges have been exacerbated by the growing demands on municipal finance. In addition, evolving technologies may have had a role by requiring adjustments to the COA that potentially undermined its original framework.

Regardless of how these situations arose, it is worth having conversations to recognize that this is not a unique problem and will continue to be a challenge, especially with the rapid change in technologies that require organized and clean information.

HOW TO RIGHT THE SHIP

To design an effective COA, we would often consider the following two areas:

1. Reporting Alignment: Prioritize alignment with financial statements, provincial reports, and municipal budgets.

2. Usability: Optimize code structure to be hierarchical, intuitive, consistent, and well-defined. Ensure scalability, with one suggestion being to create longer segments that combine department codes with their unique activities.

Designing a COA is no small task though. And this is why we promote the adoption of a shared standard COA. Not only is this to ensure it can meet the needs of municipal operations, but also stand the test of time.

A CASE FOR A SHARED STANDARD CHART OF ACCOUNTS

While municipalities have their own unique coding requirements, there are common pieces such as the Public Sector Accounting Standards (PSAS) and provincial regulatory reporting. These represent the larger roll-ups for a COA framework, but don’t create any barriers to also

allowing municipalities to create custom granular codes for specific purposes.

By moving toward a shared standard, municipalities can experience significant gains:

• Share best practices (the exchange of successful strategies and solutions)

• Establish common terminology.

• Risk mitigation (by adopting a tested and proven COA design)

• Support accurate benchmarking

CONCLUSION

Investing in a clean, proven Chart of Accounts can seem daunting, but an exercise that significantly helps municipalities in many areas such as reporting, budgeting, and preparing for the adoption of new software.

Unleashing the potential of your Chart of Accounts isn’t merely a technical exercise; it’s an investment in building a more resilient, efficient, and adaptable municipal finance system that supports the broader goals of governance and public service.

BRITTANY STARK , CEO of Municipal 360, has specialized in municipal chart of account (COA) design and implementations since 2014. With a technical background and through collaboration with multiple finance entities, she’s focused on leveraging a standard chart of accounts framework to enhance municipal financial management. Through this unique approach, Municipal 360 delivers cost-effective, innovative solutions, streamlining financial reporting while also unifying municipal finance practices across Canada.

BEYOND CREDIT RATINGS:

5 FACTORS TO CONSIDER FOR DIVERSIFICATION & RISK MITIGATION

THERE’S NO DENYING THE BENEFITS OF PORTFOLIO DIVERSIFICATION, BUT CHOOSING THE RIGHT FINANCIAL INSTITUTIONS CAN FEEL OVERWHELMING.

This drives many decision-makers toward credit ratings. Assigned by third-party issuers, these “grades” are intended to tell us how financially sustainable an FI is — and don’t get us wrong, they are helpful indicators, but they shouldn’t be the only factor in choosing an FI. Below, we explain where ratings alone fall short and share five other factors municipalities can leverage to make informed investments and mitigate risk.

WHERE DO CREDIT RATINGS FALL SHORT?

First off, credit ratings don’t accurately reflect real-world risk. In the example of Silicon Valley Bank, we see an institution that had a triple-B rating and was the fourthlargest bank in the US ahead of its collapse.

Secondly, the credit rating process comes with a lag, meaning that a third-party rating may not accurately reflect real-time opportunity or risk. Ratings are determined by a committee and come with a level of tolerance for short-term flux that may not be aligned with your municipality’s risk tolerance.

Finally, by relying exclusively on highly rated institutions, you could miss out on valuable opportunities for diversification with smaller non-rated institutions.

LOOK BEYOND CREDIT RATINGS

Below are five additional considerations for evaluating FIs:

1. Capital Adequacy Ratio: Capital adequacy ratio (CAR) measures an institution’s capital against the risk it takes on. In the event of a credit crisis or market disruption, institutions with a low ratio may need to act more swiftly and dramatically to remain stable and mitigate risk - many regulators require the minimum CAR to be 10.5% under BASEL III.

2. Liquidity Ratio: An institution’s liquidity ratio compares liquid assets against all of the deposits and loans it carries. An FI with a high ratio of liquid assets is more prepared to pay its depositors and borrowers back. That said, a high liquidity ratio often comes with a lower potential for profit.

3. Deposit Insurance: One of the more obvious considerations on this list, deposit insurance can help you predict what might happen in the unusual (but not impossible) event of institution collapse, and better assess your overall risk.

4. Geographic Risk: Geographic risk is also important to consider. While keeping money local is a common investment instinct, you may decrease your vulnerability to regional economic flux by investing with FIs with a wider geographical spread.

5. Historical Profitability: By examining historical profitability fluctuations year over year, you will gain a better understanding of an institution’s ability to manage economic changes, giving you better insight into what might unfold.

Streamlining assessment: While there are other factors to consider in your evaluation, this is a great starting point. The measures above will help you move beyond ratings and toward better-informed investments.

If you’d like to streamline your comparison process, you can lean into free platforms like Yield Exchange which provides an easy way to diversify your portfolio.

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.

COMPREHENSIVE FINANCIAL PLANNING: BUDGETING WITH A PURPOSE

FINANCIAL PLANNING IS BECOMING ESSENTIAL TO ALIGN ANNUAL BUDGETS WITH OPERATIONAL PLANS. WITH ESCALATING PRESSURES ON LOCAL GOVERNMENTS, THERE ARE GREATER SERVICE DELIVERY EXPECTATIONS AMONG RATEPAYERS.

A comprehensive financial plan showcases how an organization’s strategic objectives are achieved through the allocation of limited resources. A well-written plan simplifies complex calculations and presents rate drivers in an understandable manner, while illustrating the impact of funding decisions on ratepayers.

To help facilitate this daunting task, GFOA established the Distinguished Budget Award Program in 1984 to primarily assist local governments with preparing budget documents that are aligned with GFOA best practices, and recognize communities for their budgeting efforts.

As a volunteer evaluator of the GFOA Distinguished Budget Award Program, I have outlined the following six steps for local governments to utilize in developing a comprehensive financial plan and communicating the budget:

1. Provide a community profile outlining boundaries, demographics, historical background, and challenges to offer unique context and points of reference for the readers.

2. Relate the strategic objectives to the budget to demonstrate how the financial plan aligns with the organization’s vision and mission.

3. Link outcome-driven performance measures & trends to the departments and programs with a primary focus on addressing the strategic objectives. The metrics will serve to acknowledge past achievements and illustrate current obstacles.

4. Explain the framework & guiding documents used in the development of the financial plan to readers. Clarify the legislative and policy factors, along with the fund structure in a manner that is easily understandable to avoid misconceptions.

5. Identify the levels of service, correlating them to the departmental summaries, and disclose the implications of the budget to the stakeholders.

6. Summarize the impact on ratepayers. Present the financial information in a concise manner that is easily understandable utilizing charts, graphs, and illustrations to enhance clarity on the consequence of the budget to the ratepayers.

Deciphering the budget is challenging enough for nonfinancial readers. Legislative requirements prescribed through the Community Charter or Local Government Act mandate the financial plan requirements. The complexity is further compounded by internal policies governing the use and collection of Reserves, Debt, Revenue, and Taxation. Solely providing the Financial Plan bylaw for interpretation is no longer sufficient.

A Comprehensive Financial Plan guides users through the intricacies while delineating the pertinent information they are ultimately seeking. By incorporating outcome-driven performance measures, the Financial Plan will define the cost and impact of services provided in the pursuit of achieving the government’s vision as identified in their strategic objectives.

PSD Citywide’s Financial Advisory Services and Citywide Budgeting software is here to help communities with all of their financial needs; from the beginning of data collection and determining KPIs, linking strategic operations to financial plans, and eventually translating the budget to stakeholders, our experts can help make your community one of the next GFOABC Budget Award winners.

PETER PAINE is the Senior Manager of Financial Advisory Services at PSD Citywide. He is an established accounting professional with over 12 years of experience in corporate accounting, budgeting, forecasting, and financial analysis. Peter leads PSD Citywide’s Financial Consulting division supporting public sector finance departments across North America. His team provides support to local governments with long-term financial plans, asset management plans, financial statement preparation, policy and process review, as well as other Financial Officer support.

STOP OVERPAYING FOR WORKSAFEBC COVERAGE: HOW TO CONTROL YOUR PREMIUMS

LIKE ALL OTHER EMPLOYERS IN BC, LOCAL GOVERNMENTS ARE REQUIRED TO PAY PREMIUMS TO WORKSAFEBC TO MAINTAIN COVERAGE FOR THEIR EMPLOYEES. WORKSAFEBC’S NO-FAULT INSURANCE SYSTEM MEANS THAT THE ACTUAL COSTS OF WORKPLACE INJURIES AND ILLNESSES ARE PAID FROM ITS COLLECTIVE INSURANCE FUND, REGARDLESS OF WHO WAS AT FAULT.

The premiums you pay are what fund this system, and the amount you owe is calculated based on several factors that WorkSafeBC considers indicative of your organization’s risk. Considerations such as your industry classification and payroll are relatively fixed, and you are likely not looking to make significant changes to either. It is the most significant component to the calculation of premiums, however, that you do have control over: claims costs.

While healthcare costs paid out by WorkSafeBC are also added to your account, they are typically much less impactful to premiums than the cost of wage replacement – what is referred to as lost time. More time off work equates to more wage replacement paid out by WorkSafeBC, which ultimately leads to higher premiums for your organization. You may think that once a worker is injured and is off from work, you have no recourse to mitigate time loss. However, this is almost never the case! There are numerous of strategies local governments can implement to minimize the amount of time an employee is off work and reduce claim costs.

RETURN-TO-WORK PROGRAM

Having a comprehensive, clear, and well-communicated return-to-work program is, in and of itself, a great start to reduce claim durations. When your employees understand what is expected of them in the event of an injury or illness, before anything occurs, they are more likely to adhere to the process once an accident does happen. Without explicit, enforced procedures, an injured worker may be more likely to take advantage and remain off work.

OFFER MODIFIED DUTIES

One of the most essential steps of all successful return-towork programs is a swift and appropriate offer of modified duties. Every organization should have a pre-determined list of available modified duties at any given time and should consider a variety of possible physical restrictions. If you can offer a worker suitable duties immediately postinjury, you may be able to avoid lost time altogether.

MEDICAL INTERVENTION

This one is a bit trickier to coordinate, and more costly to an organization. If there is a delay to an employee’s return to work due to the availability of healthcare, employers may choose to seek out medical diagnostics or treatment to expedite recovery. Wait times for things such as MRIs, CT scans, and specialist appointments can extend a worker’s absence unnecessarily, and by intervening earlier, an organization can prevent a huge amount of time loss.

PROTESTS & APPEALS

The reality is that WorkSafeBC decisions tend to favour workers over employers. If an organization doesn’t actively participate in the adjudication process, it is very likely that a large amount of partially or fully illegitimate claims are accruing costs on their WorkSafeBC account. While preparing to submit protests and appeals can require a fair amount of education on WorkSafeBC policy and regulation, the benefits are likely to outweigh the cost in the long run.

THIRD-PARTY DISABILITY MANAGEMENT

If the strategies sound like they will require an excessive number of internal resources – too many people, too much time, or too much money – an effective alternative is hiring a third-party consultant to handle your occupational disabilities. You benefit from having access to the expertise, best practices, and resources of a dedicated and experienced specialist, while investing comparatively very little. Oftentimes, partnering with a skilled disability manager can pay for itself, with the savings you will see in the reduction of your annual WorkSafeBC premiums.

JEN NICHOL , Communications & Business Support Manager, at TeksMed Services began her career in the disability management industry six years ago and has since become intimately familiar with the various workers’ compensation systems across the country. Her expertise and passion for writing make her a fantastic educator on the best practices of occupational disability management.

DEVELOPING RISK APPETITE AND TOLERANCE STATEMENTS

ONE KEY STEP IN DEVELOPING AN ENTERPRISE-WIDE RISK MANAGEMENT (ERM) FRAMEWORK IS ESTABLISHING STATEMENTS OF RISK APPETITE AND RISK TOLERANCE, WHICH SERVE AS GUIDEPOSTS FOR STRATEGIC DECISIONS; THRESHOLDS FOR RISK METRICS; AND BENCHMARKS FOR ASSESSING AN ORGANIZATION’S COMFORT WITH ITS OWN RISK PROFILE.

STEP 1: WHO SHOULD BE INVOLVED?

Participants should include an organization’s executive team, as they are most familiar with and responsible for achieving its mission and strategic objectives. It’s also important to invite subject matter experts for necessary insight into certain risks, including anyone instrumental in achieving strategic objectives or managing risk mitigation. Include risk management group members— whether they have formal or ad hoc responsibility. And finally, limit the group’s size; up to 12 members should suffice.

STEP 2: DRAFTING STATEMENTS

Theoretically, risk appetite and tolerance statements could be drafted through a series of questionnaires or by using software that allows for deep collaboration. However, in my experience, the most efficient way is through a workshop.

RUNNING A RISK APPETITE & RISK TOLERANCE WORKSHOP

Workshops present challenges, but training, facilitation, and clear objectives will help address them.

1. Although it may prove difficult, try to schedule workshops so that everyone can participate.

2. Ensure participants know what is expected of them during the workshop. Send an invitation including the agenda, location, and housekeeping rules.

3. Participants should understand risk appetite, tolerance, and mitigation; inherent and residual risk; and risk types. A brief training before the workshop will ensure consistent, basic knowledge and promote participation.

4. Ask invitees to bring corporate policies for which they are responsible. These documents often serve as a starting point for risk tolerance statements.

5. Hire a professional facilitator who is mindful of assessment bias to prevent/negotiate conflict, encourage participation by all, and understand when to table a discussion and move on.

6. If the group is large or has trouble reaching consensus, hold break-out sessions by topic (e.g., risk type), then bring recommendations back to the full group.

7. At workshop’s end, summarize outstanding items, assign ownership, discuss next steps, and communicate a timeline. Then follow up with a summary email so that everyone understands expectations.

ED MCCAULLEY is a Principal Consultant at F.H. Black & Company Incorporated. Specializing in risk management, he collaborates with our clients to mitigate organizational risks by redesigning business processes and selecting, implementing, and supporting enabling technologies. Ed is an attorney, holds a Certified Public Accountant (CPA) designation, a Juris Doctorate (JD), a Master of Business Administration (MBA), a Bachelor of Business Administration Degree (BBA) in Accounting, and is the author of Back to Basics: Balance Sheet Reconciliations which was featured in the Internal Auditor Magazine.

GFOABC ONLINE FORUMS

WHY DO YOU COME TO THE FORUM?

As someone newer to the municipal (and professional) world, I am keen to know what is on others’ minds. I consider my job description to be “enabling the rest of the City to perform their jobs better through good information and support.” (“Other related duties as required” carries a lot of weight in the union job description…) Using the forum to understand the new challenges practitioners are encountering, the areas where more resources are needed, and the reoccurring frustrations faced across local governments gives me important insight into how to bring value to others and do my own job better.

IS LOGGING ON PART OF YOUR DAILY ROUTINE?

Yes! I’ve got the forum saved to my bookmarks bar, and I like to open it up with my morning coffee alongside the email review. I don’t have email notifications on (unless you “@” tag me or respond to my thread) and this is how I keep up to date.

HOW DO YOU THINK EXPANDED ENGAGEMENT ON THE FORUM AMONG GFOABC MEMBERS CAN HELP THEM IN THEIR DAY-TO-DAY WORK?

There’s a bunch of ways that engagement with the forum can help members in their day-to-day, but some of the best ways it’s helped with mine include:

• Bringing issues not previously identified to the forefront - when Rossland was adopting the ARO standard, we all overlooked our underground assets, and a thread on GFOA was the prompt for me to bring asbestoscontaining pipes up with our public works (which doubled our liability, for better or worse…)

• Providing a base to start on a project - I’ve used the forum to request policies or input on topics when starting many projects. Why reinvent the wheel when someone’s got one spinning elsewhere already?

• Networking - making new connections and collaborating with other local governments makes all of us stronger, and it’s a great venue to connect - like the lunch’n’learn we hosted chatting about AI in Local Government! It’s also great to be able to recognize some forum-familiar faces at in-person events.

WHAT FEATURES OF THE FORUM DO YOU USE THE MOST, (POSTING DISCUSSIONS, COMMENTING ON EXISTING DISCUSSIONS, SEARCHING THE DATABASE FOR INFORMATION, ETC.)?

My post history says I comment more than I start new discussions - I try to respond whenever I have something that may be of value in others’ queries (and hope others do the same). When looking for information, I usually start with a database search as there’s a wealth of information

buried in there. If I don’t find what I’m looking for or need more input, I create my own thread.

WHAT ARE SOME OF YOUR PERSONAL BEST PRACTICES WHEN IT COMES TO ENGAGING ON THE FORUM?

• Share directly in the forum wherever possible - whether files or discussions, much is lost to the future viewers of the forum when discussions move to email. I’m sure we’ve all come across a thread with a great question and a response of “Email me to discuss” which leaves us all wondering…

• Related to that, share often! We’re stronger together, and between all the members, I’m sure there’s at least a millennium of experience… so let’s build up the resources to help guide local government through the next millennium.

• Post specific questions or requests in your initial post so that others can respond in the forum and provide what you’re looking for.

JUSTIN BROGAN is a community-minded young 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.

ques on

GROWING COMMUNITIES FUND

EARLIER THIS YEAR, THE PROVINCE ALLOCATED $1 BILLION IN GRANTS TO LOCAL GOVERNMENTS THROUGH THE GROWING COMMUNITIES FUND. IN THIS QUARTERLY QUESTION, WE SURVEYED LOCAL GOVERNMENTS ABOUT THEIR PLANS FOR ALLOCATING THE GROWING COMMUNITIES FUND GRANT. A TOTAL OF SEVENTY-THREE (73) LOCAL GOVERNMENTS RESPONDED, INCLUDING EIGHT REGIONAL DISTRICTS.

Growing Communities Fund

Sidewalks, curbing and lighting. Solid waste management infrastructure. Storm water management. Transit service improvements. Wastewater conveyance and treatment facilities.

Public safety / emergency management equipment and facilities. (Not funded… Recreation-related amenities.

Childcare facilities. Development finance portions of infrastructure costs that support… Drinking water supply, treatment facilities, and water distribution. Local road improvements and upgrades. Natural hazard mitigation. Park additions/maintenance/upgrades including washrooms/meeting space…

Capital projects that service, directly or indirectly, neighbouring First Nation…

Active transportation amenities. (Not funded by senior level government.)

% of responses when excluding Unknown

% of all responses

At the time of the survey, several local governments were still in the process of deciding how to allocate the grant funds. Among the respondents, 34 per cent mentioned that they had not yet received council approval for any of the grant funds. Additionally, 13 per cent stated that they had council approval for only a portion of the grant spending.

TOP 3 CATEGORIES

According to the survey results, recreation-related amenities emerged as the most common area for allocation. Excluding “Unknown” responses, it was observed that 50 per cent of local governments had allocated a portion of the grant to recreation projects.

These projects encompassed trail expansions, community clubhouse facilities, arena upgrades, and theatre enhancements. This is followed by drinking water supply, treatment facilities and water distribution, and then local road improvements and upgrades as the most common areas allocations have been made.

LEAST POPULAR CATEGORIES

The survey revealed that the least favored options outlined by the Province of British Columbia for utilizing this funding included childcare facilities, the development finance aspects of infrastructure costs that facilitate affordable/attainable housing, and enhancements to transit services.

FULL RESULTS

A graph showing the full results of the survey can be found here (link to graph).

Detailed results for this survey can be obtained by emailing surveys@civicinfo.bc.ca

THE NEXT QUARTERLY QUESTION TOPIC: FINANCE DEPARTMENT STAFFING

Please use this link to be a contributor. This short survey should only take 3-5 minutes to complete.

If you would like to contribute topics for upcoming questions, please contact office@gfoabc.ca or call (250) 382-6871.

DEAN REAR

GOING BACK TO WHEN YOU STARTED YOUR CAREER, WHAT INITIALLY ATTRACTED YOU TO WORKING IN LOCAL GOVERNMENT?

To be truthful, I applied for a position at the City of New Westminster because it had direct reports and I knew that was what I needed for the next step in my career. What surprised me as I started to do research and went for the initial interview was the breadth of services that the City provided and how impactful it was on resident’s daily lives. Being a part of that really appealed to me.

AS YOUR CAREER PROGRESSED, YOU MOVED FROM A MUNICIPALITY TO A REGIONAL DISTRICT. WHAT WAS YOUR BIGGEST LEARNING THOUGH THAT TRANSITION?

The differences were far greater than I anticipated. Moving from a council of 7 to a Board of 40 and having 4 entities each with different enabling legislation was somewhat eye opening. Also, each service function needing to be self-funding for equitable cost apportionment was different from my experience in municipalities. Early on in my time at Metro Vancouver we got into a lot of policy development which was very beneficial for me to get up to speed on the operational differences at a regional district.

The key similarity though was that there are staff in both municipalities and regional districts that are passionate about the work they do and are very dedicated to providing

important services to a public that can sometimes take them for granted. It is very fulfilling to work for an impactful organization with people that believe in what they do.

REFLECTING UPON YOUR WORK, ARE YOU PROUD OF ANY ACCOMPLISHMENTS? WHAT ARE YOU MOST PROUD OF?

In this business, very few consequential actions are delivered singularly and often require multidisciplinary teams. It is very satisfying to be involved in projects that have a great impact on your community, and I really enjoyed some of these projects when I was in Pitt Meadows, in particular the arena renovation and the new library space. At Metro Vancouver the projects are much larger and longer, in the billions of dollars and decades in the making, but it has been both fulfilling and enlightening to be a part of projects like the replacement of the Iona wastewater treatment plant which will improve water quality in the Salish Sea and restore the natural functionality of the mouth of the Fraser River.

Specifically for finance, at Metro Vancouver, the team and the organization worked hard to get to multiyear financial planning and implemented some new modern systems to help get there.

I think I am most proud of just being part of those projects and very proud of how those teams worked together to get those projects done.

WHAT DO YOU FEEL ARE THE PRIMARY CHALLENGES LOCAL GOVERNMENTS FACE IN THE COMING YEARS, AND HOW DO FINANCE OFFICERS HELP MEET THOSE CHALLENGES IN THEIR ROLE?

Local governments are the first point of contact for most people, for example, they wake up in the morning, turn on the shower, flush the toilet, drive on a road or take transit to work. Yet the world is far more complex now and residents have expectations that all levels of government are part of the solution to challenging issues such as housing, climate change, and first

nation reconciliation. However, the tools that local government has available to work on those issues, and in particular, fund the work to address those issues haven’t evolved.

Today’s finance officer has to be very creative in finding solutions. The role used to focus on stewardship for the use and protection of public assets, which in itself is even more complex than ever due to evolving technology and sophisticated threats, but now the role must also include advocacy for transforming the funding mechanisms for critical public services.

WHAT ARE SOME OF THINGS YOU WILL MISS MOST ABOUT WORKING IN LOCAL GOVERNMENT?

I think what I will miss specifically about local government will be what initially appealed to me when I started, and that is being a part of an organization that is impactful and benefits the community that you are part of.

Many people want to make a difference but are unsure how they can. In local government, everyone who is part of that structure makes a difference to their community, even if you are not directly interacting with or providing front line services. For example, the staff in finance that pay the bills or pay the staff are just as important to the delivery of important local government services as anyone else and can take the same pride in the accomplishments of the organization.

WHAT ADVICE WOULD YOU GIVE SOMEONE CURRENTLY WORKING IN LOCAL GOVERNMENT?

Three things:

1. While it is fulfilling, local government certainly isn’t easy. It sometimes takes a lot of perseverance to effect change, both politically and internally through an organization. Have realistic expectations and make sure you prepare yourself mentally and physically for the long game.

2. Always question your assumptions and challenge your own thinking. Ensure the non-finance members on a project team know that you are open to your assumptions being challenged and engage in cross function debate, this almost always will make the outcomes better.

3. Get out of the office and see the facilities and get to know the staff in the field. This will benefit your understanding of the business and create beneficial relationships for when you have issues to resolve. Field staff are very proud of their work and they are always pleased when someone from head office or city hall comes out to see their contributions.

NOW THAT YOU ARE RETIRED, WHAT DO YOU PLAN ON DOING NEXT? (THIS ONE IS DESIGNED TO BE LIGHTHEARTED. THE ANSWER CAN BE SHORT)

Honestly, the first step is to just get some rest. Following that, I was asked this a lot when I announced my retirement and so I had to develop a consistent, easy answer and that is:

• Discover

• Learn

• Create

• Connect

I want to learn new things and skills, meet new people and reconnect with others I have lost track of, and be creative with some more artistic pursuits.

DEAN REAR recently retired with almost 25 years of experience in local government finance, including the City of New Westminster, the City of Pitt Meadows, and most recently, Metro Vancouver. Metro Vancouver is the regional local government made up of four legal entities (Metro Vancouver Regional District, Greater Vancouver Water District, Greater Vancouver Sewerage and Drainage District, and Metro Vancouver Housing Corporation) through which the critical services of water, liquid waste, solid waste, regional parks, regional planning, air quality management, and public housing are provided to almost 2.5 million residents through 21 municipalities, one electoral area and one treaty first nation.

Collector’s Corner:

THE ROLE OF THE COLLECTOR

TAX COLLECTORS HAVE BEEN AROUND FROM ANCIENT TIMES. AS BOB DYLAN WROTE IN 1964 “THE TIMES THEY ARE A’CHANGIN”. INDEED, THE TIMES HAVE CHANGED. WHAT IS THE ROLE OF THE COLLECTOR IN 2023? THE COMMUNITY CHARTER DEFINES “COLLECTOR” AS “THE MUNICIPAL OFFICER ASSIGNED RESPONSIBILITY AS COLLECTOR OF TAXES FOR THE MUNICIPALITY”.

So, what is the basic role of the collector?

1. To enforce the legislation - to act in good faith to comply with the legislation for the benefit of the public at large.

2. To be good stewards of the taxpayer’s money – we hold the taxpayer’s money in trust to be used to pay for services.

3. To be moral and treat all taxpayers fairly and equitably while acting in the best interest of all taxpayers.

4. To help taxpayers understand the process of taxation and the value of services provided.

5. To provide excellent customer service to taxpayers.

Has the role of collector changed? I asked a few of our colleagues that question. Their replies were:

“Over the past decade, the role of the tax collector has undergone significant transformations, largely driven by advancements in technology and changing economic landscapes. … Property tax has become increasingly complex and diverse in a changing economic environment. … Moreover, the job has embraced a more proactive approach in fostering better communication with taxpayers, aiming to educate and assist them in understanding the property tax system. … In this dynamic environment, tax collectors have become instrumental in shaping tax policies that promote economic growth while ensuring a fair and equitable tax system for all.”

“The reduction in walk in customers (due to COVID) has helped us to be able to spend more time with customers

that really need our help. ... With the deferments and homeowner grants being taken over by the province, this has reduced administration time. Also, without the HOG on the tax notice we have gained valuable real estate on our tax notice. … used for instructions on how to claim the grant, … to advertise how to pay online, … paying other fees & charges and applying or renew deferment. The downside is that customers get confused as to the HOG and speculation tax. The new legislation around the tax sale is going to be particularly challenging and costly.”

“Prior to the last several years, the role of the Collector from my perspective remained relatively stable. Changes in legislation and provincial processes were relatively minor in the overall scheme of things. The recent centralization and conversion to an online platform for the HOG and tax deferment programs has changed things quite significantly. … The reduction of the administrative burden is welcomed but we have had to adjust the ways in which we support and connect with taxpayers. That change has been taking place in the environment of significant technological change in general and the increasing expectations of taxpayers to provide tax information in a variety of ways and in real time as compared to the past. … The change to the significant (tax sale) advance notification seems to be signalling an expectation/requirement for the Collector to play a role in the social aspect of the ability to pay taxes.”

Yes, times have changed from ancient times, even 2020. As collectors, we have a unique skill set to fulfill our role and meet these challenges: competence, knowledgeable, trustworthy, integrity, leadership and communication skills. Whatever changes and challenges are waiting for us in the future, we’re ready to fulfill our role as collectors.

DOUG STEIN has worked in municipal finance for over 30 years. In 2011 he retired from his position as Manager of Revenue Services for the District of Saanich. Doug leads the Collectors’ Forum, is a GFOABC Life Member, and a CPA, CMA.

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office@gfoabc.ca • (250) 382-6871