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Home My WebLink AboutAFC 2023-07-11 Agenda.pdfCity of Maple Ridge Audit & Finance Committee AGENDA – REGULAR MEETING Tuesday, July 11, 2023 at 5:00 pm Meeting Access Information Audit & Finance Committee (AFC) meetings are held in a hybrid format. Members of the AFC and the public can join the meeting in-person in the Blaney Room at Maple Ridge City Hall or remotely using the following access information: Join the meeting from your computer, tablet or smartphone https://mapleridge-ca.zoom.us/j/87661872304 Or join the meeting using your phone Dial: 1-778-907-2071 Meeting ID: 876 6187 2304 1.CALL TO ORDER 1.1. Land Acknowledgment 2.APPROVAL OF THE AGENDA 3.ADOPTION OF MINUTES – April 25, 2023 4.DELEGATIONS 5.NEW AND UNFINISHED BUSINESS 5.1. Permissive Tax Exemption Policy Review 5.2. Financial Policy Review 5.3. Investment Overview 6.QUESTION PERIOD FOR THE PUBLIC 7.NOTICE OF CLOSED MEETING Recommendation: THAT, pursuant Section 90 of the Community Charter, this portion of the meeting be closed to the public as the subject matter being considered relates to the following: •90(1)(l) – Discussions with municipal officers and employees respecting municipal objectives, measures and progress reports for the purposes of preparing an annual report under Section 98 [annual municipal report]. AND, any other matter that may be brought before the Committee of Council that meets the requirements for a meeting closed to the public pursuant of Section 90 of the Community Charter or Freedom of Information and Protection of Privacy Act. 8.ADJOURNMENT Next Meeting: To be determined Agenda Submission Deadline: To be determined QUESTION PERIOD Question Period provides the public with the opportunity to ask questions or make comments on subjects that are of concern to them. Each person will be given 2 minutes to speak. Up to ten minutes in total is allotted for Question Period. mapleridge.ca City of Maple Ridge Audit & Finance Committee MEETING MINUTES The Minutes of the Regular Meeting of the Audit & Finance Committee held in the Thornhill Room, City Hall on April 25, 2023 at 9:00 am COMMITTEE MEMBERS PRESENT Mayor Ruimy Councillor Korleen Carreras, Chair Councillor Jenny Tan STAFF MEMBERS PRESENT Scott Hartman Chief Administrative Officer Catherine Nolan Deputy Director of Finance Trevor Thompson Director of Finance Christina Crabtree General Manager Corporate Services Trevor Hansvall Accountant Patrick Hlavac-Winsor General Counsel and Executive Director, Legislative Service GUEST Brian Szabo, CPA, CA Auditor, BDO Canada 1.CALL TO ORDER – 9:00 am 2.APPROVAL OF THE AGENDA R/2023-AFC-006 It was moved and seconded That the agenda for the April 25, 2023 Audit & Finance Committee Meeting be approved as circulated. CARRIED UNANIMOUSLY 3.ADOPTION OF MINUTES R/2023-AFC-007 It was moved and seconded That the minutes of the February 7, 2023 Audit & Finance Committee Meeting be adopted as circulated. CARRIED UNAMIMOUSLY 4.DELEGATIONS – NIL 5.NEW AND UNFINISHED BUSINESS 5.1. 2022 Audited Financial Statements C. Nolan, Deputy Director of Finance, provided an overview of, and answered questions on, the 2022 Financial Statements, including the Statement of Financial Position, Accumulated Surplus, Consolidated Statement of Operations, Consolidated Statement of Change in Net Financial Assets, Consolidated Statement of Cash Flow, and the Consolidated Report of Segmented Revenue & Expenses. 3.0 Audit & Finance Committee Meeting Minutes April 25, 2023 Page 2 of 2 5.2. 2022 Auditor’s Update on the 2022 Financial Statements Brian Szabo, CPA, CA, presented to the committee on their role and the status of their audit of the 2022 Financial Statements and answered questions. 6. QUESTION PERIOD – NIL 7. NOTICE OF CLOSED MEETING – NIL 8. ADJOURNMENT – 10:08 am Councillor Korleen Carreras, Chair /phw 5.1 City of Maple Ridge TO: FROM: His Worship Mayor Dan Ruimy and Members of Council Chief Administrative Officer SUBJECT: Permissive Tax Exemption Policy Review EXECUTIVE SUMMARY: MEETING DATE: FILE NO: July 4, 2023 05-1880-20 MEETING: Audit & Finance Committee Property taxes are the City of Maple Ridge's (City) pr)mary so~rce of revenue for funding services. Each year Council adopts business planning guidelines that drive changes in taxation revenue from year-to- year. Not all properties in Maple Ridge are subject to property taxes and the following report describes the two major types of exemptions that are available under legislation, statutory and permissive. The focus of this report is on the permissive exemptions where Council has the ability to set parameters to determine how the relevant legislation will be applied in our community. The Community Charter provides for a general exemption from property taxes if certain criteria are met. These are referred to as statutory exemptions and Council does not have any legislative powers or authority over these exemptions as BC Assessment determines which properties qualifyfor statutory exemptions. The Community Charter provides Council with the authority to exempt certain other properties from municipal taxation if specified criteria are met, referred to as permissive exemptions. Councils adopt policies that define how these exemptions are applied in their communities. In Maple Ridge, Council has chosen to adopt a series of policies intended to prevent the downloading of services that are the responsibility of senior governments and to ensure that local residents are not subsidizing residents from other municipalities. Property tax relief is also granted to churches and organizations providing services and programs that are an extension of municipal services and fall under the responsibility of local government. It has been the City's practice to review the Permissive Tax Exemption Policy Framework (Policy Framework) with the Audit & Finance Committee ir:i the first-full year of a new Council's mandate to confirm the policy direction or identify changes for \onsideration. The most recent policy review took place in June 2019 and no changes were contemplated as a result of that review. In order to provide a permissive tax exemption for the next, and subsequent, calendar years, Council must adopt a bylaw on or before October 31 of the current year. A proposed Bylaw for municipal permissive tax emptions covering the years 2024 through 2027, will be brought forward for Council consideration in advance of this date. This report is intended to provide a general overview and history of permissive tax exemptions in Maple Ridge. RECOMMENDATION: THAT the Audit & Finance Committee confirm the Permissive Tax Exemption Policy Framework as outlined in Policy Numbers 5.16, 5.17, 5.18, 5.19, 5.20, 5.21, 5.22 and 5.23. 3381959 1 of 4 DISCUSSION: The Community Charter provides for a general exemption from property taxes if certain criteria are met. These are referred to as statutory exemptions, and Council does not have any legislative powers or authority over these exemptions as BC Assessment determines which properties qualify for statutory exemptions. Included under this are properties such as schools, public hospitals, buildings set apart for public worship and provincial and municipally held public buildings and land. The Community Charter provides Council with the authority to exempt certain other properties from municipal taxation if specified criteria are met. These exemptions are referred to as permissive tax exemptions and are the subject of this report. Permissive exemptions from property taxation may be granted to land or improvements under section 224(2) of the Community Charter with the provisions summarized as follows: (a) Properties owned or held by charitable, philanthropic or other not for profit corporations that council considers are used for a purpose that is directly related to the purposes of the corporation (b) Properties owned or held by a municipality, regional district or other local authority that council considers are used for a purpose of the local authority, (c) Properties that council considers would otherwise qualify for Statutory Exemption were it not for a secondary use (d) Properties owned by a public or local authority and are used by a corporation or organization, if that organization would receive exemption if they were owners of the property, (e) Properties owned by persons providing a municipal service under a partnering agreement (f) Properties in relation to a building used for public worship receiving a statutory exemption (g) Properties occupied by a religious organization, as a tenant or licensee (h) Properties in relation to buildings used for seniors' homes or hospitals receiving a statutory exemption (h.1) Properties in relation to land or improvements for independent schools receiving a statutory exemption. (i) Land or improvements owned or held by an athletic or service club or association and used as a public park or recreation ground or for public athletic or recreational purposes U) Property being operated as a private hospital Recognizing that exempting properties from taxation shifts the tax burden to the remaining properties in the municipality, Council adopts policies that define how these exemptions will be applied in their communities. In Maple Ridge, Council has chosen to adopt a series of policies intended to prevent the downloading of services that are the responsibility of senior governments and to ensure local residents are not subsidizing residents from other municipalities. The policies also establish that where a permissive exemption is granted all residents of Maple Ridge have access to the service provided and make certain the property tax exemption does not provide an unfair competitive advantage. The services provided by the organization are to be an extension of municipal services and programs, and fall under the responsibility of local government. Choosing to provide a permissive tax exemption where the service provided is the responsibility of another level of government would be funding programs not intended to be paid for by property taxes. In 2001, the current Policy Framework was adopted as a series of policies, attached as Appendix "A", following the enactment of the Community Charter, which required the policies in place prior to 2001 be updated to refer to it instead of previous legislation. The framework was amended in 2016, following a change to the Community Charter, to confirm that permissive exemptions would no longer 3381959 2 of 4 be provided to private schools offering a curriculum equivalent to that in public schools in Maple Ridge as these schools were now provided a statutory exemption. The following provides a summary of each policy: Policy: 5.16 Homes for the Care of Children and the Relief of the Aged, the Poor, the Disabled and the Infirm • Confirms that permissive tax exemptions will not be provided to these organizations. Policy 5.17 Private Hospitals and Daycares • Confirms that exemptions will not be granted to these organizations. Policy 5.18 Community Halls • Exemptions are provided to a limited number of community halls: o Ruskin Community Hall o Ridge Meadows Seniors Society o Fraternal Order of Eagles Policy 5.19 Municipal Recreation Services • Exemptions are granted to organizations providing services that are an extension of municipal services and are the responsibility of local government: o Maple Ridge Golf Course o Cam Neely Arena (90%) o Golden Ears Winter Club (95%) Policy 5.20 Churches • In addition to the statutory exemption, church halls and land up to 5 acres will be granted a permissive tax exemption. Policy 5.21 Private Schools • Confirms that permissive tax exemptions will not be provided. Policy 5.22 Youth Recreation Groups • A permissive exemption can be granted to not for profit societies providing fitness or recreational activities for youth: o Girl Guides of Canada o Scout Properties Policy 5.23 Heritage Sites • Eligible heritage properties can be granted an exemption: o Haney House o Haney Brick Yard Office and Haney Brick Yard House o St. Andrews United Church o Old Japanese School House o Masonic Lodge Since the policies were adopted in 2001, each Council has reviewed them during their term in office. Reviews were completed in 2004, 2008, 2012, 2015 & 2019, and to date, the Policy Framework has been confirmed at each review. All new applications for permissive tax exemptions are evaluated against the Policy Framework and only recommended when they fit within that framework. In recent years the following organizations have applied for, and been denied, a permissive exemption as the services they provide, while highly valued in the community, are not an extension of municipal services, nor are they the responsibility of local government: • Friends in Need Food Bank 3381959 3 of 4 • Hope for Freedom Society • One Way Club Society • Army, Navy & Air Force Veterans The Friends in Need Food Bank was denied a permissive exemption as the services it provides should be funded through social assistance or healthcare branches of the provincial government. Both the Hope for Freedom Society and the One Way Club Society offer addiction recovery services, the provision of which are not within the responsibility of local government. The Army, Navy & Air Force Veterans provide a meeting place for veterans, first responders and local seniors, services which are not an extension of municipal services. Additionally, there are other organizations in the community that provide addiction recovery services and choosing to provide an exemption to one could invite other applications resulting in an increase to the tax burden against the remaining eligible properties . In order to provide a permissive tax exemption for the next calendar year, Council must adopt a bylaw on or before October 31 of the current year. This bylaw applies specifically to the municipal tax levies on the property tax notice. Both the School Act and the Hospital District Act provide for exemptions from other taxing authorities for properties included in the bylaw. Prior to adoption, the properties being proposed for exemption, with the exception of churches, must be publicly posted and included in a newspaper. The notice will include a description of each property and the estimated tax exemption for the year of the bylaw and the following two years. The City also includes a listing of all properties receiving permissive tax exemptions in the Annual Report. In 2023, permissive tax exemptions estimated at approximately $860,000 were granted in Bylaw No. 7568-2019, as amended, and attached as Appendix "B". This amount covers exemptions provided under the City's Policy Framework as well as permissive exemptions granted under lease or fee for service agreements. CONCLUSION: The Policy Framework surrounding permissive tax exemptions in Maple Ridge is designed with a number of outcomes in mind. The intent is to prevent the downloading of services that are the responsibility of other levels of government and to ensure that local residents are not subsidizing residents from other municipalities. Property tax relief is granted to churches and organizations providing services and programs that are an extension of municipal services and fall under the responsibility of local government. w[L Prepared by: Catherine Nolan, CPA, CGA Deputy ir ctor of Finance Concurrence: inistrative Attachments: (A) City of Maple Ridge Tax Exemption Policies5.16 to 5.23 (B) City of Maple Ridge Bylaw No. 7568-2019 3381959 4 of 4 POLICY MANUAL mapleridge.ca Title: Tax Exemption -Homes for the Care of Children and the Relief of the Aged, the Poor, the Disabled and the Infirm Authority: Legislative ~ Operational D Policy No.: 5.16 Supersedes: Effective Date: 11-Sept-2001 Approval: Council ~ CMT □ General Manager D Review Date: 18-June-2019 Policy Statement: No exemptions are permitted under this Section as these services are the responsibility of senior government. Purpose: Section 224(2)(a) of the Community Charter allows for permissive tax exemptions for properties that (i) are owned or held by a charitable, philanthropic or other not for profit corporation, and (ii) the Council considers are used for a purpose that is directly related to the purposes of the corporation. •• 1 There are Provincial and Federal Programs in place to assist these organizations and the services that they provide are the responsibility of these senior governments. The purpose of this policy is to confirm that permissive tax exemptions will not be granted to these organizations. Doc#3382430 Page 1 of 1 Policy I mapleridge.ca Title: Tax Exemption -Private Hospitals and Daycares Authority: Legislative [XI Operational D POLICY MANUAL Policy No.: 5.17 Supersedes: Effective Date: 11-Sept-2001 Approval: Council [XI CMT □ General Manager D Review Date: 18-June-2019 Policy Statement: No exemptions are permitted under this Section as these services are the responsibility of senior government. Purpose: Section 224(2)U) of the Community Charter allows for permissive tax exemptions for properties that (i) are owned or held by a person or organization and operated as a private hospital licensed under the Hospital Act, or an institution licensed under the Community Care Facility Act. While some day-care facilities are licensed under the Community Care Facility Act, it takes a broad interpretation of "institution" to make these facilities eligible for tax exemption. This appears to be contrary to the Community Charter. The purpose of this policy is to confirm that permissive tax exemptions will not be provided to services that are the responsibility of other governments. Doc#3382435 Page 1 of 1 Policy mapleridge.ca Title: Tax Exemption -Community Halls Authority: Legislative ~ Operational D POLICY MANUAL Policy No.: 5.18 Supersedes: Effective Date: 11-Sept-2001 Approval: Council~ CMT D General Manager D Review Date: 18-June-2019 Policy Statement: The land and buildings necessary to the operation of a community hall that provides its community with non-restricted social and recreation activity will be exempt from taxation under section 197(1)(a) of the Community Charter [municipal property taxes]. Purpose: To establish the level of permissive tax exemption that is provided to community halls. Section 224(2)(i) of the Community Charter provides for a permissive tax exemption for properties owned or held by an athletic or service club or association and used as a public park' or recreation ground or for public athletic or recreational purposes. Definitions:· The athletic or service association must be a non-profit registered society that is in good standing with the Registrar. It must be apolitical and non-restrictive in its membership, executive, and event participation. A community hall offers identity to its recognized area and provides the community with social and recreation activity. Tax exemptions for community halls will be restricted to one hall per Maple Ridge community as follows: Hammond, West Maple Ridge, Haney, Albion, Thornhill, Whonnock, Ruskin and Yennadon. Doc#3382881 Page 1 of 1 Policy POLICY MANUAL mapleridge.ca Title: Tax Exemption -Municipal Recreational Services Authority: Legislative [g] Operational D Policy No.: 5.19 Supersedes: Effective Date: 11-Sept-2001 Approval: Council [g] CMT □ General Manager D Review Date: 18-June-2019 Policy Statement: Council may, on a request-by-request basis, exempt from taxation under Section 197(1)(a) of the Community Charter [municipal property taxes], all land and improvements, or portion thereof, necessary to the operation of a program that provides recreation services that have been accepted as an endorsed municipal service. Purpose: Section 224(2)(i) of the Community Charter allows permissive tax exemptions for properties owned or held by an athletic or service club or association and used as a ·public part or recreation ground or for public athletic or recreational purposes. Section 224(2)(a) of the Community Charter allows permissive tax exemptions for properties that are (i) are owned or held by a charitable, philanthropic or other not for profit corporation, and (ii) the council considers are used for a purpose that is directly related to the purposes of the corporation. The purpose of this policy is to confirm that Council will, on a request-by-request basis, consider providing permissive tax exemptions to organizations that provide recreational services that are an extension of municipal services. Definitions: The land an/or improvements must be owned or held by the Municipality or by a registered non - profit society that is in good standing with the registrar. The organization must be apolitical, and be non-restrictive in its membership, executive, and program services. Exemptions will not be considered where the services duplicate those offered by a level of government or government agency. Doc#3382894 Page 1 of 1 Policy mapleridge.ca Title: Tax Exemption -Churches POLICY MANUAL Policy No.: 5.20 Supersedes: Authority: Legislative [8J Operational D Effective Date: 11-Sept-2001 Approval: Council [8J CMT □ General Manager D Review Date: 18-June-2019 Policy Statement: The church halls, not including church manses, and the surrounding land up to five acres that is situated on the same legal parcel as the building will be exempted from taxation. Purpose: General statutory exemption form taxation is provided under Section 220(1)(h) of the Community Charter for the building and land on which the building stands for properties that are registered in the same of the religious organization using the building. This policy is required to provide tax exemptions under Sections 224(2)(f) and 224(2)(g) of the Community Charter for the lan'd· or improvements used or occupied by a religious organization, as tenant or licensee, for the purpose of public worship or for the purposes of a hall that the council considers is necessary to land or improvements so used or occupied. Definitions: The properties for the purpose of public worship will be those established by the Area Assessor . Doc#3382905 Page 1 of 1 Policy POLICY MANUAL mapleridge.ca Title: Tax Exemption -Private Schools Authority: Legislative~ Operational D Policy No.: 5.21 Supersedes: Effective Date: April 26, 2016 Approval: Council ~ CMT □ General Manager D Review Date: June 18, 2019 Policy Statement: No exemptions are permitted under this Section Purpose: Section 220(1)(1) of the Community Charter provides for statutory tax exemptions for a building owned by an incorporated institution of learning that is regularly giving children instruction accepted as equivalent to that given in a public school, and that is actually occupied and wholly in use by the incorporated institution for the purpose of giving the instruction, together with (i) The land on which the building stands, and • • • (ii) An area of the land surrounding the land referred to in subparagraph (i) or improvements on the area of land, or both, that are owned by the incorporated institution and that are reasonably necessary for the purposes of the incorporated institution, including, without limiting this, the following areas of land and improvements: (A) Playing fields, athletic grounds and facilities, playgrounds and improvements related to any of them; (B) Storage, maintenance and administrative facilities; (C) Dormitories for students; (D) Parking lots, walkways and roads Any lands determined by BC Assessment to be in excess of those needed for the delivery of the curriculum will be subject to property taxation. Doc#3382916 Page 1 of 1 Policy POLICY MANUAL mapleridge.ca Title: Tax Exemption -Youth Recreation Groups Authority: Legislative ~ Operational D Approval: Council ~ CMT □ General Manager D Policy Statement: Policy No.: 5.22 Supersedes: Effective Date: September 11, 2001 Review Date: June 18, 2019 Land up to a maximum of 5 acres and buildings that are owned or held by a registered non -profit youth or recreation group, and used principally for fitness development and recreational activities of the public, will be exempt from taxation under Section 197(1)(a) of the Community Charter [municipal property taxes]. Purpose: Section 224(2)(i) of the Community Charter allows for permissive tax exemptions for properties owned or held by an athletic or service club or association and used as a public part or recreation ground or for public athletic or recreational purposes. The purpose of this policy is to establish the level of permissive tax exemption that will apply to youth and recreation groups. Definitions: The youth or recreation group must be a non -profit registered society that is in good standing with the Registrar. It must be apolitical, and non -restrictive in its membership, executive and event participation. The group must be dedicated to the fitness development and/or recreational needs of a reasonable section of the community. Exemptions will not be considered where comparable facilities or activities are offered by the Municipality or the private sector. Doc#3383045 Page 1 of 1 Policy POLICY MANUAL mapleridge.ca Title: Tax Exemption -Heritage Sites Authority: Legislative fZI Operational O Approval: Council fZI CMT O General Manager O Policy Statement: Policy No.: 5.23 Supersedes: Effective Date: September 11, 2001 Review Date: June 18, 2019 Council will consider requests for exemption from taxation under Section 197(1)(a) of the Community Charter [municipal property taxes] for: 1 . Eligible heritage property under Section 225(2)(b) of the Community Charter; or 2. A historical building which has previously received an exemption from taxation under Section 400(2)(a), now repealed, of the Municipal Act. Purpose: The Community Charter provides authority to municipalities to undertake certain activities relating to heritage conservation. Section 225(2)(b) of the Community Charter allows for permissive tax exemption for eligible heritage properties. The purpose of this policy is to confirm that request for tax exemption for eligible heritage properties will be considered by Council. Properties which are not eligible heritage properties but which were granted a tax exemption under section 400(2)(a), now repealed, continue to be eligible for permissive tax exemption under the transition provisions of the Heritage Conservation Statutes Amendment Act, 1994. Definitions: Eligible heritage properties include protected heritage properties under Section 611 of the Local Government Act, properties subject to a heritage revitalization agreement under Section 610 of the Local Government Act or properties subject to a covenant under Section 219 of the Land Title Act that relates to the conservation of heritage property. Doc#3382939 Page 1 of 1 Policy THE FOLLOWING DOCUMENT HAS BEEN REPRODUCED FOR CONVENIENCE ONLY and is a consolidation of the following: 1. Maple Ridge Property Tax Exemption Bylaw No. 7568-2019. 2. Maple Ridge Property Tax Exemption Amending Bylaw No. 7670-2020. 3. Maple Ridge Property Tax Exemption Amending Bylaw No. 7869-2022. Individual copies of any of the above bylaws can be obtained by contacting the Clerk's Department. City of Maple Ridge Bylaw No. 7568-2019 A Bylaw to exempt from property taxation, certain properties within the City of Maple Ridge WHEREAS, pursuant to provisions of the Community Charter, S.B.C., 2003, Chapter 26, a Municipal Council may exempt certain land and improvements from property taxation, where, in the opinion of the Municipal Council, the use of the land and improvements qualifies for an exemption; AND WHEREAS, the Municipal Council deems it expedient to exempt certain land and improvements for the years 2020-2023; NOW THEREFORE, the Municipal Council of the City of Maple Ridge in open meeting assembled, enacts as follows; 1. The properties described on "Schedule A" through "Schedule H"; which are attached to this bylaw, shall be exempt from property taxation for the years 2020-2023 provided that the lands, buildings, or portions of building thereon, continue to be used for the purpose for which tax exemption has been granted. 2. This Bylaw shall be cited for all purposes as Maple Ridge Property Tax Exemption Bylaw No. 7568- 2019. 3. The exemptions granted by this bylaw are without prejudice to any claim for entitlement to exemption based on any other provisions of the Community Charter or any other legislation. READ a first time the 1st day of October, 2019. READ a second time the 1st day of October, 2019. READ a third time the 1st day of October, 2019. ADOPTED the 15th day of October, 2019. PRESIDING MEMBER CORPORATE OFFICER City of Maple Ridge Bylaw No. 7568-2019 A Bylaw to exempt from property taxation, certain properties within the City of Maple Ridge "SCHEDULE A" That in accordance with Section 224(2)(i) of the Community Charter, the following lands and improvements owned or held by an athletic or service club or association and used principally as a public park or recreation ground or for public athletic or recreational purposes be exempt from property taxation: Owner/Lessee Name Civic Address Folio Number Legal Description Primary PID Lot 1, Sec 17, TWP 15, NWD, Scout Properties (B.C./ Yukon) Ltd. 27660 Dewdney Trunk Road 05299-0100-0 PL NWP82116 014-87 4-229 Lot 1, Sec 7, TWP 15, NWD, Girl Guides of Canada 26521 Ferguson Avenue 05322-0300-1 PL NWP70434 002-388-189 Portion of Land and Improvements owned by the City of Maple Ridge/Leased to: Ridge Meadows Lot 2, Sec 20, TWP 12, NWD, Seniors Society 12148 224 Street 52700-0001-0 PL LMS4011 024-607-525 Lot 3, Sec 28, TWP 12, NWD, Fraternal Order of Eagles 23461132 Avenue 73878-0300-6 PL NWP13167 009-781-455 Lot 1, Sec 4, TWP 15, NWD, Ruskin Community Hall 28395 96 Avenue 94856-0000-8 PL NWP4048 011-015-322 City of Maple Ridge Bylaw No. 7568-2019 A Bylaw to exempt from property taxation, certain properties within the City of Maple Ridge "SCHEDULE B" That in accordance with Section 224(2)(i) of the Community Charter, the following lands and improvements owned or held by an athletic or service club or association and used principally as a public park or recreation ground or for public athletic or recreational purposes be exempt from municipal property taxation; and in accordance with Section 225(2)(e) of the Community Charter, the following land and improvements that are eligible golf course property, being land maintained as a golf course be exempt from property taxation: Owner/Lessee Name Civic Address Folio Number Legal Description Primary PID City of Maple Ridge/Leased to: Region View Recreation Services Lot 1, DL 277, NWD, PL (Public Golf Course) 20818 Golf Lane 21238-1001-1 NWP84260 015-94 7-424 City of Maple Ridge Bylaw No. 7568-2019 A Bylaw to exempt from property taxation, certain properties within the City of Maple Ridge "SCHEDULE C" That in accordance with Section 224(2)(a) of the Community Charter, the following land and improvements that are owned or held by a charitable, philanthropic, or other not for profit corporation, and the council considers are used for the same purpose be exempt from property taxation: Owner/Lessee Name Civic Address Folio Number Legal Description Primary PID City of Maple Ridge/Occupied By: Maple Ridge Search and Rescue Society 23598 Jim Robson Way 84120-0005-0 DL 275, NWD, PL LMP45108 N/A City of Maple Ridge Bylaw No. 7568-2019 A Bylaw to exempt from property taxation, certain properties within the City of Maple Ridge "SCHEDULE D" That in accordance with Section 224(2)(d) of the Community Charter, the interest in land and improvements owned by a public or local authority that are being used by a corporation or organization that would be eligible for exemption if the land and improvements were owned by that corporation or organization, shall be exempt from property taxation: owner/Lessee Name Civic Address Folio Number Legal Description Primary PID City of Maple Ridge/Leased to: Maple Ridge Pitt Meadows Arts Council 11944 Haney Place 31711-1000-0 N/A N/A Greater Vancouver Sewage & Solid Lot B, DL 275, NWD, PL Waste/Leased to: Ridge Meadows NWP7587 Recycling Society 10092 236 Street 84112-0001-0 011-259-281 City of Maple Ridge/ Leased to: Lot 2, Sec 3, TWP 12, NWD, Katie's Place 10255 Jackson Road 84292-0100-0 PL NWP38409 N/A City of Maple Ridge/Leased to: BC Lot A, Sec 3, TWP 12, NWD, Society for the Prevention of Cruelty PL BCP43808 to Animals 10235 Jackson Road 84292-0257-0 028-160-100 7670-2020 7869-2022 City of Maple Ridge Bylaw No. 7568-2019 A Bylaw to exempt from property taxation, certain properties within the City of Maple Ridge "SCHEDULE E" That in accordance with Section 224(2)(f) of the Community Charter, in relation to property that is exempt under section 220(1)(h) [buildings for public worship], the following land and improvements, that have been deemed as necessary to the building set apart for public worship and not including any portion of the property used for a commercial purpose, be exempt from property taxation: Owner/Lessee Name Civic Address Folio Number Legal Description Primary PIO Lot 1, Sec 8, TWP 15, NWD, Wildwood Fellowship Church 10810 272 Street 05071-0100-5 PL NWP15658 010-090-797 Lot 695, DL 278, NWD, PL Ridge Meadows Open Door Church 11391 Dartford St 10622-0100-0 NWP114 011-525-606 B.C. Conference of Mennonite Lot 1, DL 222, NWD, PL Brethren Churches Inc. 20450 Dewdney Trunk Road 20 7 62-0305-0 LMP40767 024-380-253 Christian & Missionary Alliance Lot 1, DL 241, NWD, PL (Canadian Pacific District) 20399 Dewdney Trunk Road 20804-0401-1 NWP83237 015-254-399 St. Pauls Evangelical Lutheran Church of Haney B.C. 12145 Laity Street 20861-0100-4 DL242, NWD 012-842-320 Lot 331, DL 248, NWD, PL St. John the Divine Anglican Church 21299 River Road 20920-0100-1 NWP65523 003-630-421 Roman Catholic Archbishop of Lot 1, DL 263, NWD, PL Vancouver Church 20285 Dewdney Trunk Road 21140-0400-1 NWP75684 008-434-271 Maple Ridge Christian Reformed Lot 33, DL 263, NWD, PL Church 20245 Dewdney Trunk Road 21142-3300-3 NWP71910 004-613-333 Lot 1, DL 276, NWD, PL Burnett Fellowship Baptist Church 20639 123 Avenue 21190-0001-0 LMP42697 024-551-7 41 Church of Jesus Christ of Latter Day Lot 369, DL 277, NWD, PL Saints in Canada 117 50 207 Street 21255-0201-X NWP54899 005-333-504 Trustees of the Kanaka Creek Lot 22, DL 280, NWD, PL Congregation of Jehovah's Witnesses 11770 West Street 21335-2200-2 NWP67774 000-556-505 Lot B, DL 245, NWD, PL Church of the Nazarene 21467 Dewdney Trunk Road 41990-0000-8 NWP9007 011-402-911 Lot 3, DL 247, NWD, PL High Way Church 21746 Lougheed Highway 42162-0000-X NWP6664 011-228-393 Congregation of the Haney Lot 324, DL 24 7, NWD, PL Presbyterian Church 11858 216 Street 42176-0000-8 NWP64655 003-4 71-951 Trustees of the Congregation of the Lot C, DL 396, NWD, PL Golden Ears United Church 22165 Dewdney Trunk Road 42249-0100-6 NWP14898 006-588-697 Lot A, DL 397, NWD, PL Maple Ridge Baptist Church 22155 Lougheed Highway 42331-0100-1 NWP67821 000-580-376 Governing Council of the Salvation Lot A, DL 397, NWD, PL Army in Canada 22188 Lougheed Highway 42345-0200-0 NWP68759 000-933-295 Roman Catholic Archbishop of Lot 24, Sec 20, TWP 12, Vancouver 22561121 Avenue 52788-0000-8 NWD, PL NWP1161 012-020-389 7670-2020 7869-2022 Schedule "E" cont'd. City of Maple Ridge Bylaw No. 7568-2019 A Bylaw to exempt from property taxation, certain properties within the City of Maple Ridge Lot 5, Sec 14, TWP 12, NWD, Webster's Whonnock United Church 25102 Dewdney Trunk Road 63029-0100-5 PL NWP3275 010-904-140 Lot A, Sec 16, TWP 12, NWD, Parish of St. George (Maple Ridge) 23500 Dewdney Trunk Road 63157-2001-1 PL NWP83835 015-406-661 Lot 22, Sec 16, TWP 12, Christian Life Assembly 117 56 232 Street 63163-2300-2 NWD, PL NWP75454 008-243-123 Lord Bishop of New Westminster (St. Lot 1, DL 433, NWD, PL John Evangelical) 27123 River Road 94720-0001-0 LMP28492 023-434-716 Lot B, Sec 5, TWP 15, NWD, Apostles of Infinite Love, Canada 27289 96 Avenue 94906-0000-3 PL NWP11439 008-311-048 Jamia Riyadhul Jannah British Columbia Foundation 27079 River Road 94 717-0000-0 DL433, NWD 012-877-301 7670-2020 City of Maple Ridge Bylaw No. 7568-2019 A Bylaw to exempt from property taxation, certain properties within the City of Maple Ridge "SCHEDULE F" That in accordance with Section 224(2)(g) of the Community Charter, land or improvements used or occupied by a religious organization, as tenant or licensee, for the purpose of public worship or for the purposes of a hall that the council considers necessary to land or improvements so used or occupied, be exempt from property taxation: Owner/Lessee Name Civic Address Folio Number Legal Description Primary PID 4 7 4223 BC Ltd/Leased to: Lot 381, DL 249, NWD, PL Northridge Foursquare Church 11601 Laity Street 21034-0000-8 NWP58286 005-703-808 City of Maple Ridge Bylaw No. 7568-2019 A Bylaw to exempt from property taxation, certain properties within the City of Maple Ridge MSCHEDULE G" That in accordance with Section 225(2)(b) of the Community Charter the following heritage lands and improvements shall be exempt from property taxation: Owner/Lessee Name Civic Address Folio Number Legal Description Primary PID City of Maple Ridge/ Leased to: Maple Ridge Historical Society Lot 4, DL 398, NWD, PL (St.Andrew's United Church) 22279 116 Avenue 31428-0000-1 NWP59018 005-724-431 Lot 3, DL 398, NWD, PL Prince David Temple Society 22272 116 Avenue 31429-0100-0 NWP59018 001-421-336 City of Maple Ridge/Leased to: Fraser Information Society (Old Lot 28, BLK 5, DL 398, NWD, Japanese School House) 11739 223 Street 31492-0000-3 PL NWP155 011-539-348 City of Maple Ridge/Leased to: Maple Ridge Historical Society Lot 2, BLK 2, DL 398, NWD, (Haney House) 11612 224 Street 31790-0000-4 PL NWP155 011-538-449 City of Maple Ridge/Leased to: Maple Ridge Historical Society (Haney Brick Yard Office and Haney Lot 2, DL 401, NWD, PL Brick Yard House) 22520 116 Avenue 31962-0502-3 NWP79665 012-350-371 City of Maple Ridge Bylaw No. 7568-2019 A Bylaw to exempt from property taxation, certain properties within the City of Maple Ridge ~SCHEDULE H" That in accordance with Section 224(2)(c) of the Community Charter, "land or improvements that the council considers would otherwise qualify for exemption under section 220 [general statutory exemptions] were it not for a secondary use", the council may, by the adoption of a bylaw, determine the proportions of the land and improvements that are to be exempt and taxable; and Section 224(2)(i) of the Community Charter, land or improvements owned or held by an athletic or service club or association and used principally as a public park or recreation ground or for public athletic or recreational purposes, shall be exempt from property taxation as by the proportions set in accordance with Section 224(2)(c) of the Community Charter: Owner/Lessee Name Civic Address Folio Number Legal Description Primary PID Land and Improvements owned by the City of Maple Ridge, herein called Cam Neely Arena, shall be DL 275, 405, 406 & 408, exempted from 90% of taxation 23588 Jim Robson Way 84120-0002-0 NWD, PL LMP45108 024-715-883 Land and Improvements owned by the City of Maple Ridge, herein called the Golden Ears Winter Club, shall be exempted from 95% of DL 275, 405, 406 & 408, taxation 23588 Jim Robson Way 84120-0004-0 NWD, PL LMP45108 N/A Included within each of the exemptions 9(a) and 9(b) is a proportionate share (based on the square footage areas of Cam Neely Arena, The Golden Ears Winter Club, and the remainder of the building) of all entrances, lobbies, change rooms, stairs, elevators, hallways, foyers and other common use areas of the lands and improvements. 5.2 TO: FROM: His Worship Mayor Dan Ruimy and Members of Council Chief Administrative Officer City of Maple Ridge MEETING DATE: FILE NO: July 4, 2023 05-1880-20 MEETING: Audit & Finance Committee SUBJECT: Financial Policy Review -Update EXECUTIVE SUMMARY: During the previous Council's term, staff were asked to review the City of Maple Ridge's (City) financial policies, bylaws and levies and bring forward recornmended updates for Council's consideration. The focus of the review was to ensure that City policies· reflect the current needs of the organization and provide an appropriate degree of flexibility and guidance to deliver on the City's future needs. This work was started in late 2022, but progress was limited as other statutory obligations took precedence. The purpose of this report is to update the Audit & Finance Committee on the proposed scope of work and confirm the intended direction. Previous reports to the Audit & Finance Committee on this subject are attached for reference. RECOMMENDATION: That the Audit & Finance Committee confirm the scope of work and direction of the financial policy review. DISCUSSION: a) Background Context: In June of 2022, staff provided an overview report to the Audit & Finance Committee with a recommendation to focus any review and update to three main policy frameworks that guide financial processes and the allocation of funds in the City: • Policy 5.52 -Financial Sustainability Plan • Policy 5.55 -Gaming Revenue • Policy 5.11 -City Lands Disposition of Proceeds The report and policies are attached for your reference and review. The Community Amenity Policy, also a key policy from a financial planning perspective, was deliberately excluded from the scope of this project as it was under review at the time and is largely informed by work in the Planning Department. With recent organizational changes, staff recommend the scope of review and update be expanded to include Policy 5.35 "Expense Policy for Council, Employees and Other Authorized Persons" to ensure the approval structure reflects the new corporate structure. 3419124 Page 1 of 3 Additionally, staff further recommend that updating Policy 5.44 "Investment of Municipal Funds" be included in this review to allow the City to take advantage of new investment opportunities that are available through the Municipal Finance Authority. The policies that are recommended for inclusion were developed a number of years ago when the needs of the City were different. Since their development, the City's population has increased by over 20,000 people and is expected to grow significantly in the next number of years; inflationary pressures have changed as well as the challenges the City needs to address. There is a need to update the existing policy framework to provide for an appropriate degree of flexibility while continuing to ensure we have sound financial management practices in place. The following provides some high-level information on intended changes to the policy framework: • Policy 5.52 -Financial Sustainability Plan o The policy framework was developed in 2004 and provided a comprehensive series of policies that reflected corporate needs of the time. Now, nearly 20 years later an update is needed. Consideration will be given to whether or not there is some benefit to pulling some policy statements out of this overarching Financial Sustainability Plan and creating dedicated policies to address the subject matter. For example, a dedicated policy on how the City will employ debt financing could be considered. • Policy 5.55 -Gaming Revenue o The policy was drafted in advance of a gaming facility opening in Maple Ridge and was not updated when the current Chances facility opened in October 2013. An update to the policy will provide an opportunity to incorporate changes in practice, such a1s the direction from Council to direct some of the monies from this source to infrastructure renewal, while respecting the higher degree of risk associated with this revenue source, as seen during COVID-19 related closures. • Policy 5.11 -City Lands Disposition of Proceeds o The policy direction is still aligned with legislative direction but updates are needed to include current legislation. • Policy 5.35 -Expense Policy for Council, Employees & Other o Recommend developing separate policies for Council and staff and updating approval procedures to align with the new corporate structure. • Policy 5.44 -Investment of Municipal Funds o An update is required to allow the City to purchase new investment instruments offered through the Municipal Finance Authority. b) Desired Outcome: At this time, staff would like to ensure the Audit & Finance Committee is informed of the project, has an opportunity to provide feedback and confirm the direction of contemplated work. Staff will take that feedback and direction and bring back an update for review and discussion in late Q3 or early Q4. c) Business Plan/Financial Implications Much of policy framework under discussion is used as a guide to develop departmental work plans. Changes to the framework would flow through to the business planning process as well. 3419124 Page 2 of 3 CONCLUSION: This report provides an update on the review of financial policies that is currently underway. Staff is looking for confirmation of the scope of work and direction of the project to bring forward an update in either late Q3 or early Q4. Prepared by: Catherine Nolan, CPA, CGA Deputy Director of Finance Approved by: Concurrence: Seo artman Chief Administrative Officer Attachments: ( (A) Report to the Audit & Finance Committee dated June 13, 2022 (B) Appendix B: Policy 5.35 -Expense Policy for Council , Employees & Other (C) Appendix C: Policy 5.44 -Investment of Municipal Funds 3419124 Page 3 of 3 TO: City of Maple Ridge ~,- mapleridge.ca His Worship Mayor Michael Morden and Members of Council MEETING DATE: 13-June-2022 FILE NO: Appendix.A FROM: Chief Administrative Officer MEETING: Audit & Finance SUBJECT: Overview of Financial Policies EXECUTIVE SUMMARY: At the April 26 Council meeting the following resolution was passed: That staff be directed to review the structure of the City's financial policies, Bylaws and levies and provide any recommendations back to Council for Consideration as necessary to meet the City's anticipated future needs . The focus of this report is on the policies the City has in place that guide the financial planning process , u • or the allocation of funds. A complete listing of policies that guide financial processes is attached as Appendix "A" to this report. Charges, such as Development Costs Charges, are set out in bylaws. Development Cost Charges are currently under review and will be brought to the committee for discussion at the June 27 Audit & Finance Committee meeting. Financial models to support the implementation of Master Plans will be discussed at the July 4 Audit & Finance Committee meeting. RECOMMENDATION: For information only DISCUSSION: a) Background Context: Financial processes In the City of Maple Ridge are guided by policies intended to support fiscally prudent practices within the City. In some instances, long standing practices augment this policy framework. This report is intended to provide an overview of those policies and practices that guide the financial planning process or the allocation of funds as follows: • Policy 5.52 -Financial Sustainability Plan • Policy 5.55 -Gaming Revenue • Policy 5.11 -City Lands Disposition of Proceeds The Community Amenity Policy is also a key policy from a financial planning perspective and as It Is currently being reviewed by Council, It has been excluded from this report to avoid duplication of effort. 3075333 Page 1 of 3 Policy 5.52, the Financial Sustainability Plan was adopted by Council in October of 2004 and is comprised of a series of policy statements. Its stated purpose is to provide a proactive strategy for the continued provision of high-quality services, position the City to meet its financial obligations and to take advantage of opportunities that may arise. The plan is attached as Appendix 8 to the report, and covers the following areas: 1. Growth in the tax base 2. Service demands created by a growing community 3. Tax increase 4. New services and major enhancements to existing services 5. Efficiencies, demand management and service level reduction 6. Alternative revenues and external funding 7. Infrastructure maintenance and replacement 8. Debt management 9. Fees and charges 10. Accumulated surplus 11. Reserve funds and reserve accounts 12. Capital projects 13. Carry forward projects This policy framework has been in place for 18 years and was adopted when the community's population was approximately 70,000. Now, we are closing in on a population of 100,000 and the challenges the community is facing have changed. A review of the framework and the underlying philosophy is appropriate given these factors. Policy 5.55, Gaming Revenue was adopted by Council in 2011 following the City entering into a Host Financial Assistance Agreement with the Province. Under this agreement tHe City receives 10% of the net proceeds from the local Chances facility. The policy is attached as Appendix C to this report and the following summarizes the content: 1. There are no guarantees as to the amount the City can expect to receive under this agreement, therefore any monies received should be used to fund non-recurring items. 2. The base level of funding expected was set at $500,000 when the policy was adopted and this level of funding was allocated to the following areas: a. Minor capital improvements in the town centre 20% b. Minor capital improvements throughout the City 20% c. Capital improvement fund 15% d. Downtown security presence 10% e. Neighbourhood initiatives/social capital 15% f. Increased maintenance and upkeep in the town centre 10% g. Memorial Peace Park events 2% h. Emerging priorities 8% 3. Any monies received in excess of the base level of funding is transferred to the Capital Improvement Fund, The policy is augmented by a practice, started In 2015, that directs $550,000 of annual gaming revenues to the City's Infrastructure sustainability program. This practice was endorsed by the Council of the day as a way to mitigate the impact of a decision to reduce the annual tax increase dedicated to infrastructure sustainability. Policy 5.11, Municipal Lands -Disposition of Proceeds Upon Sale was adopted in 1993 and stipulates that proceeds from the sale of land will be directed to the Capital Works Reserve 3075333 Page 2 of3 (75%) and the Land Reserve (25%). From time-to-time, Council has, by resolution, stepped outside this policy framework and stipulated that the proceeds from the sale of certain lands be directed differently. Most recently, the proceeds from the sale of town centre lands were credited to the Capital Works Reserve to fund the development of artificial turf fields. Policy 5.11 was adopted prior to the introduction of the Community Charter and still references the Municipal Act. While the policy refers to legislation that is no longer in effect the policy statement itself continues to comply with current legislation. Section 188(2)(e) of the Community Charter specifies that money received from the sale of land and improvements must be placed to the credit of a reserve fund for the purposes of paying any debt in relation to the property and of acquiring land, improvements and other assets of a capital nature. b) Desired Outcome: To seek input from the Committee regarding the existing policy framework that guides the financial planning process and the allocation of funds. c) Business Plan/Financial Implications The policy framework under discussion today is used as a guide to developing departmental business plans. Changes to the framework would flow through to the business planning process as well. CONCLUSION: This report has focused on the policies that guide the financial planning process and the allocation of funds In the City. The next Audit & Finance Committee on June 27 will focus on the DCC Bylaw and the rate amendments that are currently under development. The meeting scheduled for July 4 will present options for funding models that could be used to support the implementation of the various master plans currently under development. Prepared by: Catherine Nolan, CPA, CGA Dep~ance Reviewed by: ~A, CPA, CGA ~ of Finance Approved by: Christina Crabtree Gener~7ger, Corporate Services ~Z:::s< Concurrence: Scott Hartman Chief Administrative Officer Attachments: (A) Appendix A: Policies with financial implications (B) Appendix B: Policy 5.52 Financial Sustainability Plan (C) Appendix C: Policy 5.55 Gaming Revenue - (D) Appendix D: Policy 5.11 Municipal Lands -Disposition of Proceeds upon Sale 3075333 Page 3 of 3 '•,\ Appendix A Policies with Financial Implications Policy No. Policy Title Adopted 3.07 Council Training, Conferences and Association Building 2014 5.01 Local Area Service 2009 5.02 Local Improvements to serve vacant residentially zoned land 5.05 Credit 1993 5.06 Municipal Service Charges -Adjustments of prior years charges 1993 5.07 Security Deposits 1993 5.14 Development Cost Charges -Installment Payment Due Dates 1993 5.15 Development Cost Charges -Installment Payment Security 1993 5.16 Tax Exemption -Homes for the Care of Children and the Relief of 2001 the Aged, the Poor the Disabled and the Infirm Reviewed 2019 5.17 Tax Exemption -Private Hospitals and Daycares 2001 Reviewed 2019 5.18 Tax Exemption -Community Halls 2001 Reviewed 2019 5.19 Tax Exemption -Municipal Recreational Services 2001 Reviewed 2019 5.20 Tax Exemption -Churches 2001 Reviewed 2019 5.21 Tax Exemption -Private Schools 2016 ,·. Reviewed 2019 5.22 Tax Exemption -Youth Recreation Groups 2001 Reviewed 2019 5.23 Tax Exemption -Heritage Sites 2001 , Reviewed 2019 5.24 Roads -Cost Recovery on Disposition of Surplus Portion 1994 5.25 Parkland -Acquisition through CDMR 1994 5.27 Municipal Taxes -Refund of Excess Municipal Taxes Paid in Prior 1994 Years due to an Assessment Error 5.35 Expense policy for Council, Employees and Other Authorized 2002 Persons 5.38 Utility Charges for Secondary Suites 1997 5.44 Investment of Municipal Funds 2011 5.45 Procurement 2021 5.49 Financial Support Process 2003 Under review 5.50 Public Private Partnerships 2003 5.56 Community Grants 2014 Under review 9.13 Corporate Asset Mana.e:ement 2017 Gib~ MAPLE RIDGE POLICY STATEMENT District of Maple Ridge Title: Financial Sustainability Plan Authority: Council Approval: October 26 2 2004 Policy Statement: Policy No: 5.52 Supersedes: NEW Effective Date: October 272 2004 The District's financial planning will be guided by the attached Financial Sustainability Plan policy guidelines. Purpose: A proactive strategy is required that will lay the groundwork for the continuance of high quality services and provide a legacy for future generations. It will position the Municipality.,to meet financial obligations and take advantage of opportunities that arise; it will also mean that residents can look forward to equitable and affordable taxation. The policies should be designed and structured to develop principles that guide, support and respect the direction of the community. Definitions: Appendix B Purpose: FINANCIAL SUSTAINABILITY PLAN Policy Guidelines A proactive strategy is required that will lay the groundwork for the continuance of high quality services and provide a legacy for future generations. It will position the Municipality to meet financial obligations and take advantage of opportunities that arise; it will also mean that residents can look forward to equitable and affordable taxation. The policies should be designed and structured to develop principles that guide, support and respect the direction of the community. Policy Guidelines: 1. Growth in Tax Base: Discussion: Maple Ridge is a growing community and all indications are that this will continue, Growth brings in new tax revenue which must be estimated using the best available data. Policy 1.0 Real growth will be set based on the experience of the previous planning period and the projections for the ensuing period, using information provided by the BC Assessment . , ,,Authority, the Planning Department and the Finance Departtf!.ff..{ft, 2. Service demands created by a growing community: Discussion: Growth creates demands for service, Often, the additional tax revenue is not siifficient to pay for the costs of providing the services necessary to keep with established standards. It is important that the demands created by growth be recognized and efforts be made to maintain existing standards. Policy 2.0 Business Plans should provide details of the demands for service created by growth and should include options as to how the demands can be met and existing standards maintained. 3. Tax Increase: Discussion: Rising costs of existing services must be recognized and we must resist the temptation to reduce non-renewable reserves to fimd operating expenses. Policy 3.0 Each Spring, Municipal Council will consider the tax increase required for the ensuing planning period by first covering the projected cost increase for existing services and then considering other enhancements (Please also see Policy 4.) 2 FINANCIAL SUSTAINABILITY PLAN 4. New Services and Major Enhancements to Existing Services: Discussion: The tax increase established in Policy 3 essentially allows us to provide the same level of service to the existing tax base. It is not designed to provide for new services or major enhancements to existing services. Policy 4.0 New Services or E11hanceme11ts to Existing Services will be funded by a combination of: 1. Reduction in the cost of existing services. This may include a reallocation of resources from one area to a11other. 2. Increase i11 other revenues. 3. A further increase in taxes. 5. Efficiencies, Demand Management & Service Level Reductions: Discussion: The continuous search for efficiencies is a sound business practice that we have embedded in the way we do business. Also, we do not have the resources to meet all of the demands that are made of us. Demand must be managed to make sure that expectations reflect our fiscal realities and the need to contain expenditures. Areas where service level reductions may be possible must be identified and brought fonvard for Council's consideration. Policy 5.0 Busi11ess Pla11s will identify demand ma11agement strategies a11d will include options for Service Level reductions. 6. Alternative Revenues & External Funding: Discussion: The District should strive to produce non-traditional revenues and diversify its tax base. Policy 6.0 All departments will make every effort to access external funding opportunities from other levels of government & the private sector. All departments will e11deavor to develop part11erships, strategic alliances am/ co-shared project funding to assist i11 the reductio11 of expenditures to the District. An expansion of the tax base, beyond existi11g ratios, can be used to reduce the ge11eral tax rate, increase service levels and/or provide new services. 3 FINANCIAL SUSTAINABILITY PLAN 7. Infrastructure Maintenance & Replacement: Discussion: The District has in excess of $1 billion invested in its irifi·astructure. This includes our direct investments and investments made by the development community that are turned over to the municipality to operate and maintain. As our community grows, this investment increases. We need to develop a plan to keep the infrastructure in a proper state of repair to avoid costly failures. Policy 7.0 The District will establish an i11vent01y of its infrastructure and will keep it up to date. A maintenance/replacement progrnm will be established using best practices. By 2015, this progmm must be fitlly fimded and tlte current 5 year financial plan should start to address this 011 a phased basis. The required tax increase will be beyond that set out in Policy 3. Policy7.1 Annual Opernting & Maintenance budgets will be adjusted to accommodate growth. 8. Debt Management: Discussion: The maximum amount that the District can borrow from external sources is set by the Community Charter. Every effort should be made to keep debt levels at a minimum however there may be instances where borrowing money is appropriate i.e. financing major infi·astructure projects. Borrowing in such instances allows the costs of the project to be spread out over the usejitl life of the asset. This results in the costs being paid by jitture beneficiaries and not just by current taxpayers. Policy 8.0 Projects that are to be fiuuled by extemal debt should be submitted to Council with a business case, including recommendations on how the debt will be serviced. 9. Fees and Charges: Discussion: Fees & Charges are a significant portion of our revenues. They will be revie,ved on a regular basis to avoid major changes and to provide the public with adequate notice of those changes. The review will include an analysis of our costs as well as what is charged by other municipalities. Policy 9.0 Fees & Charges will be reviewed and adjusted annually. The public will be provided no less than 3 months notice of those changes. 4 FINANCIAL SUSTAINABILITY PLAN 10. Accumulated Surplus: Discussion: Accumulated Surplus represents non-renewable accumulated savings and should not be used for operating pwposes or for normal capital pwposes. Policy 10.0 Accumulated su,p[us will be considered as a funding source for extraordinary one-time expenditures. 11. Reserve Funds and Reserve Accounts: Discussion: The District has a series of reserve fimds and reserve accounts that are established for various purposes. They can help us deal i,vith unexpected variations fiwn normal operations, which could include natural, environmental or economic events. As well, they can assist infimding opportunities that arise, Policy 11.0 Each Reserve Account and Reserve Fund will be governed by policy that outlines its pwpose, the types of expenditures permitted and the desired level of the reserve. Strategies for achieving the desired level of the reserve will be included in the Business Plans. 12. Capital Projects: Discussion: Many capital projects have fimding sources other than General Revenue. For instance, a substantial amount of infi·astructure is fimded by Development Cost Charges. Once the project is completed, its operating costs, and replacement are usually provided for by General Revenue, These ongoing costs must be clearly understood, before a capital project is approved. Policy 12.0 Each Capital Project submitted for consideration must clearly spell out the full initial cost as well as future costs, including operating & life cycle cost, and demonstrate the source of sustainable funding for such costs. 5 FINANCIAL SUSTAINABILITY PLAN 13. Carry forward Projects: Discussion: From time to time, fimding is allocated for a project (capital or operating) but the project is not completed in the year that it was budgeted for. An example of a capital project of this nature is the land required to complete Firefighters Park. An example of an operating project would be the work to be done on the Official Community Plan. Many times, the reason for the delay is due to factors beyond the control of the municipality. For instance, some projects are delayed while we try to ·secure fimding from other partners. Projects can also be delayed if we are not able to negotiate what we believe to be a fair price. In such instances, fimding is "carried forward" in recognition of the fact that project is still required and we want to be in a position to complete the transaction, once other approvals are obtained. Nonetheless, there is a need to review car,y forward projects, in light of other priorities that might have emerged. Policy 13.0 Corporate Management will complete a detailed review of CanJ' forward Projects, in light of other priorities that might have emerged. 6 Appendix C a~,;, n.,,1, o .... ~t •r fl~ight; POLICY MANUAL Policy No : 5.55 Title: Gaming Revenue Supersedes: NEW Authority: [g] Legislative □ Operational Effective Date: June 15, 2011 Approval: [g] Council □ CMT Review Date: 2012 □ General Manager Policy Statement: Gaming Revenue should be used to fund non -recurring items, and in particular, capital i mprovements that cannot be funded through development charges. These revenu~s should not be used for funding the District's ongoing operating expenses. Purpose: The Host Financial Assistance Agreement between the District of Maple Ridge and the Province of British Columbia requires the municipality to use funds received unde r the agreement for public benefit. The allocation of funds should be in alignment with Council's Vision for the community. • These funds should not be viewed as a long term source of revenue to support ongoing programs. Rather, and respecting the nature of the revenue stream, it should be used to fund non -recurring items, particular those of a capital nature. There may be instances where certain programs are more directly related to the revenue stream (e x security). Consideration can be given to funding t hese items from the Gaming Revenue stream, as long as it is understood that reductions in the revenue stream will require an offsetting reduction i n the program. Definitions: Base: The base amount for the purposes of this policy is assumed to be $500,000. Gaming revenue is variable in nature; the actual amount received in any given year could be either higher or lower than $500,000. The base will be reviewed annually based on actual experience and projections, and may be amended during the Business Planning deliberations. Capital Improvement: Improvements to, or acquisition of major and minor capital assets Council's Vision: (Vision 2025, last amended 2007) The District of Maple Ridge is among the most sustainable communities in the world. As a community committed to working toward achieving carbon neutrality, residents experience the value of a strong and vibrant local economy and the benefits of an ongoing commitment to environmental stewardship and creation of stable and special neighborhoods. Maple Ridge is a world leading example of thoughtful development and a socially cohesive community, especially as it relates to the use of leading edge "environmental technologies ," social networks and economic development. Other municipalities consistently reference the District of Maple Ridge for its innovative approaches to dealing with seemingly intractable challenges . Page 1 of 2 Policy 5.55 Minor Capital Improvements: Improvements to existing capital assets, or acquisition of minor assets such as street furniture. Gaming Revenue: The funding received from the Provincial of B.C. under the Host Financial Assistance Agreement Key Areas of Responsibility Responsibility Action to Take Annually and as part of the Business/Financial Planning Process, projections will be done on the Gaming Revenue expected for the Finance Department ensuing planning period Gaming Revenue up to $500,000 (the Base amount) will be Staff allocated as follows: a) Minor Capital Improvements in the Town Centre Area 2 20% b) Minor Capital Improvements, District-wide 2 20% c) Capital Improvement Fund 1 15% d) Downtown Security Presence 2 10% e) Neighbo~r,bood Initiatives/Social Capital 2 15% f) Increased maintenance and upkeep in Town Centre Area 2 10% g) Memorial Peace Park Events 2 2% h) Emerging Priorities 2 8% Notes: 1 Revenue exceeding the base will flow to capital Improvement Fund, a General Revenue reserve account to be used tor capital Improvements at Council's discretion. 2 Any annual funds remaining at year-end will be transferred to the Capital Improvement Fund. Develop recommended list of projects to which the gaming revenues can be allocated, in alignment with Council's Vision and Financial Sustainability Policies Review, amend and approve detailed allocation of gaming revenue as part of Business/Financial Plan Page 2 of 2 Staff Council ·-· ~:, Policy 5.55 Appendix D MAPI.E RIDGE CORPORATION OF THE DISTRICT OF MAPLE RIDGE Jncorpgrat~ 12 Sep lcmbcr1 1874 TITLE: MUNICIPAL LANDS -DISPOSITION OF PROCEEDS UPON SALE POLICY NO. 5.11 APPROVAL DATE: June 7, 1993 POLICY STATEMENT: Upon the permanent disposition of municipal lands, the proceeds may be placed to the credit of a special fund under Part 7 of the Municipal Act as follows: a) seventy-five (75) percent of the proceeds may be paid into Maple Ridge Capital Works Reserve Fund to be used for the purposes of expenditure in respect of capital projects and any. land, machinery or equipment necessary therefore, including the extension or renewal of existing capital works; and b) the remaining twenty-five (25) percent of the proceeds may be paid into Maple Ridge Land Reserve Fund to be used for the purposes of land acquisition. PURPOSE : To set a policy to direct that twenty-five percent of the proceeds from the sale of Municipal lands may be credited to a Land Re se1we Fund, to ensure that the Municipality has the resources in the .future to acquire additional lands . DEFINITIONS: Permanent disposition may include the long term leasing and exchange of Municipal lands. Money received from the proceeds of tax sale properties shall be expended in accordance with Section 380 of the Municipal Act. Date Printed: 2009-06-26 Page 1 of l Policy 5.11 Briti sh Columbia TITLE: Dee p Roo ts Grea ter Heights POLICY NO. APPROVAL DATE: POLICY STATEMENT: Appendix B DISTRICT OF MAPLE RIDGE EXPENSE POLICY FOR COUNCIL, EMPLOYEES & OTHER AUTHORIZED PERSONS 5.35 January 8, 2002 Th e attendance at conventions, seminars, workshops and meetings dealing with Municipal or Management issues is beneficial to the Municipality as they assist our members to sharpen their expertise, make valuable contacts with members of other organizations and conduct Municipal business. The Municipality supports enrolment in these outside activities, provided the financial resources are available and the anticipated costs can be justified. PURPOSE: "'F° The District recognizes that Council and employees a re an important element in the delivery of services and is committed to providing the necessary training and development to enable corporate service objectives to be met. Therefore, attendance by elected and appointed staff at appropriate meetings, conferences and seminars for the purposes of development and networking is encouraged . The establishment of a policy on expenses, payment limit, approval authority and reporting requirements provides consistency and uniformity in the administration of requests for attendance at such events. POLICY: Section 1 1.1 1.2 1.3 1.4 1.5 Section 2 2.1 Approval Authorities and Expense Claim Procedures Approval Autho r ities Authority to Approve Exceptions Departmental Approval of Expense Claims Finance Department Processing of Expense Claims Original Receipts Required Expenses Not Eligible for Reimbursement Without Written Approval of the CAO Ineligible Expenses Date Printed: March 19, 2018 Page 1 of 6 Policy 5 .35 Section 3 3.1 3.2 3.3 3.4 3.5 3.6 Transportation Means of Travel Travel by Own Vehicle Class of Air Travel Air Porter, Taxi, and Parking Combining Business Travel with Personal Travel Spousal or Partner Travel Section 4 Allowance Accommodation, Miscellaneous Reimbursable Expenses, and Per Diem 4.1 4.2 4.3 4.4 4.5 4.6 Class of Accommodation Registration Fees and Business Meals Full Day Per Diem Allowance and Overnight Travel Prorated Per Diem Allowance Expenses Covered by the Per Diem Allowance Advance Claims Section 1: Approval Authorities and Expense Claim Procedures 1.1 Approval Authorities All expenses must be in accordance with the approved Financial Plan. The Mayor approves Councillors' requests and travel claim expenses. The CAO approves the Mayor's & General Managers' requests and travel claim expenses. The General Manager of a Division approves their Department Heads' requests and travel claim expenses. The Department head approves the request and travel claim expenses of any staff member in his Department. The Director of Finance approves the CAO's travel claim expenses. General Notes: Approval for travel must be provided in writing For travel involving overnight accommodation, the traveler should submit a detailed estimate of the total costs when requesting approval for the travel. 1.2 Authority to Approve Exceptions From time to time exceptions will occur that were not provided in the Financial Plan. Exceptions for Council & staff, other than the CAO, that relate to travel and reimbursements of expenses must be authorized and approved by the CAO. Exceptions for the CAO must be authorized & approved by the Mayor. 1.3 Departmental Approval of Travel Expense Claims Expense claims must be: i.) submitted on the appropriate expense claim form with original receipts and a copy of any necessary written approvals or cost estimates Date Printed: March 19, 2018 Page 2 of 6 Policy 5.35 ii.) signed and dated by the traveller and submitted to Departmental/Divisional Manager for an approval within ten calendar days of return from travel then signed and dated by the Departmental/Divisional Manager and submitted to Accounts Payable within five working days This signature will confirm that: the claim is signed and dated by the claimant any necessary approvals and estimates are attached original receipts (or acceptable substitutes) are attached receipts agree with amounts claimed arithmetic is correct and GST rebates are claimed the claim reflects any advances/prepayments the expense is coded correctly the claim is in compliance with policy 1.4 Finance Department Processing of Expense Claims The Finance Department will ensure that the claim has received written authorization and that advances/prepayments have been cleared correctly, and will provide reimbursement within eight working days. Depending on the nature and amount of a claim, the Finance Department may at their discretion perform cursory reviews of a claim, and if discrepancies are discovered, the Departmental/Divisional Manager will be contacted. Employees will be requirecUo reimburse the District for any expenses incorrectly claimed. Detailed audits of some claims will also be performed on a regular basis. 1.5 Original Receipts Required Original receipts are required for reimbursement of expenses. For unusual occasions when an original receipt is not available, an alternative expenditure verification that is satisfactory to the Finance Department must be provided. Section 2: Expenses Not Eligible For Reimbursement Without Written Approval of the CAO. 2.1 Ineligible Expenses Overnight accommodation costs within Maple Ridge Traffic fines or parking tickets Vehicle repair, towing, or accident costs Costs reimbursed by another organization or source Spousal or partner travel costs Any expense claim which the CAO, General Manager, or Finance Department determines to be in excess of expense policy limits or standards, to be lacking adequate documentation, or to be beyond the scope, spirit, or intent of the policy. Date Printed: March 19, 2018 Page 3 of 6 Policy 5.35 Section 3: Transportation 3.1 Means of Travel Travellers may choose their means of travel. All costs, including accommodations and per diems, must be reasonable in relation to the distance travelled and the means of travel. The total amount claimed may not exceed the total cost based on a travel by air. 3.2 Travel by Own Vehicle Except for those employees receiving monthly vehicle allowances, authorized travellers using their own vehicle may, subject to Section 3.1, claim vehicle mileage for the distance travelled. Road tolls and parking costs may also be claimed. 3.3 Class of air Travel i) When a less expensive excursion fare cannot be obtained, economy class is permitted ii) The cost differential in air fares between permitted classes may not be converted into a cash benefit for the traveller iii) Benefits from any promotional offers are to be passed on the District whenever possible 3.4 Air Porter, Taxi, and Parking Air Porter or taxi fares to and from the airport/transportation terminal may be claimed. Travellers wishing to drive a vehicle to the transportation terminal and then park the vehicle for the duration of the trip may claim the cost of mileage and parking. These costs must be reasonable compared to the cost of taxi ground transportation from their home to the terminal, plus return. 3.5 Combining Business Travel with Personal Travel Travellers wishing to combine a business trip with personal travel may do so at their own expense. The traveller will be required to pay any additional living and accommodation expenses that are not associated with the business travel. 3.6 Spouse, Partner or Family Member Travel Spouse, partner or family member travel will not be paid by the District of Maple Ridge, unless the traveller is handicapped and requires personal assistance to travel on District business. Prior approval of the CAO is required. In this case the spouse or partner will be entitled to claim for the same expenses and allowances as the travelling companion. Where the cost of airfare to an out-of-town location is reduced by means of a Saturday night "stopover," the person shall be entitled to reimbursement for meals, Date Printed: March 19, 2018 Page 4 of 6 Policy 5.35 accommodation, and other expenses defined in the policy associated with the Saturday night "stopover," provided such expenses do not exceed the cost of the airfare without a Saturday night "stopover." Section 4: Accommodation, Miscellaneous Reimbursable Expenses, And Per Diem Allowance 4.1 Class of Accommodation Whenever possible, accommodation cost should not exceed the cost of a standard room, double occupancy. Travellers should book reputable accommodation close to the business or conference location at the lowest rate available to the District. 4.2 Registration Fees and Business Meals i) conference, convention, training, and course registration fees may be claimed when no overnight travel is involved and it is not possible to obtain a receipt, a meal cost may be claimed based on the prorated per diem allowance amount 4.3 Full Day Per Diem Allowance and Overnight Travel i) Actual meal expenses when overnight accommodation is not required ii) A $75.00 per diem when full day absence from the Municipality and overnight accommodation is required 4.4 Prorated Per Diem Allowance i) where partial day absence (including travelling time) and overnight accommodation is required, the per diem will be reduced, based on the following amounts: Evening Dinner Lunch Breakfast $10 $30 $20 $15 e.g., where departure for the event is after lunch, the per diem for that day would be $40. ii) Where some meals are included in the registration fee, the per diem will be reduced, based on the following amounts: Evening Dinner Lunch Breakfast $10 $30 $20 $15 e.g. Where a lunch and dinner are included in the registration fee, the per diem for that day would be $25. Date Printed: March 19, 2018 Page 5 of 6 Policy 5.35 4.5 Expenses Covered by the Per Diem Allowance i) Meals, beverages, gratuities, and taxes ii) Taxi (other than to/from transportation terminals, or conference/business centres) iii) Parking (other than at transportation terminals, conference/business centres, or accommodation site) iv) Telephone (other than District business calls) v) Nominal promotion and other business related expenses vi) Incidental expenditures for which a receipt would not normally be obtained vii) All personal supplies 4.6 Advance Claims An advance may be required prior to attending an event. The request should be submitted on a cheque requisition with supporting approval per Section 1 and details of the anticipated expenses. The advance must be subsequently supported by a claim as set out in Section 1.3, if all relevant support documentation is not available with the advance claim. Date Printed: March 19, 2018 Page 6 of 6 Policy 5.35 Br1t1 sh Co lum bia Deep Roots Greate r Heig hts Title: INVESTMENT OF MUNICIPAL FUNDS Authority: [g] Legislative □ Operational Approval: [g] Council □ CMT □ General Manager Policy Statement: Appendix C POLICY MANUAL Policy No : 5.44 Revised Versions: 5 .44 (2001) Effective Date: June 15, 2011 Review Date: June 2012 It is a fiduciary responsibility to protect public funds and to prudently manage investments in order to achieve the investment objectives of safety, liquidity and return. Purpose: Provide guidelines for the prudent investment of the municipality's cash in all Funds and Reserves. 1.0 PRUDENCE Investments shall be made with judgem ent and care, und er circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the safety of their capital as well as the probable income to be derived. 1.1 Standard of Prudence used by investment officials shall be the "prudent person" standard and shall be applied in the context of managing an overall portfolio. Investment officers acting in acco rdance with written procedures and the investment policy, and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes , providing deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments . 2.0 OBJECTIVE The investment of District funds must reflect a conservative management philosophy based on three fundamental objectives, in order of p r iority; Safety, Liquidity and Return. Pag e 1 of 10 Poli cy 5.44 2.1 Safety of principle is the foremost factor to be considered during each investment transaction. Safety in investing refers to minimizing the potential for loss of principle, interest or a combination of the two due to two types of risk, Credit Risk and Market Risk. 2.1.1 Credit Risk, defined as the risk of loss due to failure of the issuer of a security, shall be mitigated by only investing in very safe "investment grade" securities and diversifying where feasible. (see section 6.0 Authorized Investments and 7.0 Diversification) 2.1.2 Market Risk, defined as market value fluctuations due to overall changes in interest rates, shall be mitigated by structuring the portfolio based on liquidity needs as to avoid the need to sell securities prior to maturity. Also, limiting the term of the investments and, when it makes sense, diversifying the holdings to include investments that values are not correlated. 2.2 Liquidity in the investment portfolio will remain sufficient to enable the District to meet all cash requirements, which might be reasonably anticipated. The degree of liquidity is measured by the time required to convert a security into cash with a minimal risk of capital loss. This is achieved by, wherever possible, matching maturities to cash requirements. Liquidity is further enhanced by holding a portion of the portfolio in cash and readily marketable short term investments. " 2.3 Return on Investment is a highly important factor.as a significant amount of revenue is generated through investment earnings. The investment portfolio shall be designed with the objective of maximizing return subject to criteria of safety and liquidity. 3.0 DELEGATION OF AUTHORITY Authority to manage the District's investment program is derived from Section 149 of the Community Charter, as follows: Financial Officer One of the municipal officer positions must be assigned the responsibility of financial administration, which includes the following powers, duties and functions: (b) ensuring the keeping of all funds and securities of the municipality or regional district (c) investing municipal funds, until required, in authorized investments; 3.1 Management Responsibility for the investment program is hereby delegated to the Manager of Financial Planning who shall establish and maintain written procedures for the operation of the investment program consistent with this investment policy. Procedures should include references to safekeeping, buy/sell agreements, communication of instructions to custodial bank, cash management techniques, and accounting entries related to investment transactions. Such procedures shall include explicit delegation of authority to persons responsible for Page 2 of 10 Policy 5.44 investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established. The Manager of Financial Planning shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of others who have delegated authority. 4.0 ETHICS AND CONFLICT OF INTEREST Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Investment employees and officials shall disclose to the District any material financial interests in financial institutions and/or investment dealers that conduct business with the District. Investment officers and employees must conduct themselves in compliance with the District's Code of Conduct and Code of Ethics established by the GFOA, LGMA and professional accounting bodies. 5.0 AUTHORIZED INVESTMENT DEALERS AND INSTITUTIONS A list of financial institutions and investment dealers authorized to provide investment services, will be approved by the Audit and Finance Committee. The Investment Policy will be provided to these institutions and dealers to ensure they understand the District's risk profile and the type of investments that the District is able to purchase. 6.0 AUTHORIZED INVESTMENTS The District is empowered by Section 183 of the Community Charter to invest in certain types of securities. Section 183 reads as follows: Money held by a municipality that is not immediately required may be invested or reinvested in one or more of the following: (a) securities of the Municipal Finance Authority; (b) pooled investment funds under section 16 of the Municipal Finance Authority Act;. (c) securities of Canada or of a province; (d)securities guaranteed for principal and interest by Canada or by a province; (e) securities of a municipality, regional district or greater board; (f) investments guaranteed by a chartered bank; (g) deposits in a savings institution, or non-equity or membership shares in a credit union; (h) other investments specifically authorized under this or another Act. 6.1 Internal Financing: The District may, as approved by bylaw, internally finance borrowings. Such internal financing shall be for a period not to exceed 10 years, unless otherwise stated in the bylaw, and shall bear interest at the market rate. The loan and debt payments will be created through transfers in the Financial Plan. The reserve lending the funds will benefit from the earnings or interest payments. Page 3 of 10 Policy 5.44 7.0 DIVERSIFICATION The District will diversify its investments by security type and institution. With the exception of securities issued and/or guaranteed by the Government of Canada and the Province of British Columbia, not more than 25% of the District's total investment portfolio will be invested with the Municipal Finance Authority or a single province, regional district or financial institution. 7.1 Limitations on Schedule I Chartered Banks: Schedule I banks are domestic banks. Each investment will have minimum credit rating of R-1 (low) or A by DBRS. A list, approved by the Audit and Finance Committee, of eligible Schedule I banks will be maintained. 7.2 Limitations on Schedule II Chartered Banks: Schedule II banks are foreign bank subsidiaries. A list, approved by the Audit and Finance Committee, of eligible Schedule II banks will be maintained. The aggregate of Schedule II banks shall not exceed $10,000,000. Investment in Schedule II banks must: (a) be fully guaranteed by the parent bank (b) have a maximum term to maturity of three years (c) be rated a minimum of R-1 (low) by BORS 7.3 Limitations on Credit Unions: Deposits in credit unions are limited to a maximum term of one year and an aggregate limit of $10,000,000. A list of eligible credit unions will be approved by the Audit and Finance Committee. 8.0 PORTFOLIO CONSTRAINTS The District may operate a Money Market portfolio, an Intermediate portfolio and a Bond portfolio. To the extent possible, the District will match its investments with anticipated cash flow requirements to the next taxation date. 8.1 Money Market Fund: The maximum maturity of securities in this fund is one year. 8.2 Intermediate Fund: The maximum term to maturity in the intermediate fund is three years. The maximum investment permitted is 40% of the investment portfolio. 8.3 Bond Fund: The maximum term to maturing in this fund is ten years from the date of purchase. The weighted average maturity of the Bond Fund will not exceed six years. The bond portfolio shall not exceed of 35% of the total investment portfolio. In the months just prior to collection of property taxes, the holdings in the Intermediate and Bond Funds will likely be overweight. This temporary 'out of balance situation' is expected, and is necessary to retain the longer term positions, and is consistent with the investment strategy. All funds will be pooled for investment purposes to improve the yield rate and reduce administration costs through portfolio management. The General Revenue Fund will pay interest income to the funds, unless contrary to reserve policies or practice, at the Page4 of 10 Policy 5.44 average effective monthly rate for the period, less 50 basis points (0.5%). Interest will be paid and compounded each period based on the closing balance of the prior accounting period. Funds in a negative balance will be charged interest on the same method as above but at the prime borrowing rate available at the District's bank on the first day of each month. All transactions will be in Canadian dollars unless approved by the Audit and Finance Committee. Investments of longer than ten years may be advantageous if the timing of the cash needs has a long term horizon. Any such investment would require the approval of the Audit and Finance Committee. 9.0 COMPETITIVE BIDS The District shall solicit competitive quotations for the purchase and sale of securities when it is prudent to do so. This policy recognizes that from time to time, offerings of value may require immediate action. Under such circumstances, competitive bids may not be sought provided that value can be substantiated by market data information services. 10.0 SAFEKEEPING AND CUSTODY All security transactions entered into by the District shall be conducted on a delivery- versus payment'(bVP) basis. Settlement may take place at the main braKch of the District's bank in any Canadian city. Securities shall be held by the District's custodial bank or alternatively, shall be registered with the Central Depository for Securities (CDS). 10.1 Authorization: The custodial bank shall not accept delivery or payment without prior authorization and instructions from the District. 10.2 Evidence: All transactions shall be evidenced by a contract advice from the investment dealer, as well as a settlement advice from the custodial bank. 10.3 Registration: All securities that are able to be registered shall be registered in the name of the District of Maple Ridge, or the nominee of the District's custodial bank. 11.0 INTERNAL CONTROL As part of the annual audit, a review by the external auditor will be done to assure compliance with internal controls and policy. Page 5 of 10 Policy 5.44 12.0 PERFORMANCE MEASUREMENT The investment portfolios will be designed to maximize the rate of return, taking into account the District's investment risk constraints, cash flow requirements and active management strategy. This policy recognizes that the reliability of performance evaluation (i.e. comparison to benchmarks) increases with the duration of the measurement period. Returns, when there is a current market value available, will be reported on a total return basis, including both realized and unrealized gains. The benchmark rates of return shall be: 12.1 Money Market Fund: The average of the DEX 30-Day Treasury Bill Index and the yield of the Municipal Finance Authority (MFA) Money Market Pool. 12.2 Intermediate Fund: The average of the DEX 365-Day Treasury Bill Index and the yield of the MFA Intermediate Pool. 12.3 Bond Fund: The average of the DEX Short Term Index and the yield of the MFA Bond Pool. 13.0 REPORTING The Audit and Finance Committee will receive, at least quarterly, a report summarizing the investment holdings, returns and deviations from policy. Investment performance will be reported in the Annual Report. ·' 14.0 INVESTMENT POLICY ADOPTION The District's investment policy shall be approved by Council. Any modification must be approved by Council. Page 6 of 10 Policy 5.44 APPENDIX! GLOSSARY OF TERMS BANKER'S ACCEPTANCE (BA}: A short-term debt investment by a major corporation, which is guaranteed (endorsed) by a bank. It is sold at a discount, with issue periods of between 30 and 365 days and in face value multiples of $100,000. BOND: An IOU from the borrower to the lender. It refers to any interest bearing government or corporate security that obligates the issuer to pay a particular sum of money at specified intervals and the repay the principal amount of the loan upon maturity. A secured bond is backed by collateral that may be sold by the bondholder if the bond issuer fails to pay interest and principal as due. Any specific collateral does not back a debenture or unsecured bond. CALLABLE SECURITIES: Securities redeemable by the issuer prior to the scheduled maturity date. CERTIFICATE OF DEPOSIT (CD}: An interest bearing non-redeemable deposit certificate issued by a chartered bank or credit union with maturity generally between 1 and 5 yrs. Denominations may vary and will range upward frorh $5,000; interest is paid semi-annually. CENTRAL DEPOSITORY FOR SECURITIES (CDS}: A national clearing house for securities trading owned by the major banks, investment dealers and trust companies. CDS is regulated directly by the Provincial Securities Commissions and indirectly through the Federal Regulations of Financial Institutions. It manages the recording and clearing of Canadian stocks, bonds, and coupons on a book basis. The physical securities are stored in vaults of CDS and the Bank of Canada. DEBENTURE: A form of long term corporate debt that is not secured by a pledge of specific assets. Security is usually based only on the earning power of the firm. DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities. DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns. Page 7 of 10 Policy 5.44 LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes. MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold. MONEY MARKET: The market in which short-term (one year or less) debt instruments (treasury bills, commercial paper, bankers acceptances, etc.) are issued and traded. PORTFOLIO: Collection of securities held by an investor. PRUDENT PERSON RULE: An investment standard commonly used to establish fiduciary responsibility. It gives authority to the investment manager to invest in a security if it is one, which would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and the preservation of capital. RATING Evaluation of the likelihood of default by a security issuer. Canada Bond Rating Service and Dominion Bond Rating Service are the primary bond and money market security rating agencies in Canada. Standard and Poors, and Moody's Investor Service are American bond rating firms that also rate Canadian issuers. SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables are held in the bank's vaults for protection. TREASURY BILL (T-BILL}: A discount promissory note issued by the Federal or Provincial Government with a maturity of less than one year; issued in bearer form and have an active secondary market. YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) COUPON YIELD is the rate of annual payments to the lender expressed as a percentage of the par value of the security. (b) YIELD TO MATURITY is the interest rate that will make the present value of future cash flows from a security equal to the current price or market value of the security. Page 8 of 10 Policy 5.44 APPROVED INVESTMENTS Approved Schedule I Banks Canadian Imperial Bank of Commerce (CIBC) Bank of Montreal (BMO) Scotiabank (Bank of Nova Scotia) (BNS) RBC Royal Bank (RY) TD Bank Financial Group (TD) National Bank of Canada (NBC) Money Market, Senior Debt, Subordinate RS-1(high), AA, AA(low) RS-1(high), AA, AA(low) RS-1(high), AA, AA(low) RS-1(high), AA, AA(low) RS-1(high), AA, AA(low) A AA Manulife Bank of Canada Canadian Western Bank (CWB) *limit $10,000,000 and 1 year term Approved Schedule II Banks HSBC Bank Canada Citibank Canada Credit Unions Central 1 (formerly BCCU) RS-1(1ow) Van City RS-1(1ow) Coast Capital RS-1(1ow) AA(low) AA(low) Any Credit Union whene deposit is fully and unconditionally guaranteed by Central .1, Page 9 of 10 Policy 5.44 APPROVED INSTITUTIONS & BROKERS Term Deposits through any of the approved Banks & Credit Unions Institutions or brokers that securities can be bought (DVP) and held by our custodian bank: BMO Nesbitt Burns Inc. CIBC (Wood Gundy) World Markets Inc. HSBC Securities (Canada) Inc. RBC Dominion Securities Inc. TD Securities Inc. Scotia Capital Blackmont Capital Inc. Canaccord Capital Corporation Edward Jones First Canada Capital Partners Inc. Global Securities Corporation Jennings Capital Inc. PA Investments Inc. Wolverton Securities Ltd. Page 10 of 10 Policy 5.44