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Home My WebLink AboutAnnual Reports 2003.pdfFront Cover Official 2003 Reversed with Maple Leaf Theme.dƒ District of Maple Ridge British Columbia Canada 2003 Annual Report Fiscal Year Ending December 31, 2003 Mayor Kathy Morse and Members of Council Ernie Daykin Councillor Judy Dueck Councillor Candace Gordon Councillor Jon Harris Councillor Faye Isaac Councillor Craig Speirs Councillor Annual Report 2003 – District of Maple Ridge 2003 Annual Report The Corporation of the District of Maple Ridge British Columbia, Canada Fiscal Year ending December 31, 2003 Produced by: (Corporate & Financial Services Division) Finance Department Communications & Human Resources Department Telephone: 604-463-5221 Fax: 604-467-7329 www.mapleridge.org Annual Report 2003 – District of Maple Ridge Table of Contents Annual Report 2003 – District of Maple Ridge 1 Introductory Section Mayor’s Message............................................................ 2 Chief Administrative Officer’s Message .......................... 3 Strategic Direction .......................................................... 4 Organization Chart.................................................... ...... 7 Elected and Appointed Officials ...................................... 8 Commissions of Council ................................................. 9 Council Appointments...................... ............................. 10 Council Committee Structure ........................................ 11 Services Provided by Municipal Departments................ 12 Awards and Accomplishments...... ................................. 20 Summary of Services and Regional Relationships.......... 23 Director of Finance Letter ............................................. 25 Introduction to the Financial Statements ........................ 39 Financial Section Management’s Responsibility for Financial Reporting ... 41 Consolidated Statements Auditors' Report......................... ................................... 43 Significant Accounting Policies..................................... 45 Consolidated Statement of Financial Position................. 47 Consolidated Statement of Financial Activities .............. 48 Consolidated Statement of Change in Cash and Temporary Investments.............................................. 49 Notes to the Consolidated Financial Statements........... 51 Supporting Statements & Schedules Consolidated Statement of Changes in Operating Fund Balances ....................................................... .... 59 Consolidated Statement of Changes in Capital Fund Balances ........................................................... 60 Consolidated Statement of Changes in Reserve Balances .................................................................... 61 Schedule of Capital Assets ............................................ 63 Debenture Debt .................................... .........................64 Tax Levies ....................................................................70 Other Revenue from Own Sources.................................71 Schedule of Development Revenue................................72 Schedule of Sale of Services ..........................................73 Continuity Schedule of Restricted Revenues ..................74 Consolidated Expenditure Summary..............................76 Transportation Services .................................................78 General and Administrative Expenses ..................... .......79 Schedule of Protective Services .....................................80 Schedule of Sewer and Water Utilities ...........................81 Summary Schedule of Recreation & Cultural Revenue and Expenditures .........................................82 Continuity Schedule of Reserves....................................84 C.D.M.R. Developments Ltd. Auditors’ Report to the Shareholder ...............................87 Balance Sheet................................................................89 Statement of Revenue, Expenses and Retained Earnings ....................................................................90 Statement of Cash Flows ...............................................91 Notes to the Financial Statements ..................................92 Statistical Section General Comparative Statistics ......................................93 Demographics ........................................................ .......95 Major Property Taxpayers ............................................96 Assessment/Taxation Comparative Statistics..................97 Property Assessments and Tax Rates ................... ..........98 Expenditures -Last Five Fiscal Years Comparison.........99 Capital Assets Acquired -Last Five Fiscal Years Comparison ............................................................. 100 Map ......................................................Inside Back Cover Mayor’s Message Annual Report 2003 – District of Maple Ridge 2 Kathy Morse Mayor On behalf of Council, I am pleased to present the 2003 Annual Report for the District of Maple Ridge. Our Annual Report is an important document that presents an overview of 2003 to the citizens and customers of Maple Ridge. The Report is a blend of financial information, growth statistics, and community accomplishments of the past year. 2003 was an exciting year for Maple Ridge. For the 13th consecutive year, staff at Municipal Hall won the Canadian Award for Financial Reporting from the Government Finance Officers’ Association, as well as the Award for Outstanding Achievement in Popular Annual Financial Reporting for the 7th time. Plans for the new Fraser Crossing and the Connector are well under way. This bridge, which will have enormous impact on our community, may also provide the right environment for economic development. As work begins on the bridge, the timing of the completion of the Official Community Plan (OCP) is critical. This document, the overall picture of the community, will help us accommodate the new development we will see in the very near future. In a time of growth, it is important to take measures to protect the natural beauty of our community. Stream mapping is complete and we are now able to provide citizens with a clear picture of setbacks and environmental protection. Maple Ridge has grown tremendously in the past decade. Much of that growth has been residential and has resulted in a tax assessment base that is not as diverse as it should be. The current OCP review shows the need for more diversification in our tax base, and this new community plan is the instrument by which we can encourage a better mix of commercial, industrial and residential uses. The Fire Department Master Plan is complete and has been submitted for financial review. In 2003, Maple Ridge joined the integrated homicide unit plan of the RCMP and increased our compliment of police officers accordingly. Further work on the capital reserves for the detachment is under way. Although there are always financial challenges, the citizens of Maple Ridge rise to each of them in a way that is unique to this community. Much of the energy and enthusiasm found here can be attributed to tireless groups of volunteers who greatly enhance what your tax dollars are able to provide. This keeps our community working together and looking toward the future. Council is making the social, environmental and economic health of Maple Ridge its top priority. As we work together to build the Maple Ridge of the future, your participation is always encouraged and welcome. KATHY MORSE Mayor Chief Administrative Officer’s Message Annual Report 2003 – District of Maple Ridge 3 Jim Rule CAO It is with great pleasure that I provide introductory comments to the 2003 Annual Report. Maple Ridge is a vibrant and dynamic community that is one of the fastest growing municipalities in British Columbia. The District is well positioned to be part of the excitement being generated in British Columbia as the Province gears up for the 2010 Olympics Games. Maple Ridge provides a wonderful quality of life. Its rural character and small town feeling combine with excellent services and facilities to create a lifestyle that is the envy of many other communities. With 73,000 citizens and growing, Maple Ridge welcomes new residents and businesses almost weekly. The continuing challenge is to manage our rapid growth and at the same time maintain the unique character that is valued so much by our citizens. Maple Ridge is one of eight Regional Town Centres identified in the GVRD “Livable Region Strategic Plan”. Our objective is to create a vibrant commercial downtown hub for the region. Some of the major initiatives to be undertaken in 2004 are: • The start up of an Economic Development Office with the prime objective to diversify and grow the economy in Maple Ridge. • Undertake an Official Community Plan review. • Complete a long term sustainable financial plan to ensure the continued financial health of the District. I would like to express my thanks to the dedicated employees of the district who provide quality services to our residents. We are very fortunate to have such a fine group of individuals who through their efforts, make Maple Ridge a great place to live. J. L. (JIM) RULE Chief Administrative Officer Strategic Direction Annual Report 2003 – District of Maple Ridge 4 VALUE STATEMENTS Leadership To encourage innovation, creativity, and initiative. Service To be fair, friendly, and helpful. Reputation To stress excellence, integrity, accountability, and honesty. Human Resources To recognize that our people are our most valuable resource. Community To respect and promote our community. VISION A safe and livable community for our present and future citizens. BUSINESS PURPOSE The District of Maple Ridge is committed to the effective and efficient delivery of services for our customers and citizens. STRATEGIC FOCUS AREAS · Governance · Financial Management · Inter-Government Relations/Partnerships · Community Relations · Economic Development · Safe and Livable Community · Transportation · Smart Managed Growth · Environment GOALS Governance Function as an open government with the greatest possible access by citizens to information and decision-making processes. · Hold town hall meetings on topics of interest to our citizens. · Provide the public with a monthly update detailing Council’s workplan and a calendar of upcoming discussion items. · Use and promote the website as a method of providing quality information to the citizens of Maple Ridge. Economic Development Create an environment that will attract and retain investment in the community. · Establish an Economic Development Office. · Promote business opportunities in Maple Ridge. Safe and Livable Community Ensure that quality emergency services are delivered in a timely, effective, and efficient manner. · Acquire land and begin construction of Firehall #4. · Provide fire and safety education to children and adults. Address the impacts of emerging social issues on the local community and citizens through social planning and collaboration with other levels of government and local service providers. · Establish a social planning function within District staff. · Support local organizations that provide food and shelter to homeless and disadvantaged citizens. Enhance the natural beauty of Maple Ridge. · Support Communities in Bloom and their efforts to promote Maple Ridge through the annual contest. · Maintain the landscaping in the downtown area. · Support organizations such as Adopt-a-Block. Strategic Direction Annual Report 2003 – District of Maple Ridge 5 Transportation Maintain and enhance a multi-modal transportation system within Maple Ridge to provide citizens with safe, efficient alternatives for the movement of individuals and goods. · Seek partnerships with other levels of government for major road projects to maximize the value received by taxpayers. · Inspect and maintain sidewalks, roads, and streetlights annually. Environment In partnership with other levels of government, adjacent municipalities, and other community groups, develop programs and projects to preserve and enhance the natural assets of Maple Ridge. · Maintain agreements with local environmental groups concerned with the protection of Maple Ridge watercourses. · Encourage citizens to take advantage of curbside recycling, reducing the burden on landfill sites. STRATEGIC DIRECTIONS Governance · Conduct our business in a manner that will uphold and enhance the public trust. · Function as an open government with the greatest possible access by citizens to information and decision making processes. Financial Management · Develop multi-year financial plans that not only address immediate needs but also address the longer-term financial sustainability of our community. · Use a formal, business planning framework as a means to structure decision-making and publicly report our performance. · Identify methods to expand the tax base and generate non-tax revenue. · Continue to use a user-pay philosophy. · Provide high quality municipal services to our citizens and customers in a cost effective and efficient manner. Inter-Government Relations/Partnerships · Develop and maintain strong, positive working relationships with our adjacent neighbours, the municipalities of Pitt Meadows and Mission; the Katzie First Nations; the provincial government; the Greater Vancouver Regional District; and, TransLink. · Identify and promote the use of partnerships with public agencies; business; not-for-profit; community groups; and, volunteers to provide local government and community services in a cost-efficient and effective manner. Community Relations · Encourage citizen participation in local government and local government decisionmaking. · Develop methods to communicate on a timely basis with citizens and community groups. · Recognize and support the important contribution of volunteers in the community. · Strive for enhanced service levels, quality of life and independence by citizens and community organizations in the delivery of leisure services and other municipal services through community development. Economic Development · Use a formal economic development strategy as a means to structure a positive business and investment climate within Maple Ridge. · Identify, in consultation with community stakeholders, specific new investment and employment opportunities. · Build a sustainable community that includes a balance of land use types. · Develop a pro-business, customer-service oriented approach in the delivery of municipal services. · Develop and maintain high quality community documentation and promotional material to attract investment and employment. Strategic Direction Annual Report 2003 – District of Maple Ridge 6 Safe and Livable Community · Establish an emergency response and recovery plan in consultation with other public sector agencies, community groups, and other relevant stakeholders. · Establish neighbourhood and community education programs to provide citizens with information and materials on emergency planning procedures. · Ensure development standards incorporate crime prevention, safety and security concepts. · Develop preventative as opposed to remediation initiatives in the delivery of fire and police services. · Ensure that quality emergency services are delivered in a timely, effective and efficient manner through the development of multi-year business plans, which include detailed multiyear financial plans. · In partnership with community groups, assist in the provision of leisure and cultural services to ensure access by all citizens. · Address the impacts of emerging social issues on the local community and citizens through social planning and collaboration with other levels of government and local service providers. Transportation · Maintain and enhance a multi-modal transportation system within Maple Ridge to provide citizens with safe, efficient alternatives for the movement of individuals and goods. · In co-operation with other regional stakeholders, identify improvements to the intermunicipal transportation system within Greater Vancouver. Smart Managed Growth · Develop a land use management process that is timely, open, inclusive, and consultative. · Using the Official Community Plan, ensure growth is well managed and establishes a balance of use types that is efficient and enhances the unique quality of life in Maple Ridge. · Develop land use regulations, bylaws, procedures, and practices to implement the Official Community Plan. · Protect and manage existing municipal infrastructure through the preparation of appropriate plans to ensure development, maintenance and renewal of parks and open spaces; roads; sidewalks; water; sewer and stormwater systems; and, public buildings. Environment · Promote individual and community responsibility for the stewardship of natural resources. · Identify and protect environmental features (such as watercourses) and areas that require special recognition and management. · In partnership with other levels of government, adjacent municipalities, and community groups, develop programs and projects to preserve and enhance the natural assets of Maple Ridge. · Promote alternative modes (pedestrian, bike and public transit) of travel to reduce reliance on the automobile. Organization Chart 2003 Annual Report 2003 – District of Maple Ridge 7 Citizens of Maple Ridge Mayor and Six Councillors Chief Administrative Officer Jim Rule Provides leadership and direction for senior staff in the day-to-day and long-term business affairs of the District in accordance with Council goals. Community Development, Parks & Recreation Services General Manager Mike Murray Customer Service & Marketing Aquatics Arts/Culture/Heritage & Museum Community/Neighborhood Development Emergency Program Parks, Facilities & Cemeteries Recreation Centres/Arenas Social Planning Special Events Special Services Volunteer Services Youth and Seniors Services Corporate & Financial Services General Manager Paul Gill Customer Service Communications Finance Human Resources Information Technology Land & Property Issues Legal Matters Municipal Clerk Risk Management Website R.C.M.P. Insp. Fraser MacRae Provides the Community with all policing services. Fire Services Emergency Services Fire Prevention Inspections Public Education Public Works & Development Services General Manager Frank Quinn Customer Service Building Bylaw Enforcement Engineering Environmental Protection Inspections Licenses & Permits Planning & Development Procurement Public Works Recycling Police Services Communications Customer Services Guard Duties Records Elected & Appointed Officials Annual Report 2003 – District of Maple Ridge 8 2002 – 2005 Council Mayor Kathy Morse Councillor Ernie Daykin Councillor Jon Harris Councillor Judy Dueck Councillor Faye Isaac Councillor Candace Gordon Councillor Craig Speirs 2003 Appointed Officials Chief Administrative Officer ................................................................... Jim Rule, M.A. B.ES. (Hon.), P. Mgr., MCIP General Manager: Community Development, Parks & Recreation Services.............................. Michael Murray, B.R.E. General Manager: Corporate & Financial Services.................................................... Paul Gill, B.B.A., C.G.A., F.R.M. General Manager: Public Works & Development Services............................. .............Frank Quinn, P.Eng., MBA PMP Chief Information Officer...................................................................................................John Bastaja, B.A., M.R.M. Municipal Clerk..............................................................................................................Terry Fryer, B.A. Sc., P. Eng. Municipal Engineer................. ................................................................................... Andrew Wood, M. Eng., P. Eng. Director of Communications & Human Resources......................................... ............... John Leeburn, B.Comm., MBA Director of Community Fire Safety/Chief ................................................................................................. Dane Spence Director of Development Engineering ................................................................................................ Jeffrey Scherban Director of Engineering Operations .............................................................................Russ Carmichael, AScT, F.R.M. Director of Engineering Projects................................................ ................................................. David Pollock, P.Eng. Director of Finance ........................................................................................................... ............Jacob Sorba, C.G.A. Director of Fire Operations/Chief .................................................................................................... Peter Grootendorst Director of Licences, Permits & Bylaws ................................................................................. Brock McDonald, B. Sc. Director of Parks & Facilities ....................... ............................................................................................ Mike Davies Director of Planning.......................................................................... ......................... Jane Pickering, M.C.P., M.C.I.P. R.C.M.P................................................................................................................................Inspe ctor Fraser MacRae Municipal Auditors Municipal Bankers BDO Dunwoody LLP TD Canada Trust Municipal Solicitors Lidstone Young Anderson General Russell & DuMoulin Labour Murdy & McAllister Public Private Partnership & Properties Commissions of Council Annual Report 2003 – District of Maple Ridge 9 December 31, 2003 Economic Advisory Commission Chair/Home Based Business Sector Ian McLeod Vice Chair/Community-at-Large Shawn Mohajeri Chamber of Commerce Liaison Racine Barbour Community-at-Large Janet Smith Education Community Liaison Rick Carruthers Finance Sector Akeela Davis Government Relations Sector Kim Day Human Resources Development Centre Liaison Kathryn Marven Industrial & Manufacturing Sector Brenda Jenkins Maple Ridge Pitt Meadows Tourism Society Pat Kramer Natural Resources Sector Ruth Anderson Residential Development & Construction Sector Eddy Arndt Retail & Marketing Dennis Kinsey Council Liaison Councillor Ernie Daykin Community & Business Relations Brock McDonald Sandra Ramsay Maple Ridge & Pitt Meadows Parks and Leisure Services Commission School District No. 42 Trustee Cheryl Ashlie Trustee Dave Rempel Trustee Kathie Ward Maple Ridge Council Liaison Mayor Kathy Morse Councillor Judy Dueck Councillor Craig Speirs Maple Ridge Citizens At Large Kathy Reinheimer Dave Roemer Jo Anne ten Brink Gerry Trerise Pitt Meadows Council Liaison Mayor Don MacLean Councillor Debra Eisel Councillor Gwen O’Connell Pitt Meadows Citizens At Large Bunny Horne Keith Nightingale Municipal Liaison Mike Murray David Boag Ingrid Kraus Jaynne Aster Council Appointments 2003 -2004 Annual Report 2003 – District of Maple Ridge 10 Advisory and/or Legislated Committees Advisory Committee on Accessibility Issues Advisory Design Panel Bicycle Advisory Committee Community Heritage Commission Economic Advisory Commission Parks & Leisure Services Commission Social Planning Advisory Committee Community Groups & Organizations (Liaisons) Chamber of Commerce Fraser Health Authority Ridge Meadows Arts Council Ridge Meadows Recycling Society Ridge Meadows Seniors Society Ridge Meadows Youth Council Tourism Maple Ridge & Pitt Meadows Government Agencies E-Comm Fraser Basin Council Fraser Valley Regional Library Greater Vancouver Regional District Greater Vancouver Regional District Labour Relations Bureau Lower Mainland Treaty Advisory Committee Special Committees Communities in Bloom Court of Revision (Frontage Tax) Development Agreements Committee Emergency Planning Committee Maple Ridge/Pitt Meadows Airport Society Smart Growth on the Ground Staff Committees Employee Awards Committee Labour Management Standing Committees Audit & Finance Committee Committee of the Whole Council Committee Structure 2003 Annual Report 2003 – District of Maple Ridge 11 Financial Planning Committee The British Columbia Community Charter requires municipalities to prepare a 5 Year Financial Plan which is adopted annually by bylaw before May 15. The Plan may be amended at any time by bylaw. Each year, the Financial Plan from the previous year remains in place until the Plan for the current year is adopted. As part of the Plan process, Council must undertake a process of public consultation regarding the Financial Plan before it is adopted. The Community Charter does not specify the format of the public consultation process and it may be varied at Council’s discretion to suit the local community. Committee of the Whole Responsibility for all other matters not assigned to other sub-committees as noted hereinafter: Community Development, Parks & Recreation Services Responsibility for parks recreation and cultural activities, programs, facilities, liaison with community groups, community development work, and accessibility as well as emergency preparedness. Corporate & Financial Services Responsibility for general administrative issues, protective services, personnel and labour issues, financial management, audit services, and policy development. Public Works & Development Services Responsibility for land use and zoning issues, long-range planning, growth management, the Official Community Plan, bylaw enforcement, business licensing, economic development, engineering services, transportation matters, development charges, and associated functions. Services Provided by Municipal Departments Annual Report 2003 – District of Maple Ridge 12 At A Glance: · Provided 2,197 programs to 16,147 participants and recorded 137,088 people at numerous special events · Recorded 317,607 Leisure Centre admissions · Arts Centre & Theatre opened in May · Maintained a total of 223 ha of parkland · Installed 1,300 feet of LED Christmas lights The District’s operational and administrative structure is comprised of four divisions. A general overview of each is provided below. Administration: Chief Administrative Officer – Jim Rule The Chief Administrative Officer is responsible for the overall administration of the District’s departments, developing corporate policy, providing leadership and direction for senior staff in the day-to-day and long-term business affairs of the District in accordance with Council goals, and providing advice to Council about District organization and operating procedures. Community Development, Parks & Recreation Services: General Manager – Mike Murray The division’s role is to ensure coordination of resources in management and development of parks, delivery of leisure services, acting as a networking agent, information broker, and community resource. Identified community needs are addressed by a variety of approaches from direct provision of services to establishing partnerships. Parks & Facilities Department Director – Mike Davies Recreation Department Managers – Don Cramb, Shelley Jorde, Kelly Swift, Lex Tierney, Sue Wheeler The two departments are responsible for the delivery of a wide range of leisure activities in both Maple Ridge and Pitt Meadows including physical, cultural, creative, social, and intellectual pursuits to further a sense of community belonging and the growth and well-being of individual citizens. An agreement was reached in 1994 for the joint delivery of Parks and Recreation Services in both Maple Ridge and Pitt Meadows. Direction is provided through a joint Parks and Leisure Services Commission comprised of three members of each Council including both Mayors, three members of the School Board including the Chair, four citizens from Maple Ridge, and two from Pitt Meadows. The 2001 Parks, Recreation and Cultural Master Plan provides a comprehensive framework for the provision of services in both communities. Wherever possible the departments function in partnership with the private sector and community-based organizations to provide leisure services utilizing a community development approach which is defined in policy statements adopted by the Commission and both Councils. The service guidelines emphasize the protection of natural resources, the provision of basic leisure skill development, social opportunities, family-oriented leisure services and preschool leisure opportunities, exposure to the arts, leisure education, and opportunities for reflection/escape. The departments also strive to facilitate the integration of the generations, the provision of public opportunities for interpretation of the environment, special public events and exposure to sporting events, opportunities for social interaction and encourage community beautification. The Recreation Department operates numerous programs for public participation. Residents are involved in drop-in use of the seniors’ recreation centre, youth centre, ice arena, public library, fitness, and aquatic facilities. The two departments provide a number of public meeting and activity facilities including the Leisure Centre (three pools, racquet courts, a fitness testing and rehabilitation centre, fitness facilities, a gymnasium and the 15,000 sq. ft. Greg Moore Youth Centre). There are also several buildings at the Maple Ridge Fairgrounds, Hammond Pool, the Hammond Community Centre, the Pitt Meadows Recreation Hall, the Pitt Meadows Family Recreation Centre, and Harris Road Pool. They are also involved in partnerships with others to operate the curling rink, the public library, the Arts Centre & Theatre, the Whonnock Community Services Provided by Municipal Departments Annual Report 2003 – District of Maple Ridge 13 Centre, the Museums (Maple Ridge and Pitt Meadows), and the Planet Ice Twin Arenas, the Pitt Meadows Arenas, the Maple Ridge Golf Course, and several historic sites. The Parks and Facilities Department is responsible for operating the Municipal parks system, which includes actively used parkland, sports fields, and significant greenbelt areas. The Department operates two Municipal cemeteries by maintaining the grounds, and by providing interment, associated record keeping, and public assistance. The Parks and Facilities Department oversees the maintenance of all Municipal facilities including Recreation Facilities, the Municipal Hall, Fire Halls, and Public Safety Buildings as well as rental and leased properties including an ongoing preventative maintenance system. The functions carried out include janitorial services as required, elevator, boiler, heating, air handling service contracts, and energy management. Parks & Leisure Services works with several hundred community organizations and agencies (incl. the School District and Douglas College) in the delivery of leisure services, oftentimes in partnership with the District through use of facilities and resources. As noted above in 1994 Maple Ridge entered into a Joint Parks and Recreation Agreement with the District of Pitt Meadows. The Agreement provides for joint use and management of parks, facilities, and leisure services within a boundary that includes both municipalities. The synergy created from this union provides significant benefits and cost savings to each municipality. The residents of each community have full access to programs and facilities in either community. Cost savings are experienced because of economies of scale for operations and future capital investments will be made that benefit both municipalities collectively and, therefore, eliminate duplication. Maple Ridge is contracted to manage the operation and costs are shared based on a populationbased ratio. Corporate & Financial Services: General Manager – Paul Gill The Corporate & Financial Services Division is responsible for making recommendations to merge and align strategic planning, best practices, performance measures and budget priorities that guide decision-making in our organization. In addition, we are responsible for carrying out corporate initiatives as directed by Council and the Corporate Management Team. The Division consists of four departments: Information Services, Clerks, Finance, and Communications & Human Resources. We also provide support to the RCMP, Police Services, and the Fire Department Municipal Clerk’s Office Municipal Clerk – Terry Fryer The Municipal Clerk’s Office provides a link between the citizens, the District, and other government bodies. This office is the oldest among public servants and by statute the Municipal Clerk is responsible for the preparation and preservation of the minutes, by-laws and other records of the District. Traditionally, the Clerk’s section has been responsible for the proper conduct of local government elections and referendums. Responsibilities have expanded to ensure that all District actions are conducted in accordance with increasingly complex federal, provincial and municipal government legislation including preparation of all statutory notifications and advertisements of District business. In addition, support of the Municipal Council and staff includes education regarding current government legislation. This section has progressed from only being the record keeper for legal documents, minutes and by-laws to also being responsible for corporate wide records management and Freedom of Information and Protection of Privacy Act administration. It also provides support for the organization through the provision of centralized functions such as switchboard/reception and mail. This section also administers the acquisition, management, and sale or lease of District property, as well as District risk management, insurance, and litigation matters. Services Provided by Municipal Departments Annual Report 2003 – District of Maple Ridge 14 At A Glance: · Tax Installment Program Value Collected – $3.26 million · Website Visitors – 237,167 · Dog Licences Issued – 6,745 · Freedom of Information Act Requests – 24 · Formed Communications Department and amalgamated with Human Resources Communications & Human Resources Director -John Leeburn The Communications & Human Resources Department provides advice and assistance to Council and staff at every level in the organization. The Department’s activities include disseminating timely and accurate information, ensuring customers and employees have ample opportunities for input/participation, and developing communications strategies for specific issues. We are also responsible for maintaining and improving the website, assisting with the advertising and promotion of District programs and events and, creating and supporting a consistent visual identity for District communications. One of the District’s Corporate Values states “people are our most valuable resource.” The Communications & Human Resources Department plays a key role in recruiting, transferring, and promoting the best people for the job. We also strive to set our employees up for success by providing them with the skills to meet the challenges of today and tomorrow. In this vein, the District continues to make a very strong commitment to professional development and performance planning. The Department ensures the training needs of the organization are identified and coordinates the provision of training through both in-house and external suppliers. We also coordinate and support District performance planning, which allows us to gauge morale, training, and attendance. More than 80% of the District’s employees are governed by the terms of the Collective Agreement in place between the District and the Canadian Union of Public Employees. The negotiation and day to day administration of the agreement (including grievance and classification administration) is a key service provided. We administer a number of critical programs, which contribute to the wellbeing and productivity of our employees. These include: the attendance management program, employee assistance program, the occupational health & safety program, the employee recognition and suggestion programs, and the administration of the employee welfare benefits programs. Information Services Department Chief Information Officer -John Bastaja The Department manages the District’s computer systems and information resources. The Municipal network consists of a 100Mb Ethernet network using 22 Windows 2000 servers that support 285 personal computers at eight sites. Two sites are accessed via a wireless radio network. More than 50 different enterprise-wide business systems run on the computer network, including a financial system, property and taxation, payroll, materials management, budget system, recreation system facility bookings, trade licences, and the Geographical Information System (GIS). The District has been upgrading its business applications recently with a new recreation management system, a new property system, and improved capability in the Financials portfolio, as well as web-based mapping. Many of the older applications and most of the new systems access an Oracle database. District staff utilize desktop computers for word processing, spreadsheet, database access, desktop publishing, e-mail, Internet access, and drafting and map production. Information Services staff support the Microsoft Office suite of products on the Windows 2000 operating system. Services Provided by Municipal Departments Annual Report 2003 – District of Maple Ridge 15 Finance Department Director -Jacob Sorba The Finance Department provides financial services through cooperative interaction with customers, and co-workers within a framework of shared values. Responsibility and authority is derived from legislation mandated by the British Columbia Local Government Act, Provincial and Federal Statutes and Municipal bylaws. From a legal and community perspective, the Department’s mission is to “uphold the public trust while striving for financial excellence”. From a corporate perspective, the department strategy and business plan is to support the administrative and financial needs of the District thereby enhancing the quality of service to the public. This emphasis is on providing monthly financial reports, providing financial analysis and business advice to departments through a team of customer advisory representatives, partnering with financial institutions to offer alternatives in meeting the needs of customers and seeking innovative ways to attract new revenue sources. Specific functions include the preparation and monitoring of the Five Year Consolidated Financial Plan and the Annual Financial Statements; preparing and interpreting interim financial statements; levying and collecting municipal taxes and utility fees; processing accounts payable and receivable; development and maintenance of financial systems; investing and safeguarding of the District’s financial assets; and the provision of internal audit functions, as well as general cashiering services. In addition, the Department is responsible for reporting financial matters to the Audit and Finance Committee. Public Works & Development Services: General Manager – Frank Quinn The Public Works and Development Services Division is responsible for the administration and implementation of municipal policies, bylaws, and services pertaining to the management of development, building construction, infrastructure, growth, renewal, and maintenance in the District. The Division consists of Engineering; Planning; Operations; and Business Licensing, Permits and Bylaws. The Recycling Society also liaises with Council through this Division. Engineering Department Municipal Engineer – Andrew Wood The Engineering Department provides municipal engineering services to residents of Maple Ridge. Municipal Engineering is the application of engineering methods to the analysis, planning, design, construction, and record keeping of public works facilities and programs relating to infrastructure. Central to the business of the Department are four core customer service areas: · Drainage and Terrain Engineering · Transportation and Traffic Engineering · Wastewater (Sewer) Engineering · Waterworks Engineering The Department provides for management, planning, analysis, policy, program and project development, initiation, implementation, and evaluation. These core services are mandated through a series of bylaws such as the Water, Sewer, Soil, Subdivision, and Street and Traffic Control. The services are managed with an emphasis on improved service quality, technology utilization, risk management, and environmental performance. This is important because the infrastructure assets of the District in water distribution, highways, sewage and drainage collection systems are estimated at approx. $440 million. Services Provided by Municipal Departments Annual Report 2003 – District of Maple Ridge 16 Operations Department Director – Russ Carmichael The Operations Department is a front line provider for basic public works services including Transportation Facilities, Fleet Management, Storm Water Management, Water Distribution, and Sewage Disposal. Operational focus is on ensuring the health and safety of the citizens of Maple Ridge; protecting the District’s large investment in the public works and underground infrastructure; protecting the environment; maintaining current service levels; providing amenity and convenience features; and providing these services at a minimum cost to the taxpayers in a manner as responsive to their needs as possible. The Operations Department is structured as follows: · Road Works is led by the Superintendent of Roads & Equipment. Activities include: asphalt patching, sidewalk maintenance, road grading, snow & ice control, bridge maintenance, street sweeping, traffic signs, etc. · Storm and Sanitary Sewer Works is led by the Superintendent of Sewers. Activities include: vegetation control, ditch cleaning, storm sewer and culvert maintenance, flushing storm & sanitary sewer lines, maintenance of sanitary sewer mains and service connections, collection of sewage & transfer to GVRD, etc. · Waterworks is led by the Superintendent of Waterworks. Activities include: maintenance of water mains and service connections, servicing fire hydrants, collecting water samples, reading water meters, installation and maintenance of water meters, etc. · Electro/Mechanical Works is led by the Manager of Electro/Mechanics. Activities include: maintenance of traffic control devices, street lighting, sewer and water pump stations, water reservoirs & chlorinating stations, radio communication system, SCADA system, and a variety of electronic equipment. · Fleet Management Works is led by the Director of Engineering Operations and the Superintendent of Roads & Equipment. Activities include: equipment performance measures, vehicle replacement, equipment charge out rates and equipment reserve funding, etc. · Purchasing is led by the Manager of Procurement. Responsibilities include implementation of the Municipal Purchasing Policy, Contract Tenders, Municipal Stores, participation in Public Sector Cooperative Groups, and administration of the Purchasing Card Program. Each functional area within the Department closely monitors productivity, efficiency and unit cost, to be confident that our customers receive quality service at competitive prices. Calls are received in this Department 24 hours per day 7 days per week and are investigated, responded to and recorded in the public action request system. Planning Department Director -Jane Pickering The Planning Department is responsible for pursuing Council’s direction in land use policy creation and the management of a variety of development applications. The Department is also involved with data collection, monitoring and the dissemination of information and liaison with a number of internal and external agencies. A large component of the Departments service lies in the area of corporate support as assistance is given to committees of Council as well as to initiatives from other areas of the corporation. The Department has two sections as follows: Development and Environmental Services The Development and Environmental Services section is primarily involved in the file management of the majority of applications received in the Planning Department including development permits and subdivision. This group is also responsible for the provision of the Department’s environmental services, including policy creation, the issuance of permits, and enforcement. The Services Provided by Municipal Departments Annual Report 2003 – District of Maple Ridge 17 At A Glance: · Water Samples Tested –956 · Roads Swept – 4,470 km · Commenced Official Community Plan review · Issued building permits with a construction value over $113 million · Improved Bike lane on 224 St & 124 Ave provision of mapping services also falls within the responsibilities of this section. Examples of responsibilities in this section are: · Implementation of Development Application Standards Bylaw. · Coordinating the Environmental Review Committee. · Processing development files incl. amendments to the Official Community Plan and Zoning Bylaw, Land Use Inquiry, Subdivision, Development Permit, Development Variance Permit, and Land Reserve Commission filling applications. · Research Environmental component of Emergency Response Plan. · Review contract for the Mosquito Control Program and research new contract provisions · Assess changes in Provincial Regulations. · Provide staff support to the Bicycle Advisory Committee. · Provide staff support to the Board of Variance. · Arboricultural services including landscape inspection, street tree selection and inspection, and hazardous tree assessments for municipal work sites. Community Planning The Community Planning section undertakes research, special projects, and reports on the direction the District is taking as set out in the Official Community Plan. In the area of development application management, staff work with a file manager from the Development and Environmental Services group in the preparation of development cases. The area planners also provide the policy direction and research capabilities for the Department and provide support to the Social Planning Advisory Committee, the Community Heritage Commission, and the Advisory Design Panel. Examples of responsibilities in this section are: · Zoning and Official Community Plan policy review and development. · Professional support and advice to Council, committees of Council, members of the public, community groups, community agencies, and independent consultants. · Technical assistance to other departments and the corporation. · Update website information. · Brochure development. · Creation and review of the Official Community Plan community and ancillary neighbourhood plans. · Review of bylaws related to development. · Participation in GVRD committees as needed. Business Licensing, Permits & Bylaws Director – Brock McDonald The Business Licensing, Permits & Bylaws Department is responsible for the delivery of the District’s economic development, by-law enforcement, animal control and business licensing and permit application and inspections programs. In consultation with the Economic Advisory Commission, we initiate, develop and facilitate opportunities to enhance Maple Ridge’s business climate through information development, promotional activities, support of small business and strategic economic planning; we ensure public compliance with municipal by-laws; we provide an effective animal control program; we enhance traffic flow in the downtown core through enforcement of parking time limitations; we maintain the business licensing system; we process building, plumbing, electrical and gas permit applications and inspect the works carried out; and we provide quality customer service. Services Provided by Municipal Departments Annual Report 2003 – District of Maple Ridge 18 At A Glance: · Emergency Incidents (fires, rescues) attended – 1,595 · Man-hours attending calls – 21,374 · $44,400 and 10,000 lbs. of food raised for charities · Implemented Fire Sprinkler Bylaw · Provided fire service to the Interior of BC Maple Ridge Fire Department Fire Chief, Director of Operations – Peter Grootendorst Fire Chief, Director of Community Fire Safety – Dane Spence The Department provides a proactive approach to fire services through the development of multiyear business plans, which include detailed multiyear financial plans. The primary mission of the Fire Department is the protection and preservation of life, property and the environment for Maple Ridge citizens. This service is provided by a group of 95 dedicated paid-on-call firefighters and six full-time officers as well as two administrative support staff. We rely heavily on cross-training and good communication to ensure that the department continues to function efficiently and effectively. Each of the career officers assumes responsibility for the operation of individual Fire Halls. In addition to administrative duties, the career officers assume the role of Duty Chief, which involves responding to all serious Fire Department emergency calls 24 hours a day, for a period of one week on a rotational basis. In 2003 the Fire Department responded to 1,595 assistance calls. The types of emergency responses provided are Alarm Response, Fire Suppression, Rescue, Hazardous Material Spills and response for Medical Aid. A great range of service is provided under these general categories. The firefighters are trained to the highest level of First Responder First Aid available in the Province. These skills are used to provide care to our firefighters and the public in the event that the ambulance service is delayed or the incident is of sufficient size or complexity that the ambulance paramedics require assistance. The use of Automatic External Defibrillators enables us to provide the most modern first responder treatment for heart attack victims. Our firefighters are trained to meet the requirements of BC Firefighter Standard, Level II. Through an aggressive program of proactive inspections and public education the number and seriousness of emergencies can be greatly reduced. The Fire Prevention Office conducts fire safety inspections of public buildings, high occupancy dwellings, day care, and adult care facilities to ensure a basic level of life safety. They are also involved in business licence approvals and consulting on design and development. In 2003, a comprehensive fire sprinkler bylaw was adopted that requires new homes to be equipped with a basic fire suppression system, designed to stop an accidental fire from becoming a life-threatening event. This initiative will ensure the District continues to develop into a fire safe community. The Fire & Life Safety Educator coordinates the public education program, which uses the “Learn Not To Burn” curriculum. This program is taught to children through a school program and fire hall visits by girl guides, scouts and other organizations. Fire education is also provided to adult groups who request it. The Department is leading the Province in its delivery of the Arson Prevention Program for Children (TAPPC) for juvenile fire setters which reduces the risk of fire and injury in high hazard residences and provides fire education to children at risk. Firefighters in combination with a contract mechanic provide a comprehensive preventative maintenance program on all equipment and trucks. The Fire Department is actively involved in the development and testing of the Municipal Emergency Program. As residents of Maple Ridge, the officers and firefighters strive to create a safe community for their families and neighbours. Services Provided by Municipal Departments Annual Report 2003 – District of Maple Ridge 19 At A Glance: · Traffic safety initiative to reduce crashes by 30% by 2010 · Provincially recognized School Liaison program · Ran successful Youth Academy and Youth Hockey Camp · Volunteers with RCMP Programs – 2000 Ridge-Meadows R.C.M.P. Inspector – Fraser MacRae The Ridge Meadows Detachment of the Royal Canadian Mounted Police provides Police Services to the District. The Mission Statement of the RCMP reads: “The Royal Canadian Mounted Police, is Canada’s National police service. Proud of our traditions and confident in meeting future challenges, we commit to preserve the peace, uphold the law and provide quality service in partnership with our communities. We: will be a progressive, proactive and innovative organization, provide the highest quality of service through dynamic leadership, education and technology in partnership with the diverse communities we serve, be accountable and efficient through shared decision making, ensure a healthy work environment that encourages team building, open communication and mutual respect, promote safe communities, and demonstrate leadership in the pursuit of excellence.” To meet the philosophical and operational requirements of the Mission Statement, the Ridge Meadows Detachment is divided into sections that are responsible for various aspects of the police role. Such specialization not only allows for the job to be performed more effectively but also allows for the development of expertise and professionalism. The major sections are: · General Duty: -Attends all emergencies relating to personal safety and are responsible for the investigation of offences against the various Federal Acts, particularly the Criminal Code of Canada, Provincial Statutes, and some Municipal bylaws. · Community Policing: -Team members work closely with public committees to identify and resolve neighbourhood concerns and criminal activity. · Traffic: -Responsible for the investigation of traffic accidents and the enforcement of the Motor Vehicle Act, many provisions of the Criminal Code, and various other Provincial Acts. · General Investigation: -Responsible for investigation of all serious crimes and sex, fraud and property offences that require extensive investigation which are beyond the resources of the General Duty section. · The other sections and units are: Administration Bike Unit Drugs Exhibits Forensic Identification Police Dog Records School Liaison Strike Force Telecoms Victim Services The Detachment is responsible for policing the communities of Maple Ridge and Pitt Meadows. Maple Ridge currently has contracted 72 RCMP member position, Pitt Meadows has contracted 18 RCMP members, the Provincial Government provides for three positions, and the Federal Government provides for one position. The total detachment complement is 94 members. As well, there are 24 full-time municipal employees who provide support in clerical and administrative duties such as Telecoms, exhibits, guarding, customer services, records management, Canadian Police Information Centre, and volunteer coordination as well as approx. 40 trained and supporting on-call resources. Awards & Accomplishments Annual Report 2003 – District of Maple Ridge 20 2003 Awards: The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Canadian Award for Financial Reporting to the Corporation of the District of Maple Ridge for our annual financial report for the fiscal year ended December 31, 2002. The Canadian Award for Financial Reporting program was established to encourage municipal governments throughout Canada to publish high quality financial reports and to provide peer recognition and technical guidance for officials preparing these reports. In order to be awarded a Canadian Award for Financial Reporting, a government unit must publish an easily readable and efficiently organized annual financial report, whose contents conform to program standards. Such reports should go beyond the minimum requirements of generally accepted accounting principles and demonstrate an effort to clearly communicate the municipal government’s financial picture, enhance an understanding of financial reporting by municipal government’s and address user needs. A Canadian Award for Financial Reporting is valid for a period of one year only. We believe our current report continues to conform to the Canadian Award for Financial Reporting program requirements, and we are submitting it to GFOA. The award we received for our 2002 Annual Financial Report was the 13th time we have received the award. In 2003 we were the recipients of our seventh consecutive GFOA Award for Outstanding Achievement in Popular Annual Financial Reporting. In order to receive this award, a govern ment unit must publish a Popular Annual Financial Report whose contents conform to program standards creativity, presentation, understandability, and reader appeal. The Communications & Human Resources Department held a very successful fund-raising endeavour for the District raising a total of $23,141 and receiving the Gold award from the United Way. For the second consecutive year, Maple Ridge achieved a 5-Bloom rating in the Communities in Bloom National Competition and was awarded a special mention for our Landscaped Areas. This award acknowledges citizens from the private, municipal, and corporate sector (including all forms of local businesses) and their involvement in various community projects. On a lighter note, volunteers from CUPE 622 with the District of Maple Ridge entered floats in the annual Maple Ridge Santa Claus Parade. Their efforts netted first prizes for the 'Overall Crowd Favourite’ and 'Best Mascot' (The Grinch and Yo-Yo). 2003 Accomplishments: A Performance Report is submitted quarterly to Council that informs the public of the attainment of specific goals and provides performance measures that were a part of the Business Plan. The report summarizes a wide variety of endeavours and achievements that are of a cost-saving nature, earn additional revenue, provide exceptional service or contribute to the social or economic fabric of Maple Ridge. The fourth quarter report was presented on February 24, 2004 and in addition, provided a summary of 2003 accomplishments. Awards & Accomplishments Annual Report 2003 – District of Maple Ridge 21 As part of our ongoing attempts to increase RCMP efficiency levels, we are always trying to ensure we have police officers doing work that requires a police officer to do it. A Municipal employee can handle other responsibilities that don’t require a police officer. The service of legal documents such as subpoenas and summonses have traditionally been handled by the police. We have had our front counter staff of the Detachment, the Pitt Meadows Community Policing Office Coordinator, and our Court Liaison Officer appointed as Supernumerary Special Constables under the Police Act of British Columbia. This appointment makes them peace officers for the purpose of serving documents within the confines of the Detachment or CPO. Therefore, if the designated recipient for the legal document is able to attend the office, we are able to have a Municipal employee who is a peace officer serve the document and complete all of the required affidavits of service. Our Court Liaison Officer is involved in the processing of the reports to Crown Counsel. These documents are the Report to Crown that outlines the investigation in support of a charge being laid. The Court Liaison Officer also swears the charge in order to initiate the legal process. The new Fire Department management software system was installed. Two one-week training sessions were held for program administrators, Howard Exner, Rondi Melanson, and Connie Hol. The Personnel, Incident, Training, Properties, and Permit modules have been developed. Incident module training was provided for the Officers and firefighters and all three halls are entering emergency incident data. The program began to generate pay and department statistics in April 2003. The Master Planning Committee presented a draft of the Fire Department Master Plan to Council at an open Council/Staff workshop in December. The Committee examined current core services and response levels. They then explored core service recommendations and response levels from outside agencies. In comparing these recommendations with the current level of service, a service level gap analysis was prepared. The document represents almost a year in the making and well over 1,000 person hours. The Plan was presented to Council for approval in January 2004. Changes were made to the existing fireworks vendor permit restricting the sale and use of bottle rockets, screechers, and roman candles, which resulted in less calls for service and property damage. The fireworks vendor permit fee will increase in 2004 and the sale of fireworks will be restricted to permanent structures only. Maple Ridge Council adopted a comprehensive fire sprinkler bylaw that requires new homes to be equipped with a basic fire suppression system, designed to stop an accidental fire from becoming a life-threatening event. This life safety initiative, will ensure the District continues to develop into a Fire Safe Community. The Department was able to provide services to the Interior when the Province declared a state of emergency due to the forest fire situations in the Kamloops, Cranbrook, Penticton, and Kelowna areas. Two fire trucks; Pumper 1-2 and Tanker 1-5; and a crew of 10 firefighters was out of town for 34 days during August and September 2003. A total of four Assistant Chiefs, 18 Captains, 72 firefighters rotated crews every 3-5 days totaling over 8,000 man-hours. During this time the Department was able to maintain service levels for the community. The Premier of British Columbia presented the department with a framed photo and the following quote: “On behalf of the people of British Columbia, thank you for your contribution, your sacrifice and your dedication – by helping out fellow British Columbians and protecting our public safety. We are grateful. You have made us all proud.” Premier Gordon Campbell. The Public Education program was able to provide fire & life safety education through the school program and community groups to over 3,300 children and 1,000 adults in 2003. The firefighters were at several public relations events throughout the year including Hot Summer Nights, Mountain Festival Parade, Pitt Meadows Day Parade, Santa Claus Parade, Fire Hall Open Houses, and the Kid Zone at the Maple Ridge Home Show. The Charities Committee organized a large scale “Head Shave for Cancer” involving all of the emergency services in Maple Ridge and Pitt Meadows. This event took place at the Maple Ridge Home Show May 2-4, 2003. Over $23,000 was raised with 80% of the funds benefiting the Awards & Accomplishments Annual Report 2003 – District of Maple Ridge 22 local oncology unit at Ridge-Meadows Hospital and the remainder went to research purposes through the B.C. Cancer Foundation. The Committee also held the second annual fundraising car wash on July 26 raising $4,120 for the Burn Unit of Children’s Hospital. In October the Charities Committee conducted their Boot Drive for Muscular Dystrophy raising $3,580 and in December they held the Food Drive in which the firefighters collected 10,000 pounds of food and $13,700. Completion of Standard Training continued throughout the year. Public Education and Sprinkler Devices and Hazardous Materials Awareness and Operation modules were completed by yearend. Approx. 50 members received Firefighter I/II certificates in January 2004. These JIBC Fire Academy certificates will be IFSAC endorsed. The Canadian Council of the Blind, Ridge Meadows Chapter expressed their appreciation for the tactile and colour changes to the crosswalks at the intersection of 224th Street and Dewdney Trunk Road. Working with the Accessibility Committee, the Public Works and Development Services Group installed or improved 32 sidewalk letdowns throughout the Municipality. Major improvements in the security of our information technology information and practices have occurred in the last year. This coincided with the implementation of the first two Internet based service offerings to the citizens of Maple Ridge. The first of these services is recreg4u which allows registration for Parks & Leisure Services facilities or activities using the District website, and the second was Ridgeview, a website based interactive mapping system. The Arts Centre & Theatre successfully completed the $2M fundraising campaign to equip the facility. The Theatre was ceremoniously opened on May 17, 2003 with Her Honour, The Honourable Iona Campagnolo, PC, CM, OBC, Lieutenant Governor of British Columbia. The Leisure Centre enjoyed its most successful year of operation with general admissions up by 15% over 2002. There were 317,607 admissions while user hours rose to 568,304. Increases were also significant in corporate fitness, swim lessons, aerobics, and child minding. The Sunday “Loonie/Toonie Swim” and the wheelchair sports program in the Leisure Centre gymnasium remain popular activities. The Maple Ridge, Pitt Meadows, and Katzie Building Community Solutions project continued with support from the Recreation Department. A pilot project was launched with the introduction of “Neighbourhood Study Circles”. Approximately 150 people took part in a facilitated process in 15 different “neighbourhood circles” at different schools throughout the communities. Participants discussed their visions for their neighbourhoods and for their community, they discussed their concerns and developed action strategies to strengthen their neighbourhoods and improve their quality of life. The Study Circles received overwhelming positive feedback as an excellent process for engaging the community and building community capacity. Developing and sustaining the Study Circles will be the focus on the next phase of this project. Youth Services continued to experience an increase in the number and diversity of youth attending programs and drop-in youth centers. In December, a new pilot program initiative was launched in partnership with the School District Anti-Vandalism project. A late night youth dropin program at Westview High School was introduced with United Way and Youth Centre Society contributing funding. The program is aimed at building relationships and involving youth in positive activities. The program will be evaluated to determine its effectiveness at reducing vandalism. Also, in partnership with the School District, a second After School Recreation program was introduced at Eric Langton following the Yennadon program introduced in 2001. The program is aimed at providing a positive, healthy, active opportunity in the school for children between the after school and parents returning from work time frame. Summary of Services & Regional Relationships Annual Report 2003 – District of Maple Ridge 23 The Corporation of the District of Maple Ridge is the sixth oldest and eleventh largest (by land size) of the 149 municipalities in British Columbia. It is responsible for the provision of a wide variety of local government services. These include: · Building Permits · Business Licensing · Bylaw Establishment and Enforcement · Domestic Animal Control · Drainage · Emergency Preparedness · Heritage · Land Use Planning · Library Facilities · Parks, except for Golden Ears Park, which is a Provincial Government responsibility, and Kanaka Creek Regional Park, which is a Greater Vancouver Regional District responsibility. · Police and Fire Protection · Public Transit · Recreation & Cultural Facilities and Programs · Sanitary Sewer Collection System · Transportation network (roads, bridges, street cleaning, sidewalks, street lighting, etc. – except portions of the Lougheed Highway [#7] which fall under Provincial Government responsibility) · Waterworks Distribution System Typical local government services that are not an assumed responsibility of the Corporation of the District of Maple Ridge include: · Debt Marketing (Municipal Finance Authority) · Employee Pension Plan (Provincial Plan) · Flood Control (Provincial Government and Local Dyking Districts) · Garbage Collection (Private Operation) · Hospital Care Systems (Provincial Government) · Library Collection and Distribution System (Fraser Valley Regional Library) · Real Property Assessments (Provincial Government) · Sanitary Landfill (Greater Vancouver Sewerage and Drainage District) · School System (Provincial Government and Local School Board) · Sewage Treatment (Greater Vancouver Sewerage and Drainage District) · Social and Health Programs (Provincial Government) · Water Collection and Purification (Greater Vancouver Water District) The Corporation of the District of Maple Ridge is represented on the following Regional Boards, which provide a variety of services for the residents of Maple Ridge. · Fraser Valley Regional Library (FVRL) – A regionalized library collection and distribution system that provides all of the operational aspects of a library system. The members must provide the local facilities. · Greater Vancouver Regional District (GVRD) – Provides air quality management, transportation planning, regional housing, regional parks (their Kanaka Creek estuary and linear park is located within the Maple Ridge boundaries), labour relations for local government employees, and administration of the 9-1-1 emergency telephone system. · Greater Vancouver Sewerage and Drainage District (GVS & DD) – Provides sewerage transfer and treatment on a regional basis, and the disposal of solid waste. · Greater Vancouver Transportation Authority/TransLink (GVTA) – Responsible for the integration of transit and road networking with regard to transportation and land use. TransLink is headed by local governments, allowing the decision-making to focus on local concerns. · Greater Vancouver Water District (GVWD) – Responsible for acquiring the water, maintaining the supply, ensuring its quality, and delivering it to the member municipalities for distribution by local systems. Summary of Services & Regional Relationships Annual Report 2003 – District of Maple Ridge 24 The Corporation of the District of Maple Ridge obtains services from the following intermunicipal organizations: · B. C. Assessment Authority – The mandate of BC Assessment is to establish and maintain an independent, uniform, and efficient real-property assessment system throughout British Columbia in accordance with the Assessment Act. The Act requires that BC Assessment produce annual rolls with assessments at market value. · B. C. Society for the Prevention of Cruelty to Animals (BCSPCA) – Contract to provide domestic animal pound and shelter and to operate a large animal pound as required. · B. C. Transit Authority – The Municipal Systems Program is provided through a partnership between BC Transit, local government, and a transit management company. BC Transit is responsible for the provision of funding, vehicles, professional planning, marketing services, contract administration, service audits, and financial accounting. The Municipality shares in the funding responsibilities, approves all service plans and tariffs, accounts for revenue, and maintains all transit facilities (such as bus stops, exchanges, shelters, and benches). The Operating company is responsible for the employment of drivers and mechanics, and the operation of the service approved by the municipality · Municipal Finance Authority (MFA) – A provincial organization that provides for marketing, placement, and administration of all Municipal debt requirements (except the City of Vancouver). This Authority also operates an investment pool on behalf of municipalities. · Municipal Insurance Association (MIA) – The Municipality is a Subscribed member of the Municipal Insurance Association of British Columbia (The “Exchange”) as provided by Section 3.02 of the Insurance Act of the Province of British Columbia. The main purpose of the Exchange is to pool the risks of liability so as to lessen the impact upon any Subscriber. Under the Reciprocal Insurance Exchange Agreement the Municipality is assessed a premium and specific deductible for its claims based on population. · Ministry of Education -Provincial Government School System (Residential and Non-Residential) – A Kindergarten to Grade 12 system that serves students in public schools and independent schools. · Royal Canadian Mounted Police (R.C.M.P.) – Contract with the Federal Government to provide police services (police officers); the Municipality provides the clerical support services and facilities. The Corporation of the District of Maple Ridge issues the property tax notices and acts as a collection agent for all property taxes. The following organizations' levies are contained on the Municipal Property Tax Notice; however, the Municipal Council does not have control or responsibility over their levy, expenditures or operation, except as a voting member: · Fraser Valley Regional Library · Greater Vancouver Regional District · Greater Vancouver Regional Hospital District Message from the Director of Finance Annual Report 2003 – District of Maple Ridge 25 I am pleased to submit our 2003 Annual Report. Included in this report are the Financial Statements of the Corporation of the District of Maple Ridge for the fiscal year ended December 31, 2003, pursuant to Section 167 of the British Columbia Community Charter. BDO DUNWOODY LLP has audited the Consolidated Financial Statements and provided an unqualified audit opinion. The Municipality is responsible for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures. This report provides users an overview of ongoing financial and operational performance. For the 13th consecutive year the District of Maple Ridge was awarded the Canadian Award for Financial Reporting for its 2002 Comprehensive Annual Financial Report. This award was established to encourage local governments throughout Canada to publish high quality financial reports. As of 2003 this document is now considered the Annual Report. The purpose of the Annual Report is to present to the users and readers a clear insight of the financial results for our fiscal year ended December 31, 2003. We strive to ensure that this report presents fairly the financial position of our Municipality. The report is divided into three sections for your convenience: · Introductory Section – Provides the reader with an overview of the political, economic and administrative context within which the Municipality operates. · Financial Section – Presents the consolidated financial statements, supporting statements, notes and schedules and the independent external auditor’s report. These statements and schedules contain comparative results for the prior year and current year approved budgets for the operating, capital and reserve sections. · Statistics Section – Presents a variety of statistical and financial information on a multi-year comparative basis. Financial Statements in the public sector are indicators of financial position. They compare how financial resources were deployed with past financial performance and budget. As of 2004, the British Columbia Community Charter requires Municipal Council to set corporate goals and to measure performance going forward. The timeline for this process is as follows: · June 2004 – publish first Annual Report which contains a statement of Council’s objectives for 2005; · January 2005 – develop and set measures in relation to the objectives set in 2004; · June 2005 – Annual Report; restate the 2005 objectives and the measures to be used to gauge performance; a statement of the 2006 objectives and performance measures; · June 2006 – Annual Report provides the first comprehensive progress report for the year 2005; restate the 2006 objectives and prepare and publish the objectives and associated measures for 2007. Council adopted its objectives in June 2004 and these goals are published within this report on pages 4 & 5. Economic Climate Rapid expansion in China, the war in Iraq and a sluggish economy in the United States impacted the economic climate in 2003. For Canada this had major effects to different regions as the economy stalled by growing only 1.7% compared to 3.3% in 2002. The major economic event was the turnaround of the Canadian dollar against the US greenback. The 21.7% increase in 2003 was the largest movement in any one year. Other events clearly illustrated that increasing global integration, especially in trade and investment, makes Canada vulnerable to situations over which we have little control. Message from the Director of Finance Annual Report 2003 – District of Maple Ridge 26 In another significant development, China became a key player in Canada’s trade with the world. With their economy growing at a blistering 7+% year over year, the demand for raw materials drove prices to new highs and rejuvenated the resource sector. Trade that had slumped for three straight years with the US was increasing with China, but so has the overall trade deficit. Low interest rates created a very buoyant real estate market and the rapid expansion of the housing construction industry has generated jobs. The spin-off effects were visible in retailing and expansion in various parts of the commercial and service sector. For the 3rd straight year household spending has shown solid growth. Some sectors, such as auto manufacturing, required significant incentives to attract buyers and therefore, margins and profitability contracted. Manufacturing overall fell significantly for the first time since 1993. However, the balance sheets of corporate Canada had significant improvement in their cash positions while consumer spending was financed through personal savings. The savings rate fell to a record low of 2% while consumers borrowed a record $50B, $30B in mortgages alone. The Canadian economy is expected to strengthen in 2004. The major risk continues to be the threat of terrorism, unsettled outcomes of the Iraq war and softening of growth in China. Economic growth is expected to accelerate to around 3% in 2004 from below 2% in 2003. This performance should bring gains in personal income and corporate profits. Although the softwood lumber dispute with the United States remained unresolved, the action taken by the forest industry in past few years is allowing companies to return to profitability. Prices for dimensional lumber, plywood and OSB hit record levels. This was, in most part driven by a strong expansion in housing in the United States. The Province also benefited from growth in oil and gas exploration and exports at record prices; this generated significant royalty revenue to the provincial coffers. Despite a year of significant economic shocks – SARS, mad cow disease, fire storms, floods, an unprecedented 21% jump in the Canadian dollar, British Columbia’s relative economic growth pulled ahead of the national average for the first time in 10 years. The GDP rose by 2.2% largely driven by a hot housing market as business investment in residential structures jumped 15%. Employment improved throughout the province and shortages continue in the tradesperson category. The Provincial Government continued to struggle with deficit in 2003, however, the three-year restructuring exercise developed in 2001 has the Province confidently projecting a modest surplus for 2004. The program undertaken to slay the deficit has required closures of hospitals, schools and other public facilities, outsourcing services, selling certain Crown Corporations and entering into Public Private Partnerships commonly referred to as 3P. The resource communities that went into an economic slump have begun to revive as immigration to the province has begun to move out from the lower mainland bringing with it economic growth. Based on other economic indicators, the province placed 3rd for the level of after-tax personal income; 7th on the employment rate ages 15-64, and poorly on business investment. BC currently has more of its population in the 65 and older cohort than Canada as a whole and a higher median age. BC’s elderly dependency ratio is expected to increase as the retirement population from other parts of Canada migrate to a warmer climate. This will place upward pressure on health care costs and specialized care facilities and therefore, a rationalization of costs and evaluation of alternative service delivery models will be critical to achieve balanced budgets in the future. The Winter Olympic Games for 2010 were awarded to Vancouver. In the next six years there will be significant capital infrastructure spending in the Greater Vancouver area and the spin off effects will ripple throughout the province. Message from the Director of Finance Annual Report 2003 – District of Maple Ridge 27 The provincial population, as a whole, continues to grow. Based on the latest census of 1996 – 2001 the population as a whole has grown by 5% to 4 million. Maple Ridge has been a recipient of that growth trend as the population has increased by 40% from 50,800 in 1982 to an estimated 71,400 in 2003. Maple Ridge Population 0 10 20 30 40 50 60 70 1999 2000 2001 2002 2003 ($ Thousands) Maple Ridge has become an area of choice for builders, developers, and buyers. There is a sufficient inventory of building sites and there is a demand for housing by families of all ages and types. There were 473 single family dwellings started in 2003 compared to 609 in 2002 and building permit construction value hit $113.3M compared to $126.6M in 2002. Although the numbers are down in comparison, the surging pace continues in 2004. Maple Ridge Construction Value 0 20 40 60 80 100 120 140 1999 2000 2001 2002 2003 ($ Millions) In the March 2003 Strategic Plan Community Survey, residents responded that, in general, they satisfied with the quality of life in Maple Ridge. Quality of Life Survey 1%2%6% 37% 52% 0% 10% 20% 30% 40% 50% 60% Very dissatisfied Don't know Neither satisfied nor dissatisfied Somewhat dissatisfied Somewhat satisfied Very satisfied Economic Indicators · Gross Domestic Product for the Province grew by 2.2% in 2003; this compares to 1.8% in 2002 and 1.7% in 2003 for the country as a whole. · British Columbia Consumer Price Index (CPI) increase in 2003 was 2.1%; for the Greater Vancouver area CPI increased by 2.0% as compared to an increase in 2002 of 2.2%. The 2003 Canadian CPI increase was 2.8%. · Unemployment in the Greater Vancouver area was 7.3% in 2003 compared to 8.1% in 2002; for the province as a whole the unemployment rate was 8.1% in 2003 while in Canada the rate was 7.6%. · Housing starts for the province were 26,174; this represents a 21% increase over 2002. · In the Greater Vancouver Regional District housing starts in 2003 were 15,626 compared to 14,435 in 2002 representing an increase of 1191 or 8.5%. · Maple Ridge construction value was $113.3M; this compares to $126.6M in 2002 and $83.9M in 2001. · Single family dwelling starts in Maple Ridge were 473 units compared to 609 units in 2002. · Multi-family dwelling units created in Maple Ridge were 25 units compared to 155 units in 2002 and 6 units in 2001. Message from the Director of Finance Annual Report 2003 – District of Maple Ridge 28 · Assessment values in 2003 for Maple Ridge increased by $633M or 13.4% to $5.3B. For the 2004 taxation year the assessment values increased to $6.1B representing an increase of $722M or 13.5%; this represents a real growth increase of 2.7% and a market increase of 10.8%. Ten Year Assessment Valuation 01234567 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 ($ Billion) The local economy has enjoyed a mini-boom due to the buoyant housing and development market of the past 30 months and is reflective of overall growth and development in the Greater Vancouver area. However, global, national and provincial events were not lost on the local economy. The softwood lumber dispute, falling interest rates, a volatile currency, increases in energy costs and less than robust in economic activity in the United States have had an impact on businesses in our community and the Municipality’s bottom line. Risk Mitigation a) Property and Casualty Risk The Municipality’s operations are insured under an insurance program. The program is a combination of purchased insurance, membership in an insurance reciprocal arrangement and risk retention through the use of self-funded insurance reserves. The Insurance Reserve Account funds claims in excess of $1,000 up to the policy deductible. The escalating cost of insurance premiums has necessitated an increase in the deductible portion of the insurance policy and a pro-active approach to risk management. In 2003 the contribution to the Insurance Reserve Account was increased on a one-time basis with a more in-depth review slated for 2004. The Municipality has joined with other members of the insurance reciprocal to lobby the province to pass legislation that would limit liability claims in certain categories where local governments do not control the source legislation such as building codes. b) Public Safety As a result of past Council budget decisions, the compliment of officers at the local RCMP detachment resource had not kept pace with community growth or the demand for service from community residents. Council addressed this in 2002 by phasing in a program that provided additional resources. The Financial Plan for the period 2004 – 2008 does not include an increase of police officers during a period when the population is expected to grow significantly. The Fire Department has presented a Fire Department Master Plan that sets out the current and future needs for the community for fire personnel, new fire stations, equipment and training. The plan has received Council and community support. Moving forward on the Plan will become a focal point in the 2005 – 2009 Business and Financial Planning sessions in November 2004. The Municipality has an Emergency Preparedness Plan in place and the Emergency Operation Centre has been activated at different times to respond to occurrences. The Justice Institute of BC has provided training to members in the key areas of Emergency Management Training. c) Disaster Recovery The District of Maple Ridge has a disaster recovery plan in order to ensure key services continue in the event of a tragedy. It was identified in the Auditor’s Management Letter that this plan needs review and a formalized process that is documented and adopted by management and Council. Message from the Director of Finance Annual Report 2003 – District of Maple Ridge 29 The District does not disagree with the commentary and has made provision in the 2005 portion of the 2004 – 2008 Financial Plan for the IT Disaster Recovery Plan. d) Cash Management The Dsitrict has a published Investment Policy and documented internal control procedures for the management of cash and investments. While the internal control procedures are designed to ensure the handling of cash is managed in a secure methodology, the cash management and investment policy strives to optimize the utilization of cash resources in an efficient and cost effective fashion. The Municipality seeks to achieve a high level of return while preserving capital. Investments are limited to instruments in which the principal is unconditionally guaranteed. Investment performance is benchmarked against specific, highly recognized indices and reported directly to the Audit and Finance Committee on a regular basis. e) Contingencies We accrue a potential loss if we believe the loss is probable and it can be reasonably estimated. We base our decision on information we believe to be reliable at the time. We estimate the amount of the loss by consulting with outside legal counsel. If the final resolution results in a judgement against us or requires us to pay a large settlement that could have a negative effect on our operational results, cash flow or financial position, we will charge this against operations and record a liability. If there is a cash settlement in the period, it would be included in cash from operating activities. The District has contingent liabilities with regards to being a member of the Greater Vancouver regional water and sewer system, the Municipal Finance Authority and Municipal Insurance Association. These have been recorded in a note to the financial statements in each of the past two years (see page 56 note 10). The District has contractual obligations under cost sharing agreements with Greater Vancouver Water District and the Greater Vancouver Sewer & Drainage District for annual payments for utility infrastructure (see page 56 note). In addition, in 1999 the District entered into an agreement with a private company for the provision of a new ice rink in the community. Under the arrangement the District is obligated to purchase ice time for a period of five years with a five –year renewal option (see page 56 note 10). Financial Review – Overview The Consolidated Financial Statements are a requirement of the British Columbia Community Charter Section 167. The Municipality prepares its financial statements in accordance with Canadian generally accepted accounting principles. The Consolidated Financial Statements include the operations of the General, Water, Sewer, Capital and Reserves Funds, and the Municipality’s wholly owned development company C.D.M.R. Developments Ltd. They have been prepared using recommendations issued by the Public Sector Accounting Board of the Canadian Institute of Chartered Accountants. The following discussion and analysis of the District of Maple Ridge financial performance provides an overview of the District’s financial activities and position for the fiscal year ended December 31, 2003. It is supplementary information to the financial statements, therefore, this discussion and analysis should be read in conjunction with the consolidated financial statements, accompanying notes, and supporting schedules. Financial statements in the public sector serve as a central feature of local government financial reporting and assessing the management of public financial affairs and resources. They report a local government’s actual financial activities in comparison to planned activities and the resulting financial condition of the local government. They are not intended to replace a variety of other financial reports used in planning, analysis and decision making. Nor are they intended to be the sole measure of government performance in the period; but rather, present financial information that is useful in evaluating the local government’s financial condition at the end of the accounting period and its financial performance during the accounting period. Message from the Director of Finance Annual Report 2003 – District of Maple Ridge 30 The Business and Financial Planning Process: The Municipality aligns values, policies, practices and strategies through the document called Business Planning Guidelines; for the period 2003 – 2007 it was the 7th edition. The business planning process is a structured method of assisting Council with the difficult task of resource allocation. The business plans communicate each department’s alignment with the corporate strategic plan and identify: · Goals and objectives to be achieved by the department and the organization · Essential core business and service levels · How resources will be distributed (financial and human) · Performance Measures · Capital program with the associated operating costs · Potential new revenue sources · Incremental spending programs Quarterly performance reports are presented at open Council Meetings. Progress in relation to the strategic direction is evaluated every six months. Business Plans and budget review sessions are all open to the public. There are scheduled opportunities for the public to question Council on decisions or to make submission on all programs. Strategic Plan Business Decisions The Five Year Consolidated Financial Plan incorporated a 4% tax increase for 2003 – 2005, 3.75% for 2006 and 3.50% for 2007. As part of the Business Planning Process, Council made key decisions in terms of service levels and revenue sources: · Utility & user fee structure adjustments to respond to the rising costs for purchased water and payment for treating sewage. All other service costs are increased to reflect inflation. · Service levels to remain the same overall except in areas identified by Council in response to growth. These include protective services, social planning and customer service. · Public input sought on the Corporate Strategic Plan and service levels. · Performance measures/indicators required from each service area. · Quarterly Reports to Council to measure our performance. · Quarterly financial performance to be reviewed by the Audit and Finance Committee. · Capital expenditure requests to include operating budgets and replacement strategy. The amount available for capital expenditures from general taxation is frozen at historical levels for the immediate future. · Economic development start-up through the creation of an independent department and roll out of an Economic Development Strategy. · Development of a Fire Department Master Plan. Through a deliberate review of the capital expenditure and development program, Council is aware of the challenge represented by infrastructure sustainability and the building of new facilities to meet the demand from growth. As a community of the Greater Vancouver region, Council is also very aware of regional transportation matters and the challenges faced by the Greater Vancouver Transportation Authority in raising the necessary financing for major transportation initiatives. The Municipality is a leader in using a Business Planning model to provide the framework for decision-making by identifying areas for performance review, restructuring, change, dissolution and alternate service delivery. This is the basis from which the Consolidated Five Year Financial Plan is developed. The Five Year Forecast: The British Columbia Community Charter requires the District to adopt a Five Year Consolidated Financial Plan. Although we have always carefully planned our capital program over a 10 to 20-year horizon, we limit our other forecasts to the five year period. This projection or forecast is our best estimate of economic factors that influence Message from the Director of Finance Annual Report 2003 – District of Maple Ridge 31 our budget decisions. A multi-year approach provides Council and the community the opportunity to consider future financial impacts as a result of current decisions. This process is even more critical when the economic factors discussed previously are considered in today’s climate of volatility and adjustment. Growth of Maple Ridge is a certainty and this is reflected in the financial plan. Although there are more taxpayers to absorb costs, there is an increased demand for services that must be balanced with the new revenue streams and future financial sustainability. All areas that are related to growth such as infrastructure (transportation, facilities, and parks), social services, protective services, arts & culture and environmental protection become cost drivers. Replacement of these assets is also part of the decision making, but for the moment, only a few areas have a plan in place. The following assumptions are reflected in the 2003 -2007 Five Year Consolidated Financial Plan: · continuing real growth that averages 2.75% per year; · tax increases structured over the period; · significant increases in utility service costs as a result of capital and safety improved at the regional levels; · operating inflationary pressure; · continued low interest rate environment; · succession planning; · non-facility related growth such as open space, roads, bike paths etc. continue to place pressure on operating programs; · increases to protective services to cope with a rapidly growing community; · limited financial resources as costs from the Town Centre Development are absorbed; · use of Local Improvement recovery schemes to provide upgrades to parts of the community; The District has taken positive steps to resolve the issues related to the Town Centre Development. As a result of the court challenge by a citizen with regard to the business arrangement with the developer and the court ruling that the District breached its authority, negotiations continue for the purchase/sale of the entire development. The District has engaged professional negotiators to act on behalf of the municipality. The financial plan has also made substantive increases for improving resources in Protective Services. In the latter case it is a catch-up from “flatlining” this area over the past five years. With the population projected to grow significantly over the next five years it will be necessary to consider the following: · infrastructure, facility and building maintenance and replacement · protective services resources and improvements · community service levels · alternative service delivery models · technology upgrading · succession planning · demographics The External Audit: Included in the Financial Statements is a report prepared by the external auditor BDO Dunwoody LLP. The role of the external auditor is to present an independent opinion on the fair presentation of the District’s financial position and operating results as contained in the Financial Report, and confirming that the financial statements are free from any material misstatements. The auditor is responsible for advising management and the Audit and Finance Committee of any control or operational matters that may have been identified during the audit procedure. The Audit and Finance Committee is a special committee selected by Council to manage the financial and business affairs of the Municipality. The Committee operates under adopted Terms of Reference. In accordance with the Terms of Reference, Council appoints three councillors; the mayor is a member ex-officio. Meetings are open to the public except for those items deemed to be “in camera” and Council must, by resolution, receive the minutes from the committee meetings. Message from the Director of Finance Annual Report 2003 – District of Maple Ridge 32 The Committee is responsible for appointing/dismissing the external auditor, reviewing the terms of engagement, fees and scope of the audit and any non-audit services contracted, and evaluating the performance of the auditor. The Committee also reviews any reports, the Management Letter and reports and financial statements of the wholly owned company C.D.M.R. Developments Ltd. The Committee has the authority to request from management or the Director of Finance specific reports or analysis. It is authorized to request the presence of other staff to report or answer questions on financial matters. The Financial Statements: The information in this Annual Report is the responsibility of management. BDO Dunwoody LLP, the Municipality’s independent auditors have audited the accompanying financial statements and their report accompanies the financial statements. Council carries out its responsibility for the Consolidated Financial Statements primarily through its Audit and Finance Committee. The Consolidated Financial Statements are reviewed and approved by the Audit and Finance Committee. Throughout the year this committee receives monthly operating statements and reviews quarterly consolidated operating reports beginning after the 2nd. quarter. In addition, the committee meets periodically with the external auditor and management to discuss the auditor’s Management Letter, scope and timing of the annual audit and to determine whether specific findings or other related matters need further investigation or audit. 2003 Consolidated Financial Statements: Overall, the financial results for 2003 are favourable as compared to budget and prior year (detailed discussion follows). · Net Financial Assets increased to $9.92M from $5.06M · Excess of Revenue over Expenditures was $4.85M compared to a planned deficit of $3.49M or a variance of $8.34M; compared to 2002 Excess of Expenditure over Revenue of $7.69M; the difference is a positive of $12.54M. · Cash Position improved by $1.2M; Cash & Investments improved by $7.8M Operating Expenditures were under budget by $0.92M while Capital Expenditures were under budget by $24.58M; on a consolidated basis, expenditures were $63.5M compared to a budget of $89.1M for a variance of $25.6M 1. Statement A Consolidated Financial Position – Page 47 This statement reports the financial assets and liabilities of the Municipality. The difference between the financial assets and total liabilities is the Net Financial Assets if positive and Net Debt if negative. This figure provides the Municipality with an indicator of financial flexibility and of future revenue requirements to finance activities and meet financial commitments. In 2003 the Net Financial Assets increased by $4.85M to $9.92M. Total restricted revenue of $24M is mostly a result of capital works not being completed as scheduled in the budget. If all the projects had been completed as budgeted in 2003 our cash position and restricted revenues would have declined. There would have been no effect on Net Financial Assets because both the cash balance and the liability would have been reduced equally. The liability for the Town Centre did not increase this year because the developer supplied portion of the downtown was completed in 2002. The balance of the Financed Capital Construction reflects a small reduction as it is considered the principal portion of the lease; most of the payment is classified as interest. As discussed in "Reserves" below there were a number of capital projects intended for completion by December 31, 2003; these projects would have been funded by reserves. The completion of these projects by December 31 would have decreased cash and therefore Net Financial Assets would have also been reduced. Message from the Director of Finance Annual Report 2003 – District of Maple Ridge 33 2. Statement B Statement of Financial Activities – Page 48 This statement reports the extent to which revenues raised in 2003 were sufficient to meet expenditures in 2003. It shows whether the Municipality has met its expenditures with revenues, by incurring liabilities or by drawing on existing financial assets. The consolidated financial activities for 2003 reflect a continuation of the trends over past years and that relate to capital expenditures being deferred to the future. Council is apprised of the deferrals. The Excess of Revenue differed by $8.34M as compared to the 2003 Consolidated Budget and differed by $12.5M as compared to 2002. These results, although favourable, reflect budgeted activities not completed. A general analysis of the 2003 variances with both the previous year actuals (2002) and the current year budget (2003) is provided below. i) Consolidated Revenue (Statement B) -compared to previous year 2002 – Page 48 · taxation revenue was increased by $2M by a combination of higher tax rates and growth of the tax roll. · user fees and other revenues were increased by about $1.5M due to: (a) assistance provided to provincial firefighters (b) increase in the volume of recreation fees (c) increase in the volume of utility connections (d) various increases in other fees and charges (e) increase in development type fees and permits (f) increase in investment revenue · there were few increased costs associated with the fees earned while assisting provincial firefighters · increased demand for leisure services at the new leisure centre increased operating costs; this absorbed the increased earned revenues generated from recreation fees · Utility user fees increased due to a combination of higher rates and growth in the number of users · Utility grants were down because the debts for which grants are received are being paid down · Capital grants were reduced because a large part of the 2002 total was for the Arts Centre, which was completed in 2002 · as in 2002, most of the proceeds from disposal of assets came from the sale of nonmunicipally owned housing units in the ECRA complex under the 1999 agreement. These proceeds will cease now that virtually all the units have been sold ii) Consolidated Revenue (Statement B) -compared to budget – Page 48 As in previous years there were large variances between budget and actual and, as in previous years, a large part of this difference was related to the capital program. Development fees (earned DCC's) and Capital grants were budgeted based on the expected completion of capital projects. As the capital expenditures did not occur there was no corresponding funding available. This condition alone accounted for a variance of about $17M. In addition to the diminished capital program the sale of property of $5M did not occur. Partially offsetting these reductions were higher than expected fees and charges of $2M, increased interest income, unbudgeted receipts from refinancing, and the unbudgeted sale of ECRA units totaling another $2M. iii) Consolidated Expenditures (Statement B) -compared to previous year (2002) and budget (2003) – Page 48 In general the consolidated expenditures were quite consistent with prior years with the exception of recreation capital expenditure which was much higher in 2002 due to the completion of the Arts Centre. As compared with budget, the consolidated expenditures were significantly below budget due to uncompleted capital activities. An Message from the Director of Finance Annual Report 2003 – District of Maple Ridge 34 analysis of operating and capital expenditures is provided below. Note: A detailed comparison is provided on Schedule 8, page 76 & 77. 3. Statement C Statement of Change in Cash and Temporary Investments – Page 49 This statement represents financial resources (cash and investments of less than one year) that are available in the short term to satisfy debt obligations and expenditures. The change in cash and short-term investments is linked to, but is not identical with, the excess of revenue over expenditures. An example is when cash is received for a refundable deposit; in this case cash is increased but revenue is not. In 2003 the major contributors to cash were: · excess of revenue over expenditure $4.9M · development fee deposits $3.2M. The main application of cash were to acquire longterm investments $7M. 4. i) Statement 1 Operating Expenditures -compared with previous year (2002) – Page 59 With a couple of exceptions most areas increased less than 5% from last year. Two exceptions were: (a) Protective services (6%) due to a combination of increased staffing of RCMP officers, providing fire-fighting assistance to out of town communities hit but major forest fires, increased emergency response to accidents and, additional by-law enforcement. (b) Recreation and cultural (13%) due mainly to increased interest cost and increased grants for the Arts Centre and increased recreation program costs as a result of demand. ii) Statement 1 Operating Expenditures -compared with budget (2003) – Page 59 Operating expenditures were a bit more variable with respect to budget and in most cases the expenditures were below budget. (a) Protective services were lower because RCMP staffing was not up to full compliment in 2003 (b) General government results, although very similar to the prior year actual, were considerably under budget in many areas including administration, finance, computer operations, and miscellaneous (government studies). (see Schedule 10 page 79) Recreation operating expenditures were over budget mainly in programs (increased demand) and in administration (insurance, building maintenance); there was some offset to the increase with increased program revenues (see Schedule 13 page 82 & 83). 5. i) Statement 2 Capital Expenditures -compared with previous year (2002) – Page 60 Given the inherent variability of capital expenditures they were (excluding contributed infrastructure) fairly similar to 2002. The notable exception being Recreation and cultural which showed much higher amounts in 2002 because of the construction of the Arts Centre. ii) Statement 2 Capital Expenditures -compared with budget (2003) – Page 60 There were significant variances ($25M) between budgeted capital expenditure and actual (see Schedule 8 page 70 & 71); a similar condition also existed in 2002. Some of the main areas in which the expenditures either did not occur or have only had small startup costs are: (a) Protective Services: fire halls and fire equipment $1M. (b) Transportation Services: 232nd St. bridge $3M; Albion Industrial Park crossing $1.1M; drainage projects $1.3M; and various roadwork projects $4.8M. (c) Recreation and Cultural Services: East Cottonwood Park $2M; Albion Secondary Play Field $1.6M; other park acquisitions and development $3.7M and various core items $1.7M. (d) Utilities -various projects $3.7M. (e) General Government: various technology projects $1M. Message from the Director of Finance Annual Report 2003 – District of Maple Ridge 35 6. 2003 Other Fund Balances: a) Capital Fund. (Statement 2) – Page 60 This fund is in a deficiency position because permanent funding has not yet been received for the Art Centre furnishings and equipment of $1.7M. The funding source for a sewer project of $1M has not been recorded. In the interim, carrying costs are borne by the General Revenue and Sewer Revenue funds respectively. These amounts therefore, represent an encumbrance of either the operating or the reserve fund balances depending on which source is designated to absorb the cost. Had the funds been received operating and/or reserve balances would have decreased by ($2.7M) and the capital fund deficiency would have been eliminated. There would have been no affect on Net Financial Assets because no amount was due from or due to outsiders in relation to these items. b) Reserves (Statement 3) – Page 61 Reserve Funds are permitted by statute and are usually restricted for capital purposes. A Reserve Fund is established through Council bylaw and segregates assets for the fund. Reserve Accounts are distinguished in the way they are created. Reserve Accounts are appropriations of surplus established by management and generally associated with the operating program. Interest is earned by the Reserve Funds while interest is allocated to Reserve Accounts where deemed appropriate by policy. The Municipality has set aside and managed by corporate policy Reserve Accounts and Reserve Funds for over 30 years. It is these reserves that have enabled the Municipality to maintain a positive net financial position even though having incurred a significant liability of $30.5M for the capital expenditures related to the Town Centre Development. There was $30M in various reserves at year-end however, much of that amount is related to deferred capital projects, as discussed previously. If these projects had been completed per the budget, the reserve balances and net financial assets would have been reduced as previously written above. As at December 31, 2003 the Reserves (page 61) were $29.9M, an increase of $3.9M from $26.0M in 2002. Interest earned was $763K compared to $669K in 2002. Reserves paid for $4.2M of capital expenditures; notable were $2.3M for various public service projects; $.8M for utility improvements and $1.6M for equipment replacement. b) Restricted Revenues (Statement A & Schedule 7)– Page 47 & 74, 75 These are receipts received in advance of expenditures and are restricted either by statute or by agreement with external parties. When the actual expenditures are incurred the restricted revenues are brought forward as revenue. The components are Development Cost Charges, Parkland Acquisition, Downtown Parking and Developer Specified Projects. The balance as at December 31, 2003 is $24.2M compared to $21.0M in 2002. The main component at 82% is Development Cost Charges at $19.8M compared to $17.1M in 2002. Collections of Development Cost Charges in 2003 were $3.4M compared to $5.4M in 2002; expenditures were $1.2M and interest earned was $.5M. Assessment of Trends As shown on the chart below, Net Financial Assets have declined from $25.6M in 1999 to $9.9M in 2003. In this five-year cycle Net Financial Assets bottomed at $5.1M in 2002 Based on the current Financial Plan of 2004 – 2008, and as shown on the chart below, the financial position will turn negative in 2004. The financial position projects a Net Debt of $.5M in 2004, $2.2M in 2005, $2.7M in 2006 and turns positive with Net Financial Assets of $1.1M in 2007 and $3.5 in 2008. These projections are based, however, on a projection that all capital expenditures previously deferred will be completed. Message from the Director of Finance Annual Report 2003 – District of Maple Ridge 36 Financial Position -505 10 15 20 25 30 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Actual Projected ($ Millions) The shift from a position of Net Financial Assets of $25.6M in 1999 to a Net Debt position in 2004 -2006 is in large part due to the expenditures for the Town Centre Development. This projection is based on the May 15, 2004 Adopted Financial Plan. Since May 15, 2004 the District has negotiated the acquisition of the Town Centre Development including the Business Tower. The Net Debt position is projected to increase and prevail from 2004 -2009, however, at the time of writing this report the Net Debt position is not quantifiable. The accompanying chart illustrates the comparative expenditures for the five functional units of the Municipality. For the purpose of understanding, expenditures include operating costs, capital expenditures financed capital construction and the interest portion of debt or lease. Comparative Expenditures 05 10 15 20 25 30 35 1999 2000 2001 2002 2003 ($ Millions) Protection Transportation Recreation Utilities Other Projected Expenditures 05 10 15 20 25 30 2004 2005 2006 2007 2008 ($ Millions) Protection Transportation Recreation Utilities Other Over the five year 1999 -2003 period, recreation and cultural expenditures represent the largest component of expenditures. This is in large part due to the addition of the new ACT Theatre, Greg Moore Youth Centre, expansion of the Maple Ridge Leisure Centre, a new public library, additions to Fields for Kids, other new parks and parks infrastructure and commitments under the ice rink agreement. The addition of a new Community Centre in Pitt Meadows required Maple Ridge to absorb its share of the operating costs as per the population ratio formula in the agreement. Over this five-year period revenues have increased by $1.5M or 63%, expenditures by $6.2M or 79% and the overall the financial support from other municipal revenues by $4.8M or 86% (Please refer to Schedule 8 on Page 76 & 77 for details for 2002 & 2003). As illustrated in the previous chart, the Financial Plan for 2004 – 2008 projects this area returning to historical expenditure levels of $15M -$18M. The addition of fixed assets continues at a rapid clip, mostly as a result of contributed subdivision infrastructure, replacement of the fleet at higher costs than disposals, the Town Centre Development, land acquisitions for parks, park development, newly acquired technology systems and utility system upgrades and expansion. For the five year period of 1999 – 2003 the District has added $103M to $420M of capital assets. (see chart below) On a replacement cost basis the valuation is closer to $1B. Public Works and Utility systems comprise $283M or 68%. Message from the Director of Finance Annual Report 2003 – District of Maple Ridge 37 Fixed Assets – Book Value 0 50 100 150 200 250 300 350 400 450 1999 2000 2001 2002 2003 ($ Millions) As was shown in the previous chart, the overall expenditures for maintenance and operations for Transportation and Utility expenditures remained flat from 1999 – 2003. Although the infrastructure is new and it is relatively good condition, Council has instructed that a financial sustainability plan be prepared that takes into account the feasibility of a replacement of asset program. For the period 2005 -2008 transportation expenditures are projected to rise modestly except for 2004 when expenditures jump to $22.7M as a result of uncompleted capital projects from prior years. Utility expenditures are projected to rise 33% from $10.5M in 1999 to $14M in 2008; this is in large part due to major quality and safety improvements being undertaken by the Greater Vancouver Water District. Expenditures for Protective Services were held flat for the years 1999 – 2001. This was not without consequence as service delivery in these key areas declined due to a high load factor on police officers and fire fighters. In 2002 Council approved adding police officers to the RCMP, upgrading equipment and facilities and the fire department went from a strictly volunteer department to a “paid on call system.” This action had a positive result on both service areas. From 1999 – 2003 Protective Services expenditures increased by $2.3M to $13.4 or 21% (see Schedule 8 p. for 2003 and 2003 comparatives). On a net operating basis, expenditures for fire increased by $.6M to $2.2M or 35% whilst police protection increased by $1.7M to $9.2M or 22%. For the years 2005 – 2008, expenditures for Protective Services are expected to rise from a historical level of $13M in 2003 to $18.3M or 41%. This is the result of building and providing all resources for Fire Hall No.4, other increases in the fire department resources and increased RCMP contract cost. It does not provide for any additional police officers nor reflect operational or capital expenditures recommended in the Fire Department Master Plan. In general government (administration, finance, legal, technology etc.) expenditures have remained relatively flat over the past five years. This is the result of organizing the management and support structure into efficient and effective units for service delivery and reporting. We have gained economies of scale whereby additional costs do not increment as a result of community growth. Initiatives such as the Customer Service Centre, implementing technology improvements, outsourcing certain tasks and processes that are not required on an on-going basis have served us well. In some cases, such as Economic Development, the start-up date was deferred by 16 months. (See Schedule 8 page 76 & 77. and Schedule 10 page 79.) For the period 2003 – 2008 increased expenditures in this area are the result of adjustments for inflation, special planning studies and technology improvements. Property taxation provides the District with over 50% of its revenue source for general purposes. The District is currently dependent on real growth to meet the expanded or improved service needs of a modern community. Over the past decade much of this growth has been in the residential property class which now makes up 90% of the assessment base but pays only 75% of the property taxes. As was demonstrated in the discussion and analysis above, the increased cost drivers are representative of the growth in the residential component – i.e. protective services and recreation and culture. The current challenge and objective is to grow and broaden the tax base in the other property classes such as business, commercial and industry. This will help to limit tax increases to inflation, decrease the dependency on real growth to provide Message from the Director of Finance Annual Report 2003 – District of Maple Ridge 38 quality municipal services and provide for flexibility and sustainability in financial decision making. Property Taxation – General, Debt, & Library Purposes 05 10 15 20 25 30 35 40 45 50 1998 2000 2002 2004 2006 2008 ($ Millions) The above chart illustrates actual property taxation for municipal purposes for the period 1998 – 2004 and a projection of this revenue source for 2005 – 2008. Municipal property taxes have had revenue generation rate increases of 4% per year from 1998 to 2004 and the financial plan provides for a increases of 4% in 2005, 3.75% in 2006, 3.5% in 2007 and 3.0% in 2008. In addition, real growth (new properties on the tax roll) has averaged @3% from 1998 – 2004 and the financial plan projects real growth @2.75% from 2005 – 2008. For 2004 the combined tax increase and real growth is projected to provide $2M in additional tax revenue and for the five years of the plan an additional $10.5M to $45M; this compares to $24.6M in 1998. Conclusion The District of Maple Ridge continues to respond in a positive way to these challenges through its Statement of Values, open style of government, use of the Audit and Finance Committee to manage the business affairs of the Municipality and “Town Hall Meetings” to hear directly, the concerns of its citizens. We are committed to providing residents and businesses with high quality services and administration in a financially responsible manner. Some of the major initiatives to be undertaken in 2004 are: · Start up of the Economic Development Office · Complete the acquisition of the Town Centre Development properties · An Official Community Plan Review · Complete a long term sustainable financial plan to ensure the continued financial health of the community · Internal Control review · Complete important construction projects such as the 232nd. St. bridge & 227th St. road widening and sidewalk improvement · Develop & publish Council goals for 2005 as required by the British Columbia Community Charter. Finally, I take this opportunity to give my thanks on behalf of the Finance Department to members of Council, to the Management Team and to all civic employees for their support in achieving the 2003 results. The reason for success is the strong commitment to excellence by our employees in all that they do. Jacob G. Sorba, CGA. Director of Finance Introduction to Financial Statements Annual Report 2003 – District of Maple Ridge 39 The Accompanying Consolidated Financial Statements and all other financial information included within this financial report are the responsibility of the management of the District of Maple Ridge. The District’s Financial Statements contained in this report have been prepared in accordance with the accounting principles and disclosure requirements of the Canadian Institute of Chartered Accountants guidelines contained in the Public Sector Accounting and Auditing Standards Manual. The Director of Finance is responsible for submitting annually to the Audit Committee and Council audited financial statements. These financial statements include the consolidated results of the District of Maple Ridge for the fiscal year ending December 31, 2003. The preparation of the annual financial statements is the responsibility of the Finance Department; this includes the preparation of working papers and providing support and related financial information to external auditors during the yearend audit. The Consolidated Financial Statements of the District of Maple Ridge provide important information about the overall financial condition of the District. The purpose of the consolidated financial statements is to present the effects of transactions of the District taking into consideration the accounting for all District Funds and CDMR Developments Ltd. The audited 2003 Consolidated Financial Statements for the District include: District Financial Statements: · Management’s Responsibility for Financial Reporting · Auditors' Report · Significant Accounting Policies · Consolidated Statement of Financial Position · Consolidated Statement of Financial Activities · Consolidated Statement of Change in Cash and Temporary Investments · Notes to the Consolidated Financial Statements · Statement of Changes in Operating Fund Balances · Statement of Changes in Capital Fund Balances · Statement of Changes in Reserve Balances · Schedule of Capital Assets · Debenture Debt · Tax Levies · Other Revenue from Own Sources · Schedule of Development Revenue · Schedule of Sale of Services · Continuity Schedule of Restricted Revenues · Consolidated Expenditure Summary · Transportation Services · General and Administrative Expenses · Schedule of Protective Services · Schedule of Sewer and Water Utilities · Schedule of Recreation & Cultural Revenue and Expenditures · Continuity Schedule of Reserves Annual Report 2003 – District of Maple Ridge 40 This Page Left Blank Intentionally Management’s Responsibility for Financial Reporting Annual Report 2003 – District of Maple Ridge 41 The information in this Annual Report is the responsibility of management. The Consolidated Financial Statements have been prepared in accordance with Canadian generally accepted accounting principles as outlined under “Significant Accounting Policies” on pages 39 and 40. These include some amounts based on management’s best estimates and careful judgement. Management maintains a system of internal accounting controls to provide reasonable assurance that assets are safeguarded and that transactions are authorized, recorded, and reported properly. Management also administers a program of proper business compliance. BDO Dunwoody LLP, the Municipality’s independent auditors, have audited the accompanying financial statements. Their report accompanies this statement. Council carries out its responsibility for the Consolidated Financial Statements principally through its Audit Committee. The Committee meets with management nine times on a scheduled basis and at least semiannually with BDO Dunwoody LLP to review their activities and to discuss auditing, internal control, accounting policy, and financial reporting matters. BDO Dunwoody LLP has unrestricted access to the Municipality, the Audit Committee and Council. The Audit Committee reviews the consolidated financial statements with management prior to submission to Council for approval. It also reviews the recommendations of the independent auditors for improvements to controls and as well as the actions of management to implement such recommendations. Jacob G. Sorba, C.G.A. Jim Rule Director of Finance Chief Administrative Officer Annual Report 2003 – District of Maple Ridge 42 This Page Left Blank Intentionally Annual Report 2003 – District of Maple Ridge 43 Annual Report 2003 – District of Maple Ridge 44 This Page Left Blank Intentionally Significant Accounting Policies For the year ended December 31, 2003 Annual Report 2003 – District of Maple Ridge 45 (a) Basis of Presentation It is the Municipality’s policy to follow Canadian generally accepted accounting principles and to apply such principles consistently. These Consolidated Financial Statements include the operations of the General, Water, Sewer, Capital and Reserve Funds, and the Municipality’s wholly owned development company C.D.M.R. Developments Ltd. They have been prepared using recommendations issued by the Public Sector Accounting Board of the Canadian Institute of Chartered Accountants. The financial resources of the Municipality have been consolidated for financial statement purposes totaling $9,915,687 ($5,061,888 for 2002). They include the accounts of all of the funds of the Municipality totaling $44,160,822 ($41,220,526 for 2002), less the long-term liabilities of the Municipality totaling $34,245,135 ($36,158,638 for 2002), as noted below. Operating Funds -These funds include the sewer and water utilities and report the principal operating activities of the Municipality. As at December 31, 2003 the fund balances were as follows: Restated 2003 2002 General Revenue Fund $ 5,816,745 $ 5,608,328 Sewer Revenue Fund 7,662,167 8,419,480 Water Revenue Fund 3,599,484 3,572,771 17,078,396 17,600,579 Capital Funds -These funds are used to acquire capital assets. The fund deficiencies represent the excess of capital expenditures over the long term financing which has been secured. General Capital Fund (1,723,547) (1,331,522) Sewer Capital Fund (1,069,134) (1,069,134) (2,792,681) (2,400,656) Reserve Funds -These funds have been created to hold assets for specific future requirements. As at December 31,2003 they were comprised of the funds shown in Schedule 14. Reserve Funds 29,875,107 26,020,603 Total Fund Balances 44,160,822 41,220,526 Long Term Liabilities -These liabilities are incurred to fund capital expenditures Debenture Debt-comprised of the debts shown on Schedule 2 (3,767,690) (5,317,072) Financed Capital Construction – as discussed in Note 9 (30,477,445) (30,841,556) Long Term Liabilities (34,245,135) (36,158,638) Municipal Financial Position $ 9,915,687 $ 5,061,888 (b) Accrual Accounting The accrual method for reporting revenues and expenditures has been used. (c) Capital Assets Capital assets purchased or constructed and work in process are reported as capital expenditures and are classified according to their functional use. Capital assets donated are reported at fair market value at the time of the donation. Accumulated capital expenditures, net of disposals, are reported on Schedule 1. Amortization is not recorded. Significant Accounting Policies For the year ended December 31, 2003 Annual Report 2003 – District of Maple Ridge 46 (d) Restricted Revenues and Deferred Revenues Receipts which are restricted by the legislation of senior governments or by agreement with external parties are deferred and reported as Restricted Revenues. When qualifying expenditures are incurred restricted revenues are brought into revenue at equal amounts. Restricted Revenues are comprised of the amounts shown on Schedule 7. Revenues received in advance of expenditures which will be incurred in a later period are Deferred Revenues until they are earned by being matched against those expenditures. (e) Investment Income The Municipality invests in pooled funds of the Municipal Finance Authority of British Columbia. Earnings of these funds are allocated to the members from time to time based on the market value of the pool. The Municipality recognizes its share only of the realized earnings of the pool. This revenue is recorded as investment revenue and the amount is added to the cost of the units held. (f) Subdivision Infrastructure Subdivision streets, lighting, sidewalks, drainage, and other infrastructure are required to be provided by subdivision developers. Upon completion they are turned over to the Municipality. The Municipality is not involved in the construction and does not budget for either the contribution from the developer nor the capital expenditure in its financial plan. The budget figures presented on the financial statements are equal to the value of infrastructure turned over to the Municipality during the year. (g) Local Improvements The Municipality records capital expenditures for capital assets funded by local improvement agreements as they are incurred. Revenues are recognized at the time of the expenditures to the extent that they are recoverable. (h) Use of Estimates The preparation of financial statements in accordance with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenditures during the reporting period. Significant areas requiring use of management estimates relate to the determination of severance liability, collectibility of accounts receivable, expenditures and liabilities related to the town centre development and for contingencies. Actual results could differ from those estimates. Adjustments, if any, will be reflected in operations in the period of settlement. (i) Property Held for Resale Development costs for properties which are expected to be offered for sale within one year are recorded as Property Held for Resale. These costs do not include any amount recorded as capital expenditure in previous years. Proceeds of sale, net of these development costs, are recorded as a Gain on Sales of Property. (j) Budget Figures The budget figures used are based on the five year financial plan adopted May 13,2003. They are presented on the basis used for actual results. (k) Financial Instruments The Municipality's financial instruments consist of cash and temporary investments, portfolio investments, accounts receivable, recoverable local improvements, accounts payable and accrued liabilities, refundable performance deposits, financed capital construction, and long-term debt. Unless otherwise indicated, it is management's opinion that the Municipality is not exposed to any significant interest, credit or currency risks arising from these financial instruments. Restated 2003 2002 Financial Assets Cash and temporary investments (note 1) 20,601,559 $ 19,430,541 $ Portfolio investments (note 1) 48,995,137 42,357,273 Accounts receivable (note 2) 9,426,417 10,954,316 Recoverable local improvements (note 3) 2,132,807 3,000,093 Property held for resale -154,569 Other assets 921,843 1,124,662 82,077,763 77,021,454 Liabilities Accounts payable and accrued liabilities (note 5) 5,976,755 7,501,835 Deferred revenues 3,768,338 3,662,253 Refundable performance deposits and other 1,597,231 1,412,363 Severance liability (note 8) 2,424,071 2,223,625 Restricted revenue (schedule 7) 24,150,546 21,000,852 Financed capital construction (note 9) 30,477,445 30,841,566 Debenture debt (note 6, schedule 2) 3,767,690 5,317,072 72,162,076 71,959,566 Net Financial Assets 9,915,687 $ 5,061,888 $ ________________________ Jacob G. Sorba, CGA Kathy Morse Director of Finance Mayor, District of Maple Ridge a) The notes to the Consolidated Financial Statements on pages 45-52 are an integral part of this statement b) Contingencies and Commitments (Note 10) Consolidated Statement of Financial Position As at December 31, 2003 Statement A The Corporation of the District of Maple Ridge Annual Report 2003 – District of Maple Ridge 47 Restated Actual Budget Actual 2003 2003 2002 Revenue Taxes (Schedule 3) (Note 14) Real property, special assessments, grants in lieu 61,744,553 $ Less: Collections for other governments 27,594,904 Taxes for municipal purposes 34,149,649 34,064,627 32,067,715 Sale of services (Schedule 6) 6,440,402 4,927,232 5,067,786 Other revenue from own sources (Schedule 4) 3,962,825 3,361,092 3,778,022 Senior government grants – Utilities 397,478 372,552 1,136,435 Senior government grants – Capital 737,350 4,302,818 1,292,265 Development revenue (Schedule 5) 2,311,684 15,574,268 2,677,130 Provincial & other government transfers 1,548,605 1,432,318 1,277,059 Interest and investment income Interest income 730,237 Investment income 1,933,733 Less: Deferred amount (671,035) 1,992,935 1,725,000 1,824,881 Utility user fees 9,426,885 9,390,696 8,800,265 Proceeds from disposal of capital assets 1,438,128 5,550,000 1,483,392 Net gain on sales of property held for resale 1,265 -865,765 Gain on debt refinancing 1,137,969 -628,059 Contributed subdivision infrastructure 4,849,407 4,849,407 1,663,909 68,394,582 85,550,010 62,562,683 Expenditures (Schedule 8) (Note 14) Protective services 13,371,096 14,696,541 13,054,780 Transportation services 7,967,189 18,606,318 8,768,917 Recreation and cultural 16,342,241 23,248,731 26,253,448 Sewer and water facilities 11,948,434 15,655,061 11,343,504 General government 8,228,031 10,022,697 8,225,042 Planning, public health and other 2,354,179 3,235,943 2,160,444 Reallocation of internal equipment usage (1,519,794) (1,269,057) (1,222,229) Subdivision infrastructure 4,849,407 4,849,407 1,663,909 63,540,783 89,045,641 70,247,815 Excess Revenue over (under) Expenditures 4,853,799 (3,495,631) (7,685,132) Principal Repaid (1,913,503) (1,976,665) (2,137,586) Increase in Financed Capital Construction --11,095,834 Increase (Decrease) in Fund Balances 2,940,296 (5,472,296) 1,273,116 Fund Balances-Beginning of the Year as Previously Reported 42,494,917 42,494,917 41,178,706 Adjustment of Prior Year (Note 13) (1,274,391) -(1,231,296) Fund Balalances -Beginning of the Year as Restated 41,220,526 42,494,917 39,947,410 Fund Balances-End of the Year 44,160,822 $ 37,022,621 $ 41,220,526 $ a) The notes to the Consolidated Financial Statements on pages 45-52 are an integral part of this statement b) Contingencies and Commitments (Note 10) Statement B Consolidated Statement of Financial Activities For the Year Ended December 31, 2003 The Corporation of the District of Maple Ridge 48 Annual Report 2003 – District of Maple Ridge Restated Actual Actual 2003 2002 Cash and Temporary Investments Provided by (Used For): Operations: Excess (Deficiency) of Revenue over Expenditures 4,853,799 $ (7,685,132) $ Decrease (Increase) in Non-Cash Financial Assets Portfolio investments (6,637,864) (4,878,927) Accounts receivable 1,527,899 (705,079) Recoverable local improvements 867,286 1,458,042 Property held for resale 154,569 1,463,021 Other assets 202,819 116,869 (3,885,291) (2,546,074) Increase (Decrease) in Short Term Liabilities Accounts payable and accrued liabilities (1,525,080) 1,380,676 Deferred revenues 106,085 592,547 Restricted revenues 3,149,694 4,734,622 Severance liability 200,446 660,303 Refundable performance deposits and other 184,868 83,235 2,116,013 7,451,383 Financing: Principal repaid (1,913,503) (2,137,586) Financed construction costs -11,095,834 (1,913,503) 8,958,248 Increase in Cash and Temporary Investments 1,171,018 6,178,425 Cash and Temporary Investments – Beginning of Year 19,430,541 13,252,116 Cash and Temporary Investments – End of Year 20,601,559 $ 19,430,541 $ a) The notes to the Consolidated Financial Statements on pages 45-52 are an integral part of this statement b) Contingencies and Commitments (Note 10) Consolidated Statement of Change in Cash and Temporary Investments For the Year Ended December 31, 2003 Statement C The Corporation of the District of Maple Ridge Annual Report 2003 – District of Maple Ridge 49 Annual Report 2003 – District of Maple Ridge 50 This Page Left Blank Intentionally Notes to the Consolidated Financial Statements For the year ended December 31, 2003 Annual Report 2003 – District of Maple Ridge 51 1. Cash and Investments: Cash and Temporary Investments: Cash and temporary investments as at December 31, 2003 were comprised as follows: 2003 2002 Cash $ 5,516,095 $ 1,743,401 Temporary Investments 15,085,464 17,687,140 $20,601,559 $19,430,541 Temporary Investments are bank term deposits and T-Bills with effective interest rates of 2.6% -3.5% (2002 – 2.8% -3.5%) Additionally, the Municipality holds temporary investments of $948,093 and agreements receivable of $273,498 for trusts which are not reported elsewhere in the financial statements and are comprised as follows: Balance Interest Balance Dec. 31, 2002 Earned Receipts Disbursements Dec. 31, 2003 Latecomer Fees $ 51,111 $ — $ 49,413 $ 51,111 $ 49,413 Cemetery Perpetual Care 446,755 15,164 34,358 15,164 481,113 Greater Vancouver Regional District 896,870 — 669,152 874,957 691,065 $1,394,736 $ 15,164 $ 752,923 $ 941,232 $1,221,591 Portfolio Investments Portfolio investments with effective interest rates of 2.7% -5.0% (2002 – 3.72% -5.5%) consist of Provincial Government Bonds, Canadian Government Bonds, Bank Notes and pooled investment funds administered by the Municipal Financing Authority of British Columbia. The carrying value of the security is based on the cost method whereby the cost of the security is adjusted to reflect investment income, which is accruing, and any permanent decline in market value. The carrying value of Portfolio Investments at December 31, 2003 was $48,995,137, ($42,357,273 for 2002) and the market value was $48,984,967 ($42,622,028 for 2002). 2. Accounts Receivable: 2003 2002 Property Taxes $ 4,030,324 $ 4,094,345 Other Governments 668,479 1,157,523 General and Accrued Interest 1,520,135 1,511,305 Development Cost Charges 3,238,518 4,205,176 9,457,456 10,968,349 Less Allowance for Doubtful Accounts (31,039) (14,033) $ 9,426,417 $10,954,316 Notes to the Consolidated Financial Statements For the year ended December 31, 2003 Annual Report 2003 – District of Maple Ridge 52 3. Recoverable Local Improvements The Municipality provides interim financing for certain geographically localized capital projects. It recovers these amounts either from the benefiting property owners or from provincial subsidies. As at December 31, 2003 the recoverable balance was comprised as follows: 2003 2002 Recoverable from property owners Transportation and drainage projects $ 484,901 $ 621,554 Local improvement fund projects 563,863 651,507 Sewerage projects 458,896 808,742 Water system projects 4,382 8,203 1,512,042 2,090,006 Recoverable from Province Sewerage projects 522,699 737,335 Water system projects 98,066 172,752 620,7659 10,087 $2,132,807 $3,000,093 4. Pension Plan The Municipality and its employees contribute to the Municipal Pension Plan (the “Plan”), a jointly trusted pension plan. The board of trustees, representing plan members and employers, is responsible for overseeing the management of the pension plan, including investment of the assets and administration of the plan. The pension plan is a multi-employer contributory defined benefit pension plan with about 123,000 active contributors including approximately 28,000 contributors from local governments. Every three years an actuarial valuation is performed to assess the financial position of the Plan and the adequacy of plan funding. The most recent valuation as at December 31, 2000 indicated funding surplus of $436 million. The Joint Trust Agreement specifies how surplus assets can be used. The actuary does not attribute portions of the surplus to individual employers. Each employer records contributions to the Plan as expenditures in the year payments are made. Employer contributions to the Plan for 2003 were $763,125 ($729,849 for 2002) they are included in consolidated operating expenditures. Employee contributions for 2003 were $777,482 ($753,973 for 2002). Notes to the Consolidated Financial Statements For the year ended December 31, 2003 Annual Report 2003 – District of Maple Ridge 53 5. Accounts Payable and Accrued Liabilities: 2003 2002 Accounts Payable: General $1,647,135 $3,127,342 Other Governments 3,110,776 3,361,303 Salaries and Wages 540,261 440,575 Contractors Holdbacks 96,586 180,220 5,394,758 7,109,440 Accrued Liabilities: Vacation Pay 466,916 356,606 Sick Pay Benefits 115,081 35,789 581,997 392,395 $5,976,755 $7,501,835 6. Long Term Debt: Debt principal is reported net of Sinking Fund balances and interest expense is reported net of Sinking Fund earnings. Included in the debenture debt on Schedule 2 are certain debentures payable in U.S. dollars which are recorded on the basis of $1 Canadian equals to $1 U.S. At the year-end this debt amounted to $1,084,143 U.S. and the Canadian dollar equivalent payable was $1,403,098. Foreign exchange costs on debt interest and principal are recognized at the time of payments. The Municipality carries no debt for others. The long-term debt issued and outstanding as at December 31, 2003 was $3,767,690 ($5,317,072 as at December 31, 2002). The following amounts are payable over the next five years: 2004 2005 2006 2007 2008 Water $ 260,174 $ 222,198 $ 46,053 $ 49,128 $ 52,452 Sewer 618,478 526,972 275,824 18,259 8,345 General 348,615 367,567 162,463 170,586 63,505 Development Cost Charges 62,018 69,693 78,317 88,009 98,900 $1,289,285 $1,186,430 $ 562,657 $ 325,982 $ 223,202 The Municipality has the following approved long-term debt unissued as at December 31, 2003. L/A Bylaw L/A Amount Expiry Date #5735 $566,000 Nov. 2013 #5796 $225,000 May 2004 Notes to the Consolidated Financial Statements For the year ended December 31, 2003 Annual Report 2003 – District of Maple Ridge 54 7. Debt Reserve Fund: The Municipal Finance Authority of British Columbia provides capital financing for regional districts and their member municipalities. The Authority is required to establish a Debt Reserve Fund. Each regional district, through its member municipalities who share in the proceeds of a debt issue, is required to pay into the Debt Reserve Fund certain amounts set out in the debt agreements. The Authority pays into the Debt Reserve Fund these monies from which interest earned thereon less administrative expenses becomes an obligation to the regional districts. It must then use this fund, if at any time there are insufficient funds, to meet payments on its obligations. If this occurs the regional districts may be called upon to restore the fund. Upon the maturity of a debt issue the unused portion of the Debt Reserve Fund established for that issue will be discharged to the Municipality. The Municipality has estimated that there is only a remote possibility that these funds will not be paid to it and therefore these funds have been recorded for 2003 as Other Assets. Recognition of these funds as a financial asset for the first time in 2003 has resulted in an additional Gain on debt refinancing of $702,377 for the current year. 8. Severance Liability The Municipality provides severance benefits by paying cash settlements to qualifying employees who cease their employment with the Municipality after a specified period of time Full time employees hired before February 11,1999 qualify for five days pay per year provided that they either: (a) work a minimum of twenty years with the Municipality or, (b) retire as defined under the Public Sector Pension Plan Act Full time employees hired after February 11,1999 qualify for twenty days pay provided they work a minimum of ten years with the Municipality and retire as defined by the Public Sector Pension Plan Act. The severance liability requires no contributions from the employees. The Municipality accrues the expected severance liability for employees during their expected service period of twenty years. Management estimates that salary rate increases will approximately equal the Municipality’s cost of borrowing rates over the long term. The discount rate used to determine the accrued severance liability is the Municipality’s cost of borrowing. No independent actuarial valuation has been performed to date. Notes to the Consolidated Financial Statements For the year ended December 31, 2003 Annual Report 2003 – District of Maple Ridge 55 The severance liability at December 31, 2003 was $2,424,071, ($2,223,625 for 2002). The total severance liability related expenditure is included in the consolidated operating expenditures but it is not separately funded. 2003 2002 Severance Liability, beginning of the year $2,223,625 $1,563,322 Add: Current period severance expenditure 183,633 692,469 Interest on accrued severance liability 124,391 101,354 Total severance liability related expenditure 308,024 793,823 Less: Current year severance payments (107,578) (133,520) Severance Liability-end of the year $2,424,071 $2,223,625 9. Financed Capital Construction The Municipality is a party to agreements for the construction and leaseback of facilities in the downtown core area comprising an office complex, a library, a leisure center, and an arts center. Construction under these agreements was completed in 2002. In July 2002 the Appeal Court of British Columbia ruled that these agreements were ultra vires. The Municipality is currently negotiating with the developer to replace these agreements. It is not known what form the new agreements will take or what the payments may be. The Municipality has continued to apply accounting methods based on its understanding of the original agreements as they represent the best estimate of the obligation at this time. The terms of these agreements, as the Municipality understands them, provide for annual payments, lump sum payments, and buyout options at the end of an initial 5-year period as follows: Year Amount 2004 $ 2,589,400 2005 2,589,400 2006 20,221,100 2007 11,688,700 $37,088,600 The Municipality accrued the liability due under these agreements based on the cost of each facility. Cost was determined by discounting the cash flow associated with each facility. As at December 31, 2003 the cost of the facilities completed under these agreements were approximately $39.5 Million and the amount financed was approximately $30.5 Million, ($30.8 Million for 2002). Notes to the Consolidated Financial Statements For the year ended December 31, 2003 Annual Report 2003 – District of Maple Ridge 56 10. Commitments and Contingencies: (a) Contingent Liabilities (i) The Municipality, as a member of the Greater Vancouver Regional District, the Greater Vancouver Sewerage and Drainage District, and the Greater Vancouver Water District, is jointly and severally liable for their net capital liabilities. (ii) The loan agreements with the Municipal Finance Authority provide that if the Authority does not have sufficient funds to meet payments on its obligations it shall make payments from the Debt Reserve Fund which in turn is established by a similar Debt Reserve Fund in the Municipality and all other borrowing participants. If the Debt Reserve Fund is deficient the Authority’s obligations become a liability of the regional district and may become a liability of the participating municipalities. (b) Reciprocal Insurance Exchange Agreement The Municipality is a Subscribed member of the Municipal Insurance Association of British Columbia (the “Exchange”) as provided by Section 3.02 of the Insurance Act of the Province of British Columbia. The main purpose of the Exchange is to pool the risks of liability so as to lessen the impact upon any Subscriber. Under the Reciprocal Insurance Exchange Agreement the Municipality is assessed a premium and specific deductible for its claims based on population. The obligation of the Municipality with respect to the Exchange and/or contracts and obligations entered into by the Exchange on behalf of its Subscribers in connection with the Exchange are in every case several, and not joint and several. The Municipality irrevocably and unconditionally undertakes and agrees to indemnify and save harmless the other Subscribers against liability losses and costs which the other Subscriber may suffer. (c) Third Party Claims Various lawsuits and claims are pending by and against the District. It is the opinion of management that final determination of these claims will not materially affect the financial position of the Municipality. Any ultimate settlements will be recorded in the year the settlements occur. (d) Contractual Obligations (i) Sewer and Water (a) Under cost sharing agreements with the Greater Vancouver Water District, the Municipality is committed to make annual payments as follows: Until the year 2007 totaling $236,289 plus related interest for the water reservoir on Dewdney Trunk Road at 248th Street, the current annual payment is $87,149 including interest until 2007 when the payment terms are to be renegotiated. Until the year 2012 totaling $885,640 plus related interest for the water main joint 1. Current annual payment is $226,736 including interest until 2012. (b) Under a cost sharing agreement with the Greater Vancouver Sewerage and Drainage District, the Municipality is committed to make annual payments until 2012 totaling $1,531,751 plus related interest for facilities in the Maple Ridge/Pitt Meadows sub-area. The current annual payment is $220,482 plus interest. Notes to the Consolidated Financial Statements For the year ended December 31, 2003 Annual Report 2003 – District of Maple Ridge 57 (ii) Recreation and Cultural Services (a) In 1998 the Municipality entered into an agreement to purchase ice sheet time for five years commencing in 1999, with a five-year renewal option. In January 2004 the Municipality renewed the agreement for an additional five-year period. The minimum annual payment due for the provision of ice time is $552,225. These payments are recorded as expenditures when the ice time is paid. (e) Contingent Gains In 1998 the Municipality provided financial assistance, including property appraised at $2.2 Million, to the Maple Ridge Elderly Citizen Recreation Association in order to enable them to construct a residential housing complex for senior citizens. In exchange for the assistance, the Association agreed to pay the Municipality proceeds from the sale of housing units after all construction and mortgaging costs had been repaid. The Association also agreed to place restrictive covenants on each unit, which could additionally recover up to $500 per year on re-sales by subsequent owners. These covenants will apply until the Municipality has received from such re-sales a further $1.4 Million or until the year 2030. In 2003 proceeds from unit sales of $1.06 million (2002 -$1.42 million) were paid to the Municipality. These payments have been recorded as Proceeds from disposal of capital assets. There is one unit remaining to be sold with a net realizable value of approximately $160,000. In 2003 proceeds from the resale of units under the restricted covenants amounting to $52,000 (2002 -$Nil) were paid to the Municipality. These proceeds are recorded as other revenue from own sources. 11. Interest Expenditures: Interest expenditures consist of debenture debt interest, capital construction financing costs, and interest on the severance liability. Interest is apportioned to functional areas of expenditure based on the related debts incurred as follows. Debenture Debt Interest Capital Construction Financing Interest on Retirement Liability Total Interest 2003 Total Interest 2002 Transportation Services $ 84,803 $ — $ — $ 84,803 $ 106,030 Recreation & Cultural 136,563 1,972,562 — 2,109,125 1,303,703 Sewer & Water Facilities 484,051 — — 484,051 616,624 General Government 8,187 251,452 124,391 384,030 402,445 $ 713,604 $2,224,014 $ 124,391 $3,062,009 $2,428,802 Notes to the Consolidated Financial Statements For the year ended December 31, 2003 Annual Report 2003 – District of Maple Ridge 58 12. Expenditures by Object of Expenditure: Restated Note 13 2003 2002 Goods and Services $36,709,464 $47,467,142 Wages and Salaries 18,919,903 18,687,962 Interest and finance fees 3,062,009 2,428,802 Contributed Infrastructure 4,849,407 1,663,909 Total Expenditures $63,540,783 $70,247,815 13. Accounting Change -Correction of Error An error in capital funding in a prior year resulted in the Municipality’s reported liability for restricted revenue being understated. Correcting this error retroactively has restated previously reported amounts as follows: (a) Net Financial Assets and Fund Balances at the beginning of year 2002 have been reduced by $1,231,296. Investment income for 2002 has been reduced by $43,095. (b) Net Financial Assets and Fund Balances at the end of year 2002 have been reduced by $1,274,391. Restricted Revenue December 31, 2002 has increased by $1,274,391. 14. Comparative Figures Taxes charged for the operation of the Municipal library have been reclassified from Collections for Other Governments to taxes for Municipal Purposes and the related remittances have been reclassified as Recreation and Cultural expenditures for the years 2002 and 2003. This reclassification has increased both revenue and expenditures for year 2002 by $1,556,001 and for the year 2003 by $1,679,075. 15. Subsequent Events Subsequent to year end the Municipality has entered into agreements to purchase buildings and property for approximately $4 million. Restated Actual Budget Actual 2003 2003 2002 Revenue Taxes (Schedule 3) Real property, special assessments, grants in lieu 61,744,553 $ 61,673,597 $ 58,319,323 $ Less: Collections for other governments 27,594,904 27,608,970 26,251,608 Total taxes for municipal purposes 34,149,649 34,064,627 32,067,715 Sale of services (Schedule 6) 6,440,402 4,927,232 5,067,786 Other revenue from own sources (Schedule 4) 3,962,825 3,361,092 3,778,022 Senior government grants – Utilities 397,478 372,552 1,136,435 Development revenue (Schedule 5) 355,473 243,096 322,315 Provincial transfers 1,548,605 1,432,318 1,277,059 Interest and investment income 1,229,646 1,054,996 1,155,587 Utility user fees 9,426,885 9,390,696 8,800,265 Net gain on sales of property held for resale 1,265 -865,765 Gain on debt refinancing (Note 7) 1,137,969 -628,059 Proceeds from disposal of capital assets 1,438,128 5,550,000 1,483,392 60,088,325 60,396,609 56,582,400 Expenditures Protective services (Schedule 11) 13,005,413 13,465,885 12,273,427 Transportation services (Schedule 9) 5,378,139 5,751,858 5,091,173 Recreation and cultural (Schedule 13) (Note 14) 14,099,124 12,786,411 11,767,242 Sewer and water facilities (Schedule 12) 9,425,430 9,443,800 9,011,106 General government (Schedule 10) 6,553,093 7,375,925 6,546,205 Public and environmental health 2,164,983 2,475,137 2,160,444 Reallocation of internal equipment usage (1,519,794) (1,269,057) (1,222,229) 49,106,388 50,029,959 45,627,368 Excess of Revenue Over Expenditures 10,981,937 10,366,650 10,955,032 Transfers to Capital (2,318,453) (4,556,664) (1,717,843) Transfers to Reserves (Schedule 14) (7,272,164) (6,054,627) (7,354,951) Principal Repaid (1,913,503) (1,976,665) (2,137,586) Increase (Decrease) in Operating Fund Balances (522,183) (2,221,306) (255,348) Operating Fund Balances – Beginning of Year as Previously Reported 17,805,836 17,600,579 18,018,089 Adjustment of Prior Years (Note 13) (205,257) -(162,162) Operating Fund Balances – Beginning of Year as Restated 17,600,579 17,600,579 17,855,927 Operating Fund Balances-End of the Year 17,078,396 $ 15,379,273 $ 17,600,579 $ Statement of Changes in Operating Fund Balances For the Year Ended December 31, 2003 Statement 1 The Corporation of the District of Maple Ridge Annual Report 2003 – District of Maple Ridge 59 Restated Actual Budget Actual 2003 2003 2002 Capital Fund Balances -Beginning of Year as Previously Reported (1,331,522) $ (2,400,656) $ (8,296,942) $ Adjustment of prior years (Note 13) (1,069,134) -(1,069,134) Capital Fund Balances -Beginning of Year as Restated (2,400,656) $ (2,400,656) $ (9,366,076) $ Add: Revenues Allocated to Capital Funds Subdivision infrastructure contributions 4,849,407 4,849,407 1,663,909 Senior government grants 737,350 4,302,818 1,292,265 Development revenue 956,925 14,325,858 1,113,076 Other capital contributions 999,286 1,005,314 1,241,739 7,542,968 24,483,397 5,310,989 Increase in Financed Capital Construction --11,095,834 Internal Transfers Transfer from Revenue Funds 2,318,453 4,556,664 1,717,843 Transfer from Reserve Funds Local improvement fund (4,994) (18,315) 22,375 Equipment Replacement 753,768 968,149 938,145 Capital works 1,563,415 4,224,508 6,254,952 Fire Department capital acquisition 154,526 1,028,170 453,967 Land 5,368 7,730 731,285 Committed projects 1,514,986 3,688,392 5,060,477 Other 193,880 1,408,500 -4,180,949 11,307,134 13,461,201 Less: Capital Expenditures Protective services 365,683 1,230,656 781,353 Transportation 2,589,050 12,854,460 3,677,744 Recreation 2,243,117 10,462,320 14,486,206 Sewer and water utilities 2,523,004 6,211,261 2,332,398 General government 1,674,938 2,646,772 1,678,837 Planning, public health and other 189,196 760,806 -Subdivision infrastructure 4,849,407 4,849,407 1,663,909 14,434,395 39,015,682 24,620,447 Increase (Decrease) in Capital Fund Balances (392,025) 1,331,513 6,965,420 Capital Fund Balances -End of Year (2,792,681) $ (1,069,143) $ (2,400,656) $ Statement of Changes in Capital Fund Balances For the Year Ended December 31, 2003 Statement 2 The Corporation of the District of Maple Ridge 1 Annual Report 2003 – District of Maple Ridge Actual Budget Actual 2003 2003 2002 Reserve Balances -Beginning of the Year 26,020,603 $ 26,020,603 $ 31,457,559 $ Interest allocated to Reserves (Schedule 14) 763,289 670,004 669,294 Internal Transfers (Schedule 14) Transfer from Revenue Funds 7,272,164 6,054,627 7,354,951 Transfer to Capital Funds (4,180,949) (11,307,134) (13,461,201) 3,091,215 (5,252,507) (6,106,250) Increase (Decrease) in Reserve Balances 3,854,504 (4,582,503) (5,436,956) Reserve Balances -End of Year 29,875,107 $ 21,438,100 $ 26,020,603 $ Statement of Changes in Reserve Balances For the Year Ended December 31, 2003 Statement 3 The Corporation of the District of Maple Ridge Annual Report 2003 – District of Maple Ridge 61 Annual Report 2003 – District of Maple Ridge 62 This Page Left Blank Intentionally Restated General Capital Fund 2003 2002 Public Works: Roads and bridges 122,325,311 $ 118,438,548 $ Drainage 42,253,093 40,956,869 Sidewalks 8,897,534 8,433,544 Equipment 6,266,871 6,157,163 Landscaping and other 1,842,703 84,685 Supplies inventory 113,431 1,842,703 Funded work in process 1,113,661 1,592,970 182,812,604 177,506,482 General Government: Land 5,874,645 5,777,178 Buildings and equipment 16,902,248 15,520,898 Funded work in process 3,064,771 2,931,174 25,841,664 24,229,250 Protective: Firehalls and equipment 8,683,486 8,009,907 Police buildings and equipment 3,587,553 3,565,338 Search & Rescue 163,080 163,080 Funded work in process 68,789 398,902 12,502,908 12,137,227 Parks and Recreation: Parks and playgrounds 30,037,917 28,886,241 Recreation facilities and equipment 26,248,982 24,272,940 Funded work in process 3,147,015 4,681,593 59,433,914 57,840,774 Other Public and environmental health 2,361,453 2,172,256 Town Centre buildings (capitalized value) 38,503,122 38,503,122 40,864,575 40,675,378 Total General Capital Fund 321,455,665 312,389,111 Water Supply System Capital Fund Land 122,261 122,261 Supplies inventory 121,939 91,037 Waterlines 42,510,087 39,667,711 Funded work in process 415,669 1,078,177 Total Water Supply System Capital Fund 43,169,956 40,959,186 Sanitary Sewer Capital Fund Land 12,049 12,049 Supplies inventory 48,208 35,991 Sewer lines 51,771,708 49,056,058 Funded work in process 434,786 1,299,543 Total Sanitary Sewer Capital Fund 52,266,751 50,403,641 Work in Process Unfunded work in process 2,792,681 2,400,656 Total 419,685,053 $ 406,152,594 $ Schedule 1 The Corporation of the District of Maple Ridge Schedule of Capital Assets As at December 31, 2003 Annual Report 2003 – District of Maple Ridge 63 Maturity Date of Issue Bylaw Purpose Dates Recreation and Cultural Dec 01, 1980 * 2836 Leisure Pool Complex 1980 – 2005 Nov 15, 1983 3152 Leisure Pool Complex 1984 – 2008 Jun 12, 1985 3477 Leisure Pool Final Draw 1985 – 2010 Subtotal Recreation and Cultural Transportation Public Works Jun 12, 1985 3471 ARDSA Project 1985 – 2010 Local Improvements May 11, 1988 3679 Road Paving (MFA 44) 1988 – 2003 May 11, 1988 3785 Curb and Gutter Lougheed L.I.P. (MFA 44) 1988 – 2003 May 11, 1988 3902 Road Paving (MFA 44) 1988 – 2003 May 09, 1989 4052 Stage 1 Paving 1989 – 2004 May 09, 1989 4060 248th Street Paving 1989 – 2004 May 09, 1989 4061 110th Street Paving 1989 – 2004 May 09, 1989 4064 122nd Street Paving 1989 – 2004 Oct 24, 1990 4324 Chigwell St. Storm L.I.P. (MFA 49) 1990 – 2005 May 13, 1992 4667 Downtown Parking 1992 – 2007 Dec 01, 1995 5291 Downtown Parking Issue 61 1995 – 2010 Development Cost Charges Jun 15, 1983 3086 Storm Sewer System D.C.C. (MFA 33) 1983 – 2008 Subtotal Transportation General Government Jul 28, 1999 N/A Telephone Equipment Lease 1999 – 2004 * Denominated in US Funds The Corporation of the District of Maple Ridge Schedule 2 Debenture Debt For the Year Ended December 31, 2003 General Capital Fund 64 Annual Report 2003 – District of Maple Ridge 64 Debentures Interest Outstanding and Debenture Debt Original Before 2003 Exchange Retirements December 31, Interest Debenture Debt Retirement 2003 2003 2003 Rates 1,680,055 $ 562,803 $ 118,149 $ 163,906 $ 398,897 $ 13.820 350,000 126,046 14,177 18,531 107,515 11.125 – 11.500 111,700 51,223 4,237 5,364 45,859 12.500 2,141,755 740,072 136,563 187,801 552,271 131,180 60,157 4,975 6,300 53,857 12.500 10,800 991 (193) 991 -10.000 50,000 4,588 (896) 4,588 -10.000 19,106 1,753 (343) 1,753 -10.000 118,805 21,282 2,846 10,381 10,901 10.900 17,398 3,117 417 1,520 1,597 10.900 15,297 2,740 366 1,336 1,404 10.900 3,500 627 84 305 322 10.900 5,455 1,431 (24) 454 977 11.200 1,200,000 500,534 38,227 90,584 409,950 9.628 300,000 186,804 18,341 19,563 167,241 9.628 339,600 180,744 21,003 22,062 158,682 12.375 2,211,141 964,768 84,803 159,837 804,931 227,086 104,307 8,187 41,313 62,994 7.000 4,579,982 $ 1,809,147 $ 229,553 $ 388,951 $ 1,420,196 $ Schedule 2 -continued 65 Annual Report 2003 – District of Maple Ridge 65 Maturity Date of Issue Bylaw Purpose Dates Local Improvements May 02, 1988 3817 129th Avenue Water Line L.I.P. (MFA 44) 1988 – 2003 May 02, 1988 3800 117th Avenue Water Line L.I.P. (MFA 44) 1988 – 2003 May 09, 1989 4057 Edge Street Water Line (MFA 46) 1989 – 2004 Water Improvement Program Jul 01, 1979 2738 232nd Street Water Improvement 1979 – 2004 Jul 01, 1979 2769 D.T.R. 240th St. – 263rd St. Water Improvement 1979 – 2004 *Dec 01, 1980 2837 Water Improvement Program 1980 – 2005 Jun 15, 1983 3057 Water System Stage II (MFA 33) 1983 – 2003 Jun 12, 1985 3496 Water Improvement Program Phase III 1985 – 2010 Oct 24, 1990 4324 Water Improvement Project (MFA 49) 1990 – 2005 Development Cost Charges Jun 15, 1983 3084 Water System D.C.C. (MFA 33) 1983 – 2008 * Denominated in US Funds Schedule 2 -continued Debenture Debt The Corporation of the District of Maple Ridge Water Supply System Capital Fund For the Year Ended December 31, 2003 66 Annual Report 2003 – District of Maple Ridge 66 Debentures Interest Outstanding and Debenture Debt Original Before 2003 Exchange Retirements December 31, Interest Debenture Debt Retirement Paid in 2003 in 2003 2003 Rates 11,201 1,028 (201) 1,028 -10.000 9,605 881 (172) 881 -10.900 42,230 7,565 1,012 3,690 3,875 10.900 173,393 32,852 3,238 15,655 17,197 9.625 345,980 67,201 6,888 31,963 35,238 10.000 768,758 257,527 54,063 74,999 182,528 13.65 – 14.000 2,000,000 243,571 15,041 243,571 -12.375 640,000 293,492 25,254 30,735 262,757 12.500 891,840 233,986 24,275 74,222 159,764 11.200 113,600 60,461 7,026 7,380 53,081 11.250 4,996,607 $ 1,198,564 $ 136,424 $ 484,124 $ 714,440 $ Schedule 2 -continued 67 Annual Report 2003 – District of Maple Ridge 67 Maturity Date of Issue Bylaw Purpose Dates Master Sewer Program Jan 22, 1980 2819 Master Sewer Program 1980 – 2005 Dec 01, 1980 * 2838 Sewer Area “A” 1980 – 2005 Jan 15, 1982 3019 Sewer Area “A” 1982 – 2006 Jan 15, 1982 3020 Sewer Area “A” 1982 – 2006 Local Improvements Dec 12, 1985 3617 Sanitary Sewer 203rd Street (3475) 1985 – 2005 May 11, 1988 3622 Sanitary Sewer Colemore St. L.I.P. (MFA 44) 1988 – 2008 May 11, 1988 3818 Sanitary Sewer Barclay St. L.I.P. (MFA 44) 1988 – 2008 May 11, 1988 3894 Sanitary Sewer Hampton St. L.I.P. (MFA 44) 1988 – 2003 May 09, 1989 3894 Sanitary Sewer Hampton St. L.I.P. (MFA 46) 1989 – 2004 May 09, 1989 4116 Sanitary Sewer Eagle Ave. L.I.P. (MFA 46) 1989 – 2004 Oct 24, 1990 4324 Sanitary Sewer 206th St. L.I.P. (MFA 49) 1990 – 2005 Oct 24, 1990 4324 Sanitary Sewer Chatwin Ave. L.I.P. (MFA 49) 1990 – 2005 Jun 15, 1983 3078 Sanitary Sewer Line Construction (MFA 33) 1983 – 2003 Jun 15, 1983 3079 Sanitary Sewer Line Construction (MFA 33) 1983 – 2003 May 13, 1992 4667 Sanitary Sewer 240th Street Albion (4468) 1992 – 2007 Sewage Treatment Plant Aug 01, 1977 2531 Sewage Treatment Plant 1979 – 2003 Development Cost Charges Jun 15, 1983 3085 Sewer System D.C.C. (MFA 33) 1983 – 2008 * Denominated in US Funds The Corporation of the District of Maple Ridge Sanitary Sewer Capital Fund For the Year Ended December 31, 2003 Debenture Debt Schedule 2 -continued 68 Annual Report 2003 – District of Maple Ridge 68 Debentures Interest Outstanding and Debenture Debt Original Before 2003 Exchange Retirements December 31, Interest Debenture Debt Retirement Paid in 2003 in 2003 2003 Rates 1,501,608 $ 282,110 $ 27,436 $ 134,514 $ 147,596 $ 9.500 2,117,325 709,284 148,901 206,566 502,718 13.820 750,000 335,090 51,248 66,821 268,269 14.750 1,531,916 542,349 55,591 116,431 425,918 10.000 2,884 ----11.150 78,774 32,084 1,998 4,717 27,367 10.000 30,433 12,395 772 1,823 10,572 10.000 90,700 8,322 (1,624) 8,322 -10.000 24,744 4,433 593 2,163 2,270 10.900 4,943 885 118 431 454 10.900 16,952 4,448 477 1,411 3,037 11.200 118,832 31,177 3,341 9,889 21,288 11.200 16,000 1,949 120 1,949 -12.350 254,000 30,933 1,740 30,933 -12.350 112,375 46,873 3,580 8,483 38,390 9.628 584,322 56,108 28,827 56,108 -8.000 396,300 210,921 24,509 25,746 185,175 12.375 7,632,108 $ 2,309,361 $ 347,627 $ 676,307 $ 1,633,054 $ 1,420,196 $ 714,440 1,633,054 3,767,690 $ Schedule 2 -continued Sanitary Sewer Capital Fund SUMMARY: Water Supply System Capital Fund General Capital Fund 69 Annual Report 2003 – District of Maple Ridge 69 2003 2003 2002 Actual Budget Actual General purposes -gross taxes 29,437,973 $ 29,414,792 $ 27,462,405 $ Less: municipally-owned property (241,662) (244,544) (77,208) General Purposes -Net Taxes 29,196,311 29,170,248 27,385,197 Special assessments and local improvements 2,723,946 2,706,731 2,558,188 Sewer levy 656,303 644,004 640,536 Water levy 41,650 49,404 49,350 Grants in lieu of taxes 1,531,439 1,494,240 1,434,444 Total Taxes for Municipal Purposes (Note 14) 34,149,649 34,064,627 32,067,715 Collections for other governments: School Districts -Provincial Government 23,764,259 23,764,361 22,599,634 British Columbia Assessment Authority 734,906 734,906 711,907 Dyking Districts 128,284 142,248 198,294 Greater Vancouver Regional District Parks 638,575 638,575 598,563 Greater Vancouver Transportation Authority 2,327,361 2,327,361 2,141,835 Municipal Finance Authority 1,519 1,519 1,375 Total Collections for Other Governments 27,594,904 27,608,970 26,251,608 Real Property, Special Assessments, Grants In Lieu 61,744,553 $ 61,673,597 $ 58,319,323 $ Schedule 3 The Corporation of the District of Maple Ridge Tax Levies For the Year Ended December 31, 2003 70 Annual Report 2003 – District of Maple Ridge 2003 2003 2002 Actual Budget Actual Business licences 431,439 $ 370,008 $ 346,434 $ Delivery vehicle licences 19,949 21,996 19,109 Building permits 1,539,759 1,228,008 1,499,438 Dog licences 147,312 145,764 139,186 Fines and parking revenue 108,474 89,220 97,678 Property rentals 416,652 386,424 376,271 Subdivision inspection fees and other 324,584 282,000 405,085 Penalties and interest on taxes 701,641 676,376 593,004 Miscellaneous 66,269 2,992 40,747 Recovery of interest costs -local improvements 206,746 158,304 261,070 Total Other Revenue from Own Sources 3,962,825 $ 3,361,092 $ 3,778,022 $ Schedule 4 The Corporation of the District of Maple Ridge Other Revenue from Own Sources For the Year Ended December 31, 2003 Annual Report 2003 – District of Maple Ridge 71 2003 2003 2002 Actual Budget Actual Development Revenue Received Through: Revenue Funds Development cost charges 355,473 $ 243,096 $ 322,315 $ 355,473 243,096 322,315 Capital Funds Other capital contributions 999,286 1,005,314 1,241,739 Parkland dedications 752 -248,136 Specified capital fees 142,626 74,518 507 Development cost charges 813,547 14,251,340 864,433 1,956,211 15,331,172 2,354,815 Total Development Revenue 2,311,684 $ 15,574,268 $ 2,677,130 $ Schedule 5 The Corporation of the District of Maple Ridge Schedule of Development Revenue For the Year Ended December 31, 2003 72 Annual Report 2003 – District of Maple Ridge 2003 2003 2002 Actual Budget Actual General Revenue Fund: General government 672,128 $ 428,892 $ 543,866 $ Transportation 108,949 115,164 71,440 Cemetery 207,554 209,604 237,573 Recreation (Schedule 13) 3,764,805 3,575,136 3,602,780 Gravel Sales 96,672 66,504 113,205 Policing and firefighting fees 1,059,487 201,008 226,935 Recycling Fees 140,229 80,004 73,494 Total General Revenue Fund 6,049,824 4,676,312 4,869,293 Water Connection Fees 280,351 170,496 143,215 Sewer Connection Feees 110,227 80,424 55,278 Total Sale of Services 6,440,402 $ 4,927,232 $ 5,067,786 $ Schedule 6 The Corporation of the District of Maple Ridge Schedule of Sale of Services For the Year Ended December 31, 2003 Annual Report 2003 – District of Maple Ridge 73 Restated 2003 2002 2003 2002 Beginning balance as restated (Note 13) 17,093,249 $ 12,495,096 $ 916,340 $ 957,866 $ Interest earned 524,796 390,916 36,903 43,911 Collections 3,365,105 5,393,985 292,467 162,699 Expenditures -operating (355,473) (322,315) --Expenditures -capital (813,547) (864,433) (752) (248,136) Ending balance 19,814,130 $ 17,093,249 $ 1,244,958 $ 916,340 $ Schedule 7 The Corporation of the District of Maple Ridge Continuity Schedule of Restricted Revenues For the Year Ended December 31, 2003 Development Cost Charges Parkland Acquisition Charges 74 Annual Report 2003 – District of Maple Ridge 74 Restated 2003 2002 2003 2002 2003 2002 113,578 $ 109,584 $ 2,877,685 $ 2,703,684 $ 21,000,852 $ 16,266,230 $ 4,143 3,994 105,193 101,008 671,035 539,829 --133,485 73,500 3,791,057 5,630,184 ----(355,473) (322,315) --(142,626) (507) (956,925) (1,113,076) 117,721 $ 113,578 $ 2,973,737 $ 2,877,685 $ 24,150,546 $ 21,000,852 $ Downtown Parking Charges Schedule 7 -continued Developer Specified Projects Total Restricted Revenues 75 Annual Report 2003 – District of Maple Ridge 75 The Corporation of the District of Maple Ridge 2003 2003 Operating Operating Actual Budget Statement 1 Statement 1 Protective services 13,005,413 $ 13,465,885 $ Transportation services 5,378,139 5,751,858 Recreation & cultural (Note 14) 14,099,124 12,786,411 Sewer & water facilities 9,425,430 9,443,800 General government 6,553,093 7,375,925 Planning, public health and other 2,164,983 2,475,137 Reallocation of internal equipment (1,519,794) (1,269,057) Subdivision infrastructure --Total Expenditures 49,106,388 $ 50,029,959 $ Schedule 8 Consolidated Expenditure Summary For the Year Ended December 31, 2003 Operating 76 Annual Report 2003 – District of Maple Ridge 76 2003 2003 2003 2003 Capital Capital Expenditures Expenditures Actual Budget Actual Budget Statement 2 Statement 2 Total Total 365,683 $ 1,230,656 $ 13,371,096 $ 14,696,541 $ 2,589,050 12,854,460 7,967,189 18,606,318 2,243,117 10,462,320 16,342,241 23,248,731 2,523,004 6,211,261 11,948,434 15,655,061 1,674,938 2,646,772 8,228,031 10,022,697 189,196 760,806 2,354,179 3,235,943 --(1,519,794) (1,269,057) 4,849,407 4,849,407 4,849,407 4,849,407 14,434,395 $ 39,015,682 $ 63,540,783 $ 89,045,641 $ Capital Consolidated Schedule 8 -continued 77 Annual Report 2003 – District of Maple Ridge 77 2003 2003 2002 Actual Budget Actual Common Services Supervision 76,400 $ 78,492 $ 75,364 $ Stores and clerical 419,946 393,916 370,976 Consulting fees 49,874 83,196 83,943 Trucks and heavy equipment maintenance 475,405 466,774 420,997 Gas and oil 178,039 218,458 214,237 Insurance 77,017 74,508 62,131 Small tools and equipment 44,707 41,117 30,540 Municipal yards maintenance 140,179 151,764 143,328 Total Common Services 1,461,567 1,508,225 1,401,516 Engineering Salary recoveries (528,983) (745,076) (699,428) Administrative 997,349 1,070,941 995,670 Technical support 591,754 736,380 552,606 Supplies 67,752 53,532 61,388 Vehicle costs 50,749 64,798 52,241 Total Engineering 1,178,621 1,180,575 962,477 Roads and Streets Maintenance Streets, lanes and sidewalks 1,178,662 1,410,288 1,147,808 Drains, ditches and culverts 285,006 298,855 255,582 Storm sewers 187,411 227,642 194,757 Snow removal and sanding 106,501 150,730 236,388 Total Roads and Streets Maintenance 1,757,580 2,087,515 1,834,535 Parking 21,727 23,292 17,169 Bridges 19,604 20,340 16,798 Street Lighting 346,002 362,061 305,065 Traffic Control Facilities 498,804 424,210 438,395 Subdivision Inspection 9,431 18,360 9,188 Interest Expenditures 84,803 127,280 106,030 Total Transportation Services 5,378,139 $ 5,751,858 $ 5,091,173 $ Schedule 9 The Corporation of the District of Maple Ridge Transportation Services For the Year Ended December 31, 2003 78 Annual Report 2003 – District of Maple Ridge 2003 2003 2002 Actual Budget Actual Administration, Personnel and Clerks' Departments 1,817,698 $ 2,223,823 $ 2,032,537 $ Communications Department and Public Relations 176,128 104,316 92,532 Finance Department 969,809 1,166,844 870,820 Information Services Department 608,945 609,732 629,494 Computer operations and telephone 423,615 642,168 595,366 Legislative 339,171 365,136 238,362 Grants and donations 161,540 34,080 80,754 Legal and audit fees 59,924 154,200 107,717 Advertising, printing and stationery 100,404 59,695 54,906 Municipal Hall maintenance and landscaping 408,505 331,944 328,296 Postage and office equipment maintenance 50,776 62,796 67,808 Travel and convention 5,607 11,196 48,463 Insurance 517,684 384,864 438,302 Miscellaneous and property rentals 435,902 821,144 429,409 Election 510 -49,250 Economic development 92,845 145,308 79,744 Interest Expenditure 384,030 258,679 402,445 Total General and Administrative Expenses 6,553,093 $ 7,375,925 $ 6,546,205 $ Schedule 10 The Corporation of the District of Maple Ridge General and Administrative Expenses For the Year Ended December 31, 2003 Annual Report 2003 – District of Maple Ridge 79 2003 2003 2002 Actual Budget Actual Police protection 9,155,308 $ 9,875,796 $ 8,826,068 $ Fire protection 2,227,141 1,976,178 1,936,357 Emergency measures 44,657 58,923 34,305 Building inspection 1,057,019 984,549 1,013,444 Animal control 208,594 228,199 204,609 By-law enforcement 312,694 342,240 258,644 Total Protective Services 13,005,413 $ 13,465,885 $ 12,273,427 $ Schedule 11 The Corporation of the District of Maple Ridge Schedule of Protective Services For the Year Ended December 31, 2003 80 Annual Report 2003 – District of Maple Ridge 2003 2003 2002 Actual Budget Actual Administration 1,070,159 $ 1,088,238 $ 1,038,900 $ Water distribution 1,271,467 1,267,176 1,278,677 Water purchases 2,376,605 2,349,996 2,191,525 Sewerage collection 630,747 666,496 548,993 Sewerage treatment 3,592,401 3,592,392 3,336,387 Interest expenditure 484,051 479,502 616,624 Total Sewer and Water Utilities 9,425,430 $ 9,443,800 $ 9,011,106 $ Schedule 12 The Corporation of the District of Maple Ridge For the Year Ended December 31, 2003 Schedule of Sewer and Water Utilities Annual Report 2003 – District of Maple Ridge 81 2003 2003 2003 2003 Actual Budget Actual Budget Revenue Revenue Expenditures Expenditures Leisure centre 1,223,267 $ 1,164,316 $ 1,775,720 $ 1,673,254 $ Ice sheet facilities 306,319 327,624 1,684,753 886,872 Programs 1,498,495 1,269,813 3,099,994 2,696,387 Arts and cultural 223,306 291,942 2,451,565 2,530,523 Parks, playgrounds, and other 459,929 468,639 1,764,467 1,835,522 Seniors' recreation centre 53,489 52,802 160,001 159,996 General and administrative expenses --1,053,499 956,562 Interest expenditure --2,109,125 2,047,295 Total -(Note 14) 3,764,805 $ 3,575,136 $ 14,099,124 $ 12,786,411 $ For the Year Ended December 31, 2003 Schedule 13 The Corporation of the District of Maple Ridge Schedule of Recreation & Cultural Revenue and Expenditures 82 Annual Report 2003 – District of Maple Ridge 82 2003 2003 2002 Actual Budget Actual Operating Operating Operating Deficit Deficit Deficit (552,453) $ (508,938) $ (549,202) $ (1,378,434) (559,248) (582,194) (1,601,499) (1,426,574) (1,384,894) (2,228,259) (2,238,581) (1,933,377) (1,304,538) (1,366,883) (1,257,263) (106,512) (107,194) (106,982) (1,053,499) (956,562) (1,046,847) (2,109,125) (2,047,295) (1,303,703) (10,334,319) $ (9,211,275) $ (8,164,462) $ Schedule 13 -continued 83 Annual Report 2003 – District of Maple Ridge 83 The Corporation of the District of Maple Ridge Balance Interest Dec.31, 2002 Allocated Reserve Funds: Local improvement 857,163 $ 12,303 $ Equipment replacement 3,899,599 152,033 Capital works 5,009,161 179,246 Fire department capital aquisitions 3,985,330 153,813 Sanitary sewer 2,153,275 78,577 Land 544,724 30,243 Total Reserve Funds 16,449,252 606,215 General Revenue Fund Reserve Accounts: Specific projects -Capital 2,833,491 -Specific projects -Operating --Self insurance 403,691 15,554 Police services 103,148 4,958 Core development 2,655,519 70,646 Recycling 716,873 30,474 Community development 955 34 Building inspections 439,505 15,307 Gravel extraction 413,739 14,863 Neighbourhood improvements 47,701 1,740 Recreation facility maintenance -3,498 Snow removal 200,000 -Youth Centre & Arts Centre 41,500 -Cemetery maintenance 137,999 -Service severance 63,630 -Total General Revenue Fund Reserve Accounts 8,057,751 157,074 Other Reserve Accounts: Sewer revenue fund-self insurance 86,084 -Sewer revenue fund-specific projects 621,998 -Water revenue fund-specific projects 751,490 -Water revenue fund-self insurance 54,028 -Total Other Reserve Accounts 1,513,600 -Total Reserves: 26,020,603 $ 763,289 $ For the Year Ended December 31, 2003 Schedule 14 Continuity Schedule of Reserves 84 Annual Report 2003 – District of Maple Ridge 84 Intra-Reserve Transfers Transfers Balance Transfers Revenue Funds Capital Funds Dec.31, 2003 -$ 187,913 $ 4,994 $ 1,062,373 $ -1,558,208 (753,768) 4,856,072 -540,971 (1,563,415) 4,165,963 -913,948 (154,526) 4,898,565 ---2,231,852 -341,561 (5,368) 911,160 -3,542,601 (2,472,083) 18,125,985 (553,204) 1,704,576 (727,949) 3,256,914 553,204 1,241,139 -1,794,343 -257,020 -676,265 -451,001 -559,107 -(1,199,400) -1,526,765 -261,473 (189,197) 819,623 ---989 -(40,000) -414,812 -(3,446) (4,683) 420,473 ---49,441 -(3,498) -----200,000 ---41,500 -(4,831) -133,168 ---63,630 -2,664,034 (921,829) 9,957,030 -6,501 -92,585 -269,106 (410,094) 481,010 -783,422 (376,943) 1,157,969 -6,500 -60,528 -1,065,529 (787,037) 1,792,092 -$ 7,272,164 $ (4,180,949) $ 29,875,107 $ Schedule 14 -continued 85 Annual Report 2003 – District of Maple Ridge 85 Annual Report 2003 – District of Maple Ridge 86 This Page Left Blank Intentionally Annual Report 2003 – District of Maple Ridge 87 Annual Report 2003 – District of Maple Ridge 88 This Page Left Blank Intentionally 2003 2002 Cash and Term Deposits 188,289 $ 186,053 $ Total Assets 188,289 $ 186,053 $ Liabilities: Accounts Payable and Accrued Liabilities 293 $ 404 $ Stockholders' Equity: Capital Stock Authorized 10,000 common shares NPV Issued and fully paid -2 common shares 2 2 Retained Earnings 16,610 14,263 Contributed Surplus 171,384 171,384 Total Liabilities and Stockholders' Equity 188,289 $ 186,053 $ Approved By The Directors: Director Director * The accompanying notes are an integral part of the financial statements Liabilities and Stockholders' Equity C.D.M.R. Developments Ltd. Balance Sheet As at December 31, 2003 Assets Annual Report 2003 – District of Maple Ridge 89 2003 2002 Interest Income 3,286 $ 889 $ Miscellaneous Expenses 939 164 Net Earnings 2,347 725 Retained Earnings Beginning of the Year 14,263 13,538 Retained Earnings End of the Year 16,610 $ 14,263 $ C.D.M.R Developments Ltd. Statement of Revenue, Expenses and Retained Earnings For the Year Ended December 31, 2003 90 Annual Report 2003 – District of Maple Ridge 2003 2002 Cash flows from operating activities: Net Earnings 2,347 $ 725 $ Changes in non-cash operating working capital: Decrease in accounts receivable -117 Increase (Decrease) in accounts payable and accrued liabilities (111) 164 (111) 281 Increase in cash and cash equivalents 2,236 1,006 Cash and cash equivalents -Beginning of year 186,053 185,047 Cash and cash equivalents -End of year 188,289 $ 186,053 $ Cash and cash equivalents are defined as cash and term deposits. Supplementary information: Interest received 3,286 $ 889 $ C.D.M.R Developments Ltd. Statement of Cash Flows For the Year Ended December 31, 2003 Annual Report 2003 – District of Maple Ridge 91 Notes to the Financial Statements For the Year Ended December 31, 3002 Annual Report 2003 – District of Maple Ridge 92 The Company is incorporated under the Company Act (British Columbia). The Company has the authority to acquire and develop properties on behalf of the Corporation of the District of Maple Ridge. These properties may be acquired from or sold to the Corporation of the District of Maple Ridge. 1. Significant Accounting Policy: Income Taxes The Company is exempt from income taxes, as it is wholly owned by the Corporation of the District of Maple Ridge. (Income Tax Act, Section 149(1)(d)). 2. Financial Instruments The Company’s financial instruments consist of cash and term deposits and accounts payable and accrued liabilities. Unless otherwise noted, it is management’s opinion that the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments. The fair values of these financial instruments approximate their carrying values, unless otherwise noted. The Company’s bank accounts are held at one chartered bank. General Comparative Statistics Annual Report 2003 – District of Maple Ridge 93 2003 2002 2001 2000 1999 1993 Municipal Government Form: Mayor and 6 Council Members Incorporated September 12, 1874 Population 1 * 71,399 68,527 (cen) 63,169 65,500 62,544 53,136 Registered Voters 2 34,177 (act) 34,177 30,500 30,500 (act) 30,000 28,462 Area (Ha) 1 26,710 26,710 26,710 26,710 26,710 26,710 No. of Properties (Folios) 3 23,788 23,185 23,347 22,653 22,205 18,226 * BC Stats Designated Land Use (in Ha) (Official Community Plan) 1 * Residential 5,019 5,159 5,828 5,819 5,256 5,731 Agricultural 3,551 3,711 3,713 3,708 3,713 3,777 Industry 541 584 584 584 584 863 Schools/Park/Greenbelt 2,254 2,056 1,785 1,781 1,786 1,084 Institutional 215 249 236 236 236 260 Transportation/Utilities 214 274 274 274 273 154 Crown Land 14,108 14,108 14,108 14,108 14,688 14,716 * New Method of Reporting Roads (in Km) 4 Paved 438 435 431 443 411 381 Unpaved 7 7 7 7 8 24 Sewer Lines (in Km) 4 Sanitary 253 250 246 235 221 182 Storm 216 213 211 205 164 123 Water Lines (in Km) 4 339 336 335 331 322 285 Parks Area (in Ha) 5 (Number of Parks in Brackets) Municipal (45) 205 (45) 205 (45) 205 (45) 205 (45) 205 (41) 192 Regional ( 2) 414 ( 2) 414 ( 2) 414 ( 2) 414 ( 1) 405 ( 1) 405 Provincial ( 1) 55,596 ( 1) 55,596 ( 1) 55,596 ( 1) 55,596 ( 1) 55,554 ( 1) 55,554 (11,700 ha are within Municipal boundary) Number of Schools 7 Elementary Schools 20 20 20 21 21 21 Special Education Schools 1 1 1 1 1 1 Secondary Schools 4 4 4 4 4 4 Private Schools 4 4 4 4 4 4 Preschools 20 23 13 18 22 11 Day Care Centres 75 84 107 93 93 49 Continuing Education Facilities 3 4 4 3 3 1 Municipal Full-Time Employees 6 233 234 233 239 248 217 Total Part Time Hours 134,773 145,105 128,042 118,958 n/a n/a * Total includes full-time equivalent employees. Building Permits 7 Total Issued 1,025 1,072 825 856 875 1,109 Value $113,296,000 $126,612,466 $83,895,058 $87,857,857 $84,271,013 $96,612,218 Business Licences Issued 7 3,372 3,218 2,973 2,662 3,028 2,019 Dog Licences Issued 3 7,755 6,970 7,318 7,218 7,248 5,921 General Comparative Statistics Annual Report 2003 – District of Maple Ridge 94 2003 2002 2001 2000 1999 1993 Police 8 Buildings 3 3 3 1 1 1 Police Officers 72 68 68 68 66 62 Auxiliary Police Officers 28 26 29 13 14 16 Fire Personnel: 9 2 Fire Chiefs/Directors 4 Asst. Fire Chiefs Volunteers: -Hall #1 44 41 44 50 53 47 -Hall #2 17 21 17 30 29 23 -Hall #3 24 23 26 30 30 22 Summary of Fund Balances 3 Funded Reserves $29,875,107 $26,020,603 $31,457,559 $35,905,675 $34,063,241 $18,087,497 Capital Fund (2,792,681) (2,400,656) (8,296,942) (14,134,857) (7,735,355) 7,491,013 Operating Surplus ** 17,078,396 17,600,579 18,018,089 16,890,646 11,000,872 6,605,833 Total Surplus and Reserves $44,160,822 $41,220,526 $41,178,706 $38,661,464 $37,328,758 $32,184,343 Long Term Debt 3 Parks & Recreation $27,573,430 $28,100,629 $17,445,602 $ 6,178,753 $ 1,868,827 $ 1,759,590 Public Works 804,931 964,768 1,158,141 1,386,202 1,907,141 4,326,528 General Government 3,519,280 3,585,316 3,649,616 1,411,878 213,038 — Total General Fund $31,897,631 $32,650,713 $22,253,359 $ 8,976,833 $ 3,307,006 $ 6,086,118 Waterworks Utility $ 714,440 $ 1,198,564 $ 1,654,176 $ 2,827,825 $ 3,325,537 $ 5,442,312 Sanitary Sewer Utility 1,633,054 2,309,361 3,292,855 4,252,629 5,136,965 9,332,403 Total Gross Debt $34,245,135 $36,158,638 $27,200,390 $16,057,287 $11,776,508 $20,860,833 Legal Debt Limit 3 n/a n/a $136,647,934 $149,085,291 $142,141,745 $86,340,702 Debt Per Capita 3 $ 480 $ 528 $ 431 $ 245 $ 188 $ 394 Debt Payment as a Percentage of Non Capital Expenditures 3 Debt Payments -Gross 9.8% 9.9% 11.3% 10.1% 10.4% 16.6% 1 Maple Ridge Planning Department 2 Maple Ridge Municipal Clerk 3 Maple Ridge Finance Department 4 Maple Ridge Engineering Department 5 Maple Ridge Parks & Leisure Services Department 6 Maple Ridge Communications & Human Resources Department 7 Maple Ridge Licenses, Permits & Bylaws Department 8 Ridge-Meadows RCMP 9 Maple Ridge Fire Department **There were changes in accounting methods for receivables and long term debt applied to 2000. Demographics Annual Report 2003 – District of Maple Ridge 95 0 2,000 4,000 6,000 8,000 10,000 12,000 0 -4 years 5 -14 years 15 -19 years 20 -24 years 25 -44 years 45 -54 years 55 -64 years 65 -74 years 75 -84 years 85 + years Male Female Population by Age (2001 Census) 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Households with Couple (Married or Common-Law) with Children Households with Couple (Married or Common-Law) without Children One-Person Households Other Household Types Household Composition (2001 Census) 0 1000 2000 3000 4000 5000 6000 7000 8000 <$10,000 $10,000 -$19,999 $20,000 -$29,999 $30,000 -$39,999 $40,000 -$49,999 $50,000 -$59,999 $60,000 -$69,999 $70,000 + 1996 2001 Household Income (2001 Census) Major Property Tax Payers Annual Report 2003 – District of Maple Ridge 96 Registered Owner Primary Property Taxes Levied 1. B.C. Hydro & Power Authority Distribution Lines $844,995 2. International Forest Products Ltd. Lumber Mills 768,452 3. Province of British Columbia Court House/Prison 704,983* 4. Sun Life Assurance Company of Canada Westgate Shopping Centre 678,685 5. Bucci Investment Corporation Inc Valley Fair Mall 622,947 6. MRTC Tower Properties Town Centre Office Tower 529,306 7. Amarsham Holdings Ltd. Haney Place Mall 491,433 8. Telus Communications (BC) Inc Poles, Lines/Thornhill Tower 380,063 9. M R Landmark 2000 Centre Ltd Landmark Shopping Centre 366,754 10. B.C. Gas Utility Ltd. Gas Lines 292,328 11. E-One Moli Energy (Canada) Limited 20000 Stewart Cres. 255,084 12. 22475 Dewdney Trunk Road Inc. Maple Ridge Square 222,928 13. Canadian Pacific Railway Co. Railway Tracks 216,079 14. Damka Lumber & Development Ltd. Meadow Ridge Shopping Centre 183,525 15. Individual Car Dealership 174,832 16. Canadian Tire Real Estate Limited Retail Store 169,302 17. Individual Shopping Centre 120,131 18. 27222 Developments Ltd. Yacht Manufacturing 119,394 19. Royal Canadian Legion Apartments 119,286 20. Marine Way Industries Inc. Lumber Re-manufacturing 113,588 21. Hearthstone Holdings Nursing Home 110,600 22. 648504 B.C. Limited Storage/Warehousing 110,205 * This is a grant-in-lieu for Municipal and Regional District purpose taxes only. An estimate of total taxes to be comparable would be approximately $1,329,406 Assessment/Taxation Comparative Statistics Annual Report 2003 – District of Maple Ridge 97 2003 2002 2001 2000 1999 1993 Assessment for General Taxation (1) Land $3,157,399,417 $2,893,505,637 $2,834,911,228 $2,823,385,835 $2,835,594,449 $1,889,619,280 Less: Exempt Land 327,780,953 316,593,785 292,129,201 287,544,803 291,479,505 191,393,186 Net Land Assessment $2,829,618,464 $2,576,911,852 $2,542,782,027 $2,535,841,032 $2,544,114,944 $1,698,226,094 Improvements $2,829,346,041 $2,471,475,641 $2,406,777,940 $2,358,152,690 $2,306,186,498 1,645,372,920 Less: Exempt Imp & Utilities 315,123,146 309,294,304 314,353,484 295,146,705 296,425,810 181,536,601 Net Improvement Assessment $2,514,222,895 $2,162,181,337 $2,092,424,456 $2,063,005,985 $2,009,760,688 $1,463,836,319 Total Taxable Assessment $5,343,841,359 $4,739,093,189 $4,635,206,483 $4,598,847,017 $4,553,875,632 $3,162,062,413 Assessment for School Taxation (1) Total Taxable Assessment $5,321,328,859 $4,704,437,907 $4,590,475,481 $4,549,936,383 $4,505,278,618 $3,138,550,980 General & Debt Tax Rates (per $1,000) (2) Residential $ 4.8354 $ 5.1622 $ 4.9791 $ 4.6996 $ 4.3908 $ 4.5500 Utilities 40.0000 39.9999 40.0000 40.0000 40.0000 26.1260 Industrial 52.3140 47.8372 46.0814 42.8297 40.3311 34.0380 Business/Other 13.6855 13.0083 12.6073 12.0041 11.2255 13.2250 Seasonal/Recreational 10.8809 10.2821 9.8114 9.2973 8.4878 8.9710 Farm 15.6020 14.9770 14.4850 13.8453 13.0093 10.7150 School Tax Rate (per $1,000) (1) Residential $ 3.6727 $ 3.9475 $ 3.9122 $ 3.9076 $ 3.8407 $ 4.4572 Utilities 15.0000 15.0000 15.0000 15.0000 15.0000 15.6000 Industrial 12.5000 12.5000 12.5000 12.5000 12.5000 12.7000 Business/Other 9.9000 9.9000 9.9000 9.9000 9.9000 10.2000 Seasonal/Recreational 4.5000 4.5000 4.5000 4.5000 4.5000 4.3000 Farm 6.8000 6.8000 6.8000 6.8000 6.8000 7.0000 Residential Tax Rate (per $1,000) (2) General (incl. Reg. Library) $ 4.7824 $ 5.1038 $ 4.9087 $ 4.6256 $ 4.2807 $ 4.3940 Debt .0530 .0584 .0704 .0740 .1101 .1560 Transit Authority (GVTA) .2874 .2874 .2095 .2096 .2097 — Local School Levy 3.6727 3.9475 3.9122 3.9076 3.8407 4.4572 Regional Hospital — — — — — .3390 Regional District .1038 .1083 .1109 .1113 .1149 .0543 Municipal Finance Authority .0003 .0003 .0003 .0003 .0003 .0003 B.C. Assessment Authority .1159 .1245 .1267 .1271 .1247 .1451 $ 9.0155 $ 9.6302 $ 9.3387 $ 9.0555 $ 8.6811 $ 9.6069 Utilities & Penalties Current Years Levy $69,738,023 $65,465,815 $63,057,918 $60,601,071 $57,263,723 $43,239,988 Per Capita $ 977 $ 955 $ 998 $ 925 $ 916 $ 816 Collections $67,185,946 $62,796,422 $61,689,009 $59,280,901 $56,049,302 $41,967,221 Percent of Levy 96.34% 95.92% 97.83% 97.82% 97.88% 97.06% Gross Tax Collections $70,208,081 $66,238,488 $63,248,661 $60,720,312 $57,224,362 $43,849,009 Percent of Current Levy 100.67% 101.18% 100.30% 100.20% 99.93% 101.41% Taxes Outstanding $ 3,472,125 $ 1,896,348 $ 2,748,666 $ 2,574,299 $ 2,348,882 $ 1,816,682 Note: 1 Effective in 1983, actual value assessments were used in determining tax levies for general Municipal purposes and effective in 1984 for School purposes, pursuant to the policy of the Province of British Columbia. 2 Variable tax rates were established in 1983 for different classes of property pursuant to the policy of the Province of British Columbia for Municipal Government services and 1984 for all other Government Levies. Property Assessments & Tax Rates By Property Class Annual Report 2003 – District of Maple Ridge 98 Major Light Business Seasonal Residential Utilities Industrial Industrial Other Recreational Farm Analysis of 2003 Taxable Values For General Purposes ($ in 1,000's) $4,833,430 $ 9,080 $ 12,013 $ 68,195 $ 414,710 $ 1,260 $ 5,659 Percentage of Taxable Values 90.44% .17% .22% 1.28% 7.76% .02% .11% Percentage of General Taxation 75.00% 1.17% 2.02% 3.29% 18.21% .04% .28% Analysis of 2003 Rates (Per $1,000) General $ 4.5260 $37.7128 $48.3906 $13.8039 $12.8012 $10.1747 $14.5931 Debt .0530 .4686 .5695 .1625 .1499 .1191 .1701 Library .2564 1.8186 3.3539 1.0745 .7344 .5871 .8375 School 3.6727 15.0000 12.5000 9.9000 9.9000 4.5000 6.8001 B.C. Assessment Authority .1159 .5947 .5947 .3245 .3245 .1159 .1159 Municipal Finance Authority .0003 .0005 .0005 .0005 .0001 .0002 .0002 Regional District & 911 Emergency .1038 .3633 .3529 .3529 .2543 .1038 .1038 Transit Authority .2874 2.3802 2.3138 2.3138 1.6657 .2874 .2874 $ 9.0155 $58.3387 $68.0759 $27.9326 $25.8301 $15.8882 $22.9081 * Note: Properties are categorized into 9 different classes for assessment and taxation purposes. The District of Maple Ridge has no properties within classes 3 (Forestry) and 7 (Tree Farm). Expenditures Last Five Fiscal Years Comparison Annual Report 2003 – District of Maple Ridge 99 2003 2002 2001 2000 1999 Analysis by Function Protective Services $13,371,096 $13,054,780 $10,615,809 $10,799,688 $11,127,218 Transportation Services 7,967,189 8,768,917 8,547,740 9,468,587 9,294,174 Recreation and Cultural 16,342,241 26,253,448 24,866,056 27,403,512 14,001,456 Sewer and Water Utilities 11,948,434 11,343,504 10,034,204 11,252,276 10,568,946 General Government Services 8,228,031 8,225,042 8,865,297 8,726,522 9,480,051 Other Services 2,354,179 2,160,444 1,852,946 2,386,870 1,667,695 Internal Cost Reallocations (1,519,794) (1,222,229) (1,301,348) (1,233,073) (1,104,567) Contributed Subdivision Infrastructure 4,849,407 1,663,909 3,629,494 6,741,247 6,363,458 $63,540,783 $70,247,815 $67,110,198 $75,545,629 $61,398,431 Analysis by Object Goods and Services $36,709,464 $47,467,142 $44,804,134 — — Wages and Salaries 18,919,903 18,687,962 16,772,339 — — Interest and Financing Fees 3,062,009 2,428,802 1,904,231 — — Contributed Subdivision Infrastructure 4,849,407 1,663,909 3,629,494 — — $63,540,783 $70,247,815 $67,110,198 Reporting was changed in 2001 – 2002 The comparative object costs were not available for 1998 – 2000 Capital Assets Acquired Last Five Fiscal Years Comparison Annual Report 2003 – District of Maple Ridge 100 2003 2002 2001 2000 1999 Capital Acquisitions General Government $ 1,674,938 $ 1,678,837 $ 3,114,551 $ 2,998,545 $ 3,649,772 Transportation 2,589,050 3,677,744 3,674,356 4,723,382 4,588,552 Parks and Recreation 2,243,117 14,486,206 16,457,033 19,813,172 6,955,561 Protective Services 365,683 781,353 106,972 192,868 575,773 Public Health and Other 189,196 — 5,705 603,925 79,782 Sanitary Sewer & Waterworks 2,523,004 2,332,398 1,608,854 2,963,518 2,697,535 Subdivision Infrastructure 4,849,407 1,663,909 3,629,494 6,741,247 6,363,458 Total Capital Acquisitions $14,434,395 $24,620,447 $28,596,965 $38,036,657 $24,910,433 Source of Financing Revenue Funds $ 2,318,453 $ 1,717,843 $ 2,543,160 $ 1,694,958 $ 1,578,634 Reserve Funds 4,180,949 5,148,182 6,578,254 14,476,455 6,363,940 Contributed Assets 5,848,693 2,905,648 4,322,718 8,292,481 13,714,836 Long Term Debt — 11,095,834 13,922,339 — 227,086 Grants 1,129,375 2,639,864 (133,368) 2,309,389 267,444 Development Fees & Other 956,925 1,113,076 1,363,862 6,050,351 2,759,003 Total Financing $14,434,395 $24,620,447 $28,596,965 $38,036,657 $24,910,943 District of Maple Ridge Map The Corporation of the District of Maple Ridge Phone: 604-463-5221 11995 Haney Place Fax: 604-467-7329 Maple Ridge, B.C. V2X 6A9 www.mapleridge.org