Agenda Finance CommitteeFIN-95 See Page FIN-95 for full report Designated Speaker: Jerry Chong STAFF RECOMMENDATION That the staff report titled 2012 Annual Development Cost Charges

FIN – 1 3868813

Agenda

Finance Committee

Anderson Room, City Hall 6911 No. 3 Road

Monday, June 3, 2013 Immediately Following the Open General Purposes Committee meeting Pg. # ITEM

MINUTES FIN-3 Motion to adopt the minutes of the meeting of the Finance Committee held

on Monday, May 6, 2013.

FINANCE AND CORPORATE SERVICES DEPARTMENT 1. 2012 ANNUAL REPORT AND 2012 ANNUAL REPORT –

HIGHLIGHTS (File Ref. No.) (REDMS No. 3859378)

FIN-7 See Page FIN-7 for full report

Designated Speakers: Jerry Chong & Ted Townsend

STAFF RECOMMENDATION

That the City of Richmond 2012 Annual Report and the 2012 Annual Report – Highlights be approved.

2. REVENUE ANTICIPATION BORROWING (2013) BYLAW NO. 9020

(File Ref. No. 12-8060-20-9020; 03-0900-01) (REDMS No. 3828708)


Designated Speaker: Jerry Chong

Finance Committee Agenda – Monday, June 3, 2013 Pg. # ITEM

FIN – 2


That Revenue Anticipation Borrowing (2013) Bylaw No. 9020 be introduced and given first, second, and third readings.

3. 2012 ANNUAL DEVELOPMENT COST CHARGES

(File Ref. No. 03-0900-01) (REDMS No. 3828936)


Designated Speaker: Jerry Chong


That the staff report titled 2012 Annual Development Cost Charges (from the Director, Finance, dated May 1, 2013) be received for information.

RICHMOND OLYMPIC OVAL CORPORATION 4. RICHMOND OLYMPIC OVAL CORPORATION – 1ST QUARTER

2013 FINANCIAL INFORMATION (File Ref. No.) (REDMS No. 3865648)


Designated Speakers: John Mills & Andrew Nazareth


That the report on the 1st Quarter 2013 Financial Information for the Richmond Olympic Oval Corporation from the Controller of the Richmond Olympic Oval Corporation be received for information.

ADJOURNMENT

Date:

Place:

Present:

Absent:

City of Richmond

Finance Committee

Monday, May 6, 2013

Anderson Room Richmond City Hall

Councillor Linda Barnes, Acting Chair Councillor Derek Dang Councillor Evelina Halsey-Brandt Councillor Ken Johnston Councillor Bill McNulty Councillor Linda McPhail Councillor Harold Steves

Mayor Malcolm D. Brodie Councillor Chak Au

Minutes

Call to Order: The Chair called the meeting to order at 4:17 p.m.

3855036

MINUTES

It was moved and seconded That the minutes of the meeting of the Finance Committee held on Monday, March 4, 2013, be adopted as circulated.

CARRIED

DELEGATION

1. C.J. James, Partner, accompanied by Archie Johnston, Partner, KPMG, were available to answer questions related to the 2012 Auditor' s report on the City'S financial statements. Ms. James thanked City staff for their efficiency in compiling the City's financial statements.

1.

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Finance Committee Monday, May 6, 2013

It was moved and seconded

That the 2012 Auditor's report on the City's financial statements be received for information.

CARRIED

RICHMOND OLYMPIC OVAL CORPORATION

2. 2012 FINANCIAL STATEMENTS FOR THE RICHMOND OLYMPIC OVAL CORPORATION (File Ref. No.) (REDMS No. 3833427)

Andrew Nazareth, General Manager, Finance and Corporate Services introduced Rick Dusanj, Controller, Richmond Olympic Oval Corporation, and then provided highlights of the 2012 Financial Statements for the Richmond Olympic Oval Corporation.

A discussion then ensued about:

• the vacancy rate for of commercial leasing space at the Richmond Olympic Oval. It was noted that due to the demand for programming space at the Oval, the preference has been to hold back on leasing out the approximate 5000 square feet of remaining leasing space;

• the increase in the full-time staff complement at the Oval as a result of increased programming which includes the batting cages, the climbing wall and the high performance space, all of which generate revenue and cover the cost of the additional staff;

• salaries, benefits and expenses that were charged to the City in 2012 relating to the costs of the Oval Corporation's staff time and services performed for the City; and

• the financial support received by the Oval Corporation from the City of Richmond as well as the Games Operating Trust Fund.

That the report on the 2012 Financial Statements and Independent Auditor's report for the Richmond Olympic Oval Corporation from the Controller of the Richmond Olympic Oval Corporation be received for information.

CARRIED

2. FIN - 4


FINANCE AND CORPORATE SERVICES DEPARTMENT

3. 2012 CONSOLIDATED FINANCIAL STATEMENTS (File Ref. No. 03-0905-01) (REDMS No. 3838377 v.2)

Andrew Nazareth, General Manager, Finance and Corporate Services accompanied by Jerry Chong, Director, Finance, provided highlights of the 2012 Consolidated Financial Statements.

A brief discussion then ensued about:

• the management of the City's financial contribution to the Richmond Olympic Oval Corporation and how it is represented in the Financial Statements; and

• the City's Long Term Financial Plan, in particular, how the City can reduce its reliance on revenues received via property taxes and increase other revenue streams. Staff were requested to track the trends relating to other revenue streams to see whether any progress has been made in this regard.

During the discussion, it was noted that RCMP calls for service was trending downwards. Staff were requested to provide information at the next Community Safety Committee meeting on whether the RCMP staff complement is determined based on population or on calls for service.

It was moved and seconded That the City's audited consolidated financial statements for the year ended December 31,2012 be approved.

CARRIED

4. FINANCIAL INFORMATION _1ST QUARTER MARCH 31,2013 (File Ref. No.) (REDMS No. 38333554)

It was moved and seconded That the staff report titled Financial Information - 1st Quarter March 31, 2013 dated April 12, 2013 from the Director, Finance be received for information.

CARRIED

ADJOURNMENT

It was moved and seconded That the meeting adjourn (4:52 p.m.).

CARRIED

3. FIN - 5

Councillor Linda Barnes Acting Chair


Certified a true and correct copy of the Minutes of the meeting of the Finance Committee of the Council of the City of Richmond held on Monday, May 6, 2013.

Shanan Sarbjit Dhaliwal Executive Assistant City Clerk's Office

4. FIN - 6

City of Richmond Report to Committee

To:

From:

Re:

Finance Committee Date: May 9, 2013

Andrew Nazareth File: General Manager, Finance and Corporate Services 2012 Annual Report and 2012 Annual Report - Highlights

Staff Recommendation

That the attached City of Richmond 2012 Annual Report and the 2012 Annual Report -Highlights be approved. .

~~ Andrew Nazareth General Manager, Finance and Corporate Services Department (4095)

Att.

REPORT CONCURRENCE

CONCURRENCE OF GENERAL MANAGER

~-----<-

REVIEWED BY DIRECTORS

REVIEWED BY CAO

3859378

INITIALS:

b\.0

6~ ~

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May 13,2013 - 2 -

Staff Report

Origin

Pursuant to Section 98 of the Community Charter, before June 30 in each year, a Council must

a) Prepare an annual report

b) Make the report available for public inspection

c) Make the report available for public inspection at a Councilor other public meeting

Analysis

The City of Richmond's annual reports follow the award-winning format from the last number of years in which two versions of the report are prepared. The reports document the strong financial position achieved by the City under Council's leadership and direction and include statistical information related to key financial, economic and demographic indicators. The report also highlights many of the City's significant achievements from 2012, in both delivery of basic civic services and in support of Council's Term Goals and Objectives.

The first version is the comprehensive 2012 Annual Report which meets all legislative requirements. This version will be publicly available through the City's website and printed only on an exception basis. The comprehensive version includes the City's audited consolidated financial statements, the City's corporate objectives and success indicators, as identified through Council's Term Goals and Objectives, and a listing of permissive exemptions as required under the Community Charter for British Columbia's local governments. In addition to the statutorily required information, the comprehensive version provides information on City milestones from 2012, including awards and achievements, as well as relevant statistical data.

The second version is the popular financial report, titled 2012 Annual Report - Highlights. It has been prepared to inform the general public about the City of Richmond, its services, highlights from 2012 and the City's financial condition. Copies of this simplified version will be mailed out and made available for the general public in hard copy at Richmond City Hall, Front of House and on our website.

The annual reports are useful tools in ensuring public transparency and accountability in the management ofthe City's finances, while serving as a record of our achievements during the reporting period.

Financial Impact

None.

Conclusion

The City of Richmond 2012 Annual Report and the 2012 Annual Report - Highlights satisfy Community Charter requirements for financial reporting and provide important tools in ensuring

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May 13,2013 - 3 -

public transparency and accountability for the management of City finances. The reports also

~.~~de.~~.~:{;ormation on the City's achievements d~ng the ,2012 fiscal year.

/~etv \~ \~~ i&ry ~ong Ted Townsend Director, Finance Senior Manager, Corporate Communications (4064) (4399)

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2012 Annual ReportFor the year ended December 31, 2012British Columbia, Canada

City ofRichmond

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The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Canadian Award for Financial Reporting to the City of Richmond for its annual financial report for the fiscal year ended December 31, 2011. 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 the 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 governments, 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 the GFOA.

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1City of Richmond 2012 Annual Report

ContentsIntroductory sectionMessage from the Mayor ..................................................................................................................... 2Richmond City Council ......................................................................................................................... 3City of Richmond Organizational Chart ................................................................................................ 4Message from the Chief Administrative Officer .................................................................................... 52012 awards ........................................................................................................................................ 7Council Term Goals and Objectives: 2011 to 2014 ............................................................................... 82012 key accomplishments ................................................................................................................ 10Report from the General Manager, Finance and Corporate Services .................................................... 12

Financial sectionCity of Richmond audited financial statements ................................................................................... 13

Statistical sectionCity of Richmond statistical data ........................................................................................................ 39

Tax exemption section2012 permissive property tax exemptions ........................................................................................... 552012 city centre area transitional tax exemptions ............................................................................... 59

City of Richmond contacts ................................................................................................................. 60

Our vision is to be the most appealing, livableand well-managed community in Canada

Cover photo: The City of Richmond won the prestigious Innovation Award from the World Leisure Organization in 2012 for its development of Terra Nova Rural Park. It’s the sixth major award the City has received since 2007 for Terra Nova Rural Park, including provincial, national and international honours.

This report was prepared by the City of Richmond Finance and Corporate Services Department and Corporate Communications Office. Design, layout and production was done by the City of Richmond Production Centre. ©2013 City of Richmond

Contents printed on Canadian made, 100% recycled stock, using environmentally friendly toners.

2012 Annual ReportFor the year ended December 31, 2012British Columbia, Canada

City ofRichmond

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Message from the Mayor2012 was another year of milestones for the City of Richmond. We continued to innovatively meet the needs of our community today, while laying the groundwork for a sustainable future.

A major achievement was Council’s adoption of our new Official Community Plan (OCP). Three years in the making and titled Moving Towards Sustainability, it is our most comprehensive OCP yet. It sets the vision for future growth and land use decisions as well as providing strategies to address economic, social, cultural and environmental challenges.

Transportation is a major focus of the new OCP. As our City grows we will need rapid transit to play an even greater role in supporting

community mobility. In 2012, we executed an agreement with TransLink to eventually build an additional Canada Line station at Capstan Way. This agreement will see new development in the area funding the costs of the station construction and is expected to be a model for future station development across the region.

Another critical need for our growing population is new park and recreational space. Over the past few years, Council has invested about $80 million to support our community’s emerging needs for such land. In 2012, in partnership with Ducks Unlimited, the City acquired the 51-hectare (127-acre) Grauer lands along our western foreshore. This important habitat will ultimately become a natural reserve and park. Council also approved a process for planning the future of the Garden City Lands, a critical 55-hectare (136-acre) parcel of land on the edge of our City Centre.

As a gateway to the Asia Pacific and one of Canada’s most culturally diverse cities, Richmond is uniquely positioned to benefit from the economic emergence of this area of the world. This past year, Richmond took an important step in our economic and cultural development by formally becoming a Sister City of Xiamen, China.

Another highlight from 2012 was Richmond being awarded the prestigious World Leisure Organization Innovation Award for development of Terra Nova Rural Park, the sixth major award won for this extraordinary project.

As always, our accomplishments and our planning involved hard work by a committed team, including City Council and staff and our many partners. I thank everyone who has supported our efforts to preserve and build upon Richmond’s reputation as one of Canada’s most livable cities.

Please feel free to contact the Mayor’s Office at any time to discuss or comment on any of the information contained in this Annual Report.

Malcolm BrodieMayor, City of Richmond

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Richmond City Council

Front row, left to right: Councillor Linda Barnes, Councillor Bill McNulty, Mayor Malcolm Brodie, Councillor Linda McPhail, Councillor Harold Steves

Back row, left to right:Captain Dave Cullen, Richmond Fire-Rescue (retired), Councillor Chak Au, Councillor Derek Dang, Councillor Evelina Halsey-Brandt, Councillor Ken Johnston, Constable Melissa Lui, Richmond RCMP

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City of Richmond organizational chartChief Administrative Offi ce

George Duncan, CAO

Deputy Chief Administrative Office

Joe Erceg, Deputy CAO

Community Services Engineering and Public Works Finance and Corporate Services

Dave Semple, GM

Cathy Volkering Carlile, GM

Robert Gonzalez, GM Andrew Nazareth, GM

Law and Community Safety Planning and Development

Phyllis Carlyle, GM Joe Erceg, GM

Civic offi cials as at December 31, 2012Chief Administrative Officer ....................................................... George DuncanDeputy Chief Administrative Officer ........................................... Joe Erceg General Manager, Community Services ...................................... Cathy Volkering CarlileGeneral Manager, Community Services ...................................... Dave SempleGeneral Manager, Engineering and Public Works ....................... Robert GonzalezGeneral Manager, Finance and Corporate Services ..................... Andrew NazarethGeneral Manager, Law and Community Safety ........................... Phyllis CarlyleGeneral Manager, Planning and Development ............................ Joe ErcegDirector, City Clerk’s Office ......................................................... David WeberCity Solicitor .............................................................................. Doug LongChief, Richmond Fire-Rescue ...................................................... John McGowanOfficer in Charge, Royal Canadian Mounted Police .................... Rendall NessettChief Operating Officer, Richmond Olympic Oval ....................... John MillsChief Librarian, Richmond Public Library ..................................... Greg Buss

Banker AuditorsScotiabank KPMG

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Message from the ChiefAdministrative Offi cer

I am pleased to present the City of Richmond’s 2012 Annual Report. This past year, the City Administration undertook a number of key initiatives in support of fulfilling Council’s Term Goals and Objectives and our corporate vision.

The City of Richmond is entering a period of sustained growth, which will see our community grow from just over 200,000 at present to 285,000 by the year 2041. A major focus for the City is planning and managing for this growth, so that meeting the needs of new residents and businesses will not negatively impact those who already reside in Richmond, and thus ensure that the outstanding quality of life in the City is sustainable.

In 2012, this focus was reflected in Council’s adoption of an updated Official Community Plan (OCP). The most comprehensive OCP ever adopted by Richmond, it provides a framework for the future of development of our community, covering everything from land use and transportation policy to development of our arts and cultural and heritage sectors. The OCP is supported by a number of other major strategies from our Sustainability Framework to our innovative City Centre Area Plan, both which will ensure we are prepared for the future.

A key Council goal is the further development of Richmond as a tourist destination. In 2012, the City, Tourism Richmond, local hotel operators and the Province of BC reached a five-year agreement to renew the Richmond 2 per cent hotel room tax and extend the role of Tourism Richmond as the City’s choice for a tourism service provider. As part of this agreement, some of the revenue generated through the 2 per cent hotel tax will be utilized to support both the Richmond Olympic Experience project and the City’s Sport Hosting function. The Richmond Olympic Experience is an exciting new tourist attraction that will open at the Richmond Olympic Oval in the fall of 2014. The Richmond Olympic Experience will provide both economic and social benefits to our community.

During 2012, a number of internal organizational changes were completed to help us meet current and emerging needs and priorities. These organizational transitions are designed to keep Richmond at the forefront of innovative municipal administrative and operational management and service delivery to the community, while ensuring we consistently and reliably provide outstanding value for taxpayers. The reorganization will also ensure that all of our actions and initiatives will provide the necessary support for Council to successfully achieve their Term Goals and Objectives. A major focus included reorganizing key City departments to better reflect current operational needs and to streamline our organizational structure. Steps were also taken to reduce the size, revitalize the roles and redefine the responsibilities of the Senior Management Team to provide increased oversight in critical focus areas, while supporting more efficient review and approval processes.

These measures outline the ongoing commitment to continuous improvement, reflected in everything we do as a Local Government Administration. We are very proud that Richmond continues to operate at one of the lowest per cent annual property tax rate increases while, at the same time, continually providing one of the highest levels of community services of the municipalities situated in the Lower Mainland.

George DuncanChief Administrative Officer

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6City of Richmond 2012 Annual ReportFIN - 17


Richmond is proud to be seen as a leader among governments. This is reflected in the awards received for excellence in service delivery, management, innovation and leadership. The awards received by the City in 2012 include:• The prestigious World Leisure Organization

Innovation Award for development of Terra Nova Rural Park, the sixth major award won for this park plan.

• 2012 National Urban Design Award from Architecture Canada for the Garden City Park’s design that encourages children’s physical and explorative activity.

• A Regional Honour Award from the Canadian Society of Landscape Architects for the new Middle Arm Waterfront Greenway.

• The Alexandra District Energy Utility was honoured by the Union of B.C. Municipalities in their Leadership and Innovation category among the 2012 Community Excellence Awards.

• A Leadership Excellence Award in BC Hydro’s annual Power Smart Awards.

• The Project of the Year Award from the Public Works Association of BC for the unique design and construction of the new No. 4 Road Pump Station.

• Two awards for financial reporting from the Government Finance Officers Association—this marks the tenth consecutive year Richmond has been recognized by this association.

2012 Awards

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Council Term Goals and Objectives: 2011 to 2014The Community Charter requires that all BC municipalities include a statement in the Annual Report of their objectives for the current and future years, along with measures to track success towards these objectives.

The City of Richmond’s objectives and success indicators are expressed through the Council Term Goals for 2011-2014. At the beginning of each new term of Council, a term goal setting process is undertaken to help Council fulfil its governance role and achieve a successful term of office. This process is an integral part of City operations, helping to ensure the effective use of public resources by providing clear direction and guidance for City work programs. These goals are set based on an extensive review of issues, opportunities and trends affecting City business, and provide a sound framework for evaluating and monitoring the organization’s progress towards achieving its vision “to be the most appealing, livable and well managed community in Canada.”

1. Community SafetyTo ensure Richmond remains a safe and desirable community to live, work and play in, through the delivery of effective public safety services that are targeted to the City’s specific needs and priorities.

2. Community Social ServicesTo develop and implement an updated social services strategy that clearly articulates and communicates the City’s roles, priorities and limitations with respect to social services issues and needs.

3. Economic DevelopmentTo enhance the City’s economic well being and financial sustainability through the development and implementation of strategies and initiatives that lead to long-term business retention, expansion and attraction by clearly defining the businesses and industries we want to attract and retain; placing a stronger focus on tourism and Asia Pacific Gateway business development opportunities; and incorporating a broad business community engagement model.

4. Facility DevelopmentTo ensure provision of quality public facilities and amenities in Richmond that keep pace with the rate of growth, through implementation of an updated comprehensive Facility Development Plan that includes an analysis of existing facilities, the identification of required new facilities, and the recommended timing, financial strategies and public process for implementing the plan.

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5. Financial ManagementTo develop and implement effective and innovative financial policies and strategies that help the City to successfully manage the challenges of tough economic times, while taking advantage of financial opportunities, and balance current and long term financial needs.

6. Intergovernmental RelationsTo strengthen relationships with other levels of government and government agencies to ensure City needs and priorities are well represented, understood and proactively advanced.

7. Managing Growth and DevelopmentTo ensure effective growth management for the City, including the adequate provision of facility, service and amenity requirements associated with growth.

8. SustainabilityTo demonstrate leadership in sustainability through continued implementation of the City’s Sustainability Framework.

9. Arts and CultureTo continue to support the development of a thriving, resilient and diverse cultural sector and related initiatives in creating a vibrant, healthy and sustainable city.

10. Community WellnessTo continue to collaborate with community organizations and agencies to optimize resources in the implementation of the City’s adopted Wellness Strategy.

11. Municipal Infrastructure ImprovementTo continue to invest in the City’s infrastructure networks and systems in a manner that meets community needs and responds to the issues of aging components of the system, growth related capacity issues and the requirements due to changing climate and environmental impacts.

12. Waterfront EnhancementTo place greater emphasis on protecting and enhancing the City’s waterfront while successfully integrating a balance between urban development, public access and events, and a healthy river environment.

13. A Well Informed PublicTo ensure a well informed public regarding Council priorities, activities and achievements.

Additional information on the success indicators in support of these objectives can be found at:www.richmond.ca/cityhall/council/goals.htm

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2012 key accomplishmentsIn 2012, the City completed a number of key milestones in support of the 2011–2014 Council Term Goals and Objectives. Highlights include:• The updated Official Community Plan 2041: Moving Towards Sustainability (OCP) received

final approval from Council. Three years in the making, the OCP charts the City’s future course. Richmond’s most comprehensive OCP ever, it examines land use and the City’s vision to address economic, social, cultural and environmental challenges.

• The City, in partnership with Ducks Unlimited, acquired the 51-hectare (127-acre) Grauer lands outside the dike along our western foreshore. This important habitat will ultimately become a natural reserve and park.

• The City’s first district energy utility began service. The Alexandra District Energy Utility uses geothermal energy to heat and cool buildings in the West Cambie area. At full build out, the utility will help Richmond avoid the local production of 200 to 600 tonnes annually of greenhouse gas emissions.

• The City executed an agreement with TransLink to construct a future Canada Line station at Capstan Way. As part of development within the Capstan Village area, new owners will pay a levy dedicated to station construction. Once sufficient fees are raised, which is expected to take several years, TransLink will construct the new station.

• The City also began consultation on a new Dike Master Plan to meet Richmond’s current and future flood protection needs including addressing global warming and new seismic standards. The City also received $3.57 million in federal and provincial funding for upgrades to the No. 1 Road North Drainage Pump Station and the Williams Road Drainage Pump Station.

• The new Rooftop Garden was opened at the Richmond Cultural Centre. It is being used for community programming promoting sustainable practises, urban agriculture and healthy lifestyles.

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• The new City Centre Community Policing Office was opened. In addition to providing support for RCMP policing activities within Richmond’s core, the office is home to many of the City’s crime prevention programs.

• The City completed a five-year agreement to renew the Richmond hotel room tax. These tax funds support Richmond tourism marketing and will help fund completion of the Richmond Olympic Experience. This new tourist attraction will be the first official North American member of the Olympic Museum Network.

• Richmond took an important step in our economic and cultural development by formally becoming a Sister City of Xiamen, China. This relationship has already provided significant benefits for Richmond in strengthening ties with China.

• The City’s website added online viewing of traffic cameras showing activity at five major intersections, assisting motorists in planning their trips around Richmond. The City made a number of improvements to services offered online, including upgrades to the City website, and the introduction of online business license renewals.

• The City supported the first Richmond Earth Day Youth (REaDY) conference organized by local youth to coincide with Earth Day. This brought together hundreds interested in learning about environmental conservation and stewardship. Due to its success, a second REaDY conference was held in 2013.

Official Community Plan (OCP)Schedule 1 of Bylaw 9000

2041 OCP—Moving Towards Sustainability

Artwork by Anthia Chen

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Report from the General Manager,Finance and Corporate ServicesI am pleased to submit the City of Richmond’s consolidated financial statements for the year ended December 31, 2012. The financial statements reflect a consolidation of the financial position and results of operation for the City of Richmond, Richmond Public Library and the Richmond Olympic Oval Corporation.

The purpose of this Annual Report is to publish the consolidated financial statements and Auditors’ Report for the City of Richmond pursuant to Sections 98 and 167 of the Community Charter. The external auditors, KPMG LLP, conducted an independent examination and have expressed their opinion that the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the City of Richmond as at December 31, 2012 in accordance with Canadian public sector accounting standards.

Richmond’s remarkable growth as a city reached another significant milestone in 2012 as the population surpassed the 200,000 mark. This growth trend is evident in a number of economic indicators. Business licenses issued climbed to 13,336 (2011: 12,988), development activity remained strong with housing starts increasing by 29.5 per cent year over year and the construction value of building permits issued was $457.2M (2011: $424.4M).

The City continued to strengthen its financial condition and position in 2012; the City’s net worth reached $2.3B (2011: $2.2B) and cash and investments increased to $640.6M (2011: $574.9M). Net financial assets increased to $469.2M (2011: $415.7M), while net debt outstanding was reduced to $3.5M (2011: $5.8M). Statutory reserves increased to $295.0M (2011: $275.4M).

The City’s 2012 revenues were $400.3M as compared to $424.0M in 2011. This change was attributable to a decrease in developer contributed assets. Meanwhile, the expenses increased to $317.4M from $313.2M in 2011.

A corporate reorganization in 2012 combined all financial and business-related services, along with several key corporate services within the Finance and Corporate Services Department, including the Finance Division, Real Estate Services, Information Technology, City Clerk’s Office, Economic Development and Business Liaison, Customer Service, Business Licences, Sponsorships/Partnerships and Business Advisory Services. In addition, a new Administration and Compliance Division was formed to help measure work unit performance and ensure strict adherence to Council policies and directions. These organizational changes will continue to ensure that the appropriate rigour and due diligence is applied to business practices in order to safeguard the City’s assets without impacting efficiency or constraining progress. This balanced approach will help keep the City well positioned to continue to carry out and meet Council’s goals and service commitments, while providing good value for taxpayers.

Andrew Nazareth, BEc, CGAGeneral Manager, Finance and Corporate Services

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City of Richmond audited fi nancial statementsYear ended December 31, 2012

City of Richmond audited financial statements

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AABCDKPMG LLP Chartered Accountants Metrotower II Suite 2400 - 4720 Kingsway Burnaby BC V5H 4N2 Canada

Telephone (604) 527-3600 Fax (604) 527-3636 Internet www.kpmg.ca

KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG Canada provides services to KPMG LLP.

INDEPENDENT AUDITORS' REPORT To the Mayor and Council

We have audited the accompanying consolidated financial statements of the City of Richmond, which comprise the consolidated statement of financial position as at December 31, 2012 and the consolidated statements of operations, changes in net financial assets and cash flows for the year then ended, and notes, comprising a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Consolidated Financial Statements

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

Auditors’ Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity's preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the City of Richmond as at December 31, 2012, and its consolidated results of operations, its changes in net consolidated financial assets and its consolidated cash flows for the year then ended in accordance with Canadian public sector accounting standards.

Chartered Accountants

May 13, 2013

Burnaby, Canada


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CITY OF RICHMOND Consolidated Statement of Operations (Expressed in thousands of dollars)

Year ended December 31, 2012, with comparative figures for 2011

Budget 2012 2012 2011 (unaudited - notes 2(m) and 22) Revenue:

Taxation and levies $ 168,205 $ 167,529 $ 161,821 Utility fees 72,193 74,222 69,359 Sales of services 38,219 41,449 41,518 Payments-in-lieu of taxes 13,199 13,189 13,726 Provincial and federal grants 6,612 9,487 8,066 Development cost charges 2,028 10,480 14,321 Other capital funding sources 73,144 19,306 50,063 Other revenues:

Investment income 16,777 17,144 20,328 Gaming revenue 11,148 15,585 13,728 Licenses and permits 7,412 8,734 7,524 Other (note 20) 7,319 23,186 23,588

416,256 400,311 424,042

Expenses: Law and Community safety 81,642 75,193 74,563 Utilities: water, sewerage and sanitation 72,920 72,682 69,430 Engineering, public works and project development 56,774 53,164 52,727 Community services 47,766 46,796 45,345 General government 46,645 38,570 42,358 Planning and development 12,470 11,961 11,560 Richmond Olympic Oval 10,541 9,826 8,646 Library services 9,323 9,245 8,616 338,081 317,437 313,245

Annual surplus 78,175 82,874 110,797

Accumulated surplus, beginning of year 2,221,134 2,221,134 2,110,337

Accumulated surplus, end of year $ 2,299,309 $ 2,304,008 $ 2,221,134

See accompanying notes to consolidated financial statements.


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CITY OF RICHMOND Consolidated Statement of Changes in Net Financial Assets (Expressed in thousands of dollars)


2012 budget 2012 2011 (unaudited - notes 2(m) and 22)

Surplus for the year $ 78,175 $ 82,874 $ 110,797

Acquisition of tangible capital assets (78,175) (66,377) (76,026) Developer contributions of tangible capital assets (12,784) (35,740) Amortization of tangible capital assets 49,566 47,696 Gain on disposal of tangible capital assets (5,828) (10,347) Proceeds on sale of tangible capital assets 6,434 11,806 - 53,885 48,186

Acquisition of inventories of supplies (2,276) (1,934) Acquisition of prepaid expenses (1,954) (1,847) Consumption of inventories of supplies 1,934 1,745 Use of prepaid expenses 1,847 1,734

Change in net financial assets - 53,436 47,884

Net financial assets, beginning of year 415,723 415,723 367,839

Net financial assets, end of year $ 415,723 $ 469,159 $ 415,723



FIN - 28


CITY OF RICHMOND Consolidated Statement of Cash Flows (Expressed in thousands of dollars)


2012 2011

Cash provided by (used in):

Operations: Annual surplus $ 82,874 $ 110,797 Items not involving cash:

Amortization 49,566 47,696 Gain on disposal of tangible capital assets (5,828) (10,347) Developer contributions of tangible capital assets (12,784) (35,740)

Change in non-cash operating working capital: (Increase) decrease in accrued interest receivable (412) 708 (Increase) decrease in accounts receivable (587) 7,556 (Increase) decrease in taxes receivable (2,179) 992 Decrease in development fees receivable 3,903 4,363 Decrease in debt reserve fund - 63 Increase in prepaid expenses (107) (113) Increase in inventories of supplies (342) (189) (Decrease) increase in accounts payable and accrued liabilities (2,373) 3,735 Increase (decrease) in deposits and holdbacks 3,916 (8,694) Increase in deferred revenue 2,506 2,585 Increase in development cost charges 10,168 10,168

Net change in cash from operating activities 128,321 133,580

Capital activities: Cash used to acquire tangible capital assets (66,323) (75,954) Proceeds on disposal of tangible capital assets 6,434 76 Net change in cash from capital activities (59,889) (75,878)

Financing activities: Principal payments on debt (2,320) (3,466) Principal payments on obligations under capital leases (447) (741) Net change in cash from financing activities (2,767) (4,207)

Investing activities: Change in investments (27,799) (60,787)

Net change in cash and cash equivalents 37,866 (7,292)

Cash and cash equivalents, beginning of year 11,766 19,058

Cash and cash equivalents, end of year $ 49,632 $ 11,766

Supplementary Information: Non-cash transactions:

Tangible capital assets financed by capital leases $ 54 $ 72 Sale of property in exchange for leasehold interest in another property - 11,730



FIN - 29


CITY OF RICHMOND Notes to Consolidated Financial Statements (continued) (Tabular amounts expressed in thousands of dollars)

Year ended December 31, 2012

1. Operations:

The City of Richmond (the “City”) is incorporated under the Local Government Act of British Columbia. The City’s principal activities include the provision of local government services to residents of the incorporated area. These include administrative, protective, transportation, environmental, recreational, water, and sewer.

2. Significant accounting policies:

The consolidated financial statements of the City are the representation of management prepared in accordance with Canadian generally accepted accounting principles as prescribed by the Public Sector Accounting Board (“PSAB”) of the Canadian Institute of Chartered Accountants.

(a) Basis of consolidation:

The consolidated financial statements reflect a combination of the City’s General Revenue, General Capital and Loan, Waterworks and Sewerworks, and Reserve Funds consolidated with the Richmond Public Library (the “Library”) and the Richmond Olympic Oval. The Library is consolidated as the Library Board is appointed by the City. The Richmond Olympic Oval is consolidated as it is a wholly owned municipal corporation of the City and operates as an other government organization. Interfund transactions, fund balances and activities have been eliminated on consolidation.

(i) General Revenue Fund:

This fund is used to account for the current operations of the City as provided for in the Annual Budget, including collection of taxes, administering operations, policing, and servicing general debt.

(ii) General Capital and Loan Fund:

This fund is used to record the City's tangible capital assets and work-in-progress, including engineering structures such as roads and bridges, and the related long-term debt.

(iii) Waterworks and Sewerworks Funds:

These funds have been established to cover the costs of operating these utilities, with related capital and loan funds to record the related capital assets and long-term debt.

(iv) Reserve Funds:

Certain funds are established by bylaws for specific purposes. They are funded primarily by budgeted contributions from the General Revenue Fund plus interest earned on fund balances.


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2. Significant accounting policies (continued):

(b) Basis of accounting:

The City follows the accrual method of accounting for revenues and expenses. Revenues are recognized in the year in which they are earned and measurable. Expenses are recognized as they are incurred and measurable as a result of receipt of goods and services and/or the creation of a legal obligation to pay.

(c) Government transfers:

Restricted transfers from governments are deferred and recognized as revenue in the year in which the related expenditures are incurred. Unrestricted transfers are recognized as revenue when received.

(d) Cash and cash equivalents:

Cash and cash equivalents consist of cash, highly liquid money market investments and short-term investments with maturities of less than 90 days from date of acquisition.

(e) Investments:

Investments are recorded at cost, adjusted for amortization of premiums or discounts. Provisions for losses are recorded when they are considered to be other than temporary. At various times during the term of each individual investment, market value may be less than cost. Such declines in value are considered temporary for investments with known maturity dates as they generally reverse as the investments mature and therefore an adjustment to market value for these market declines is not recorded.

(f) Accounts receivable:

Accounts receivable are net of an allowance for doubtful accounts and therefore represent amounts expected to be collected.

(g) Development cost charges:

Development cost charges are restricted by legislation to expenditures on capital infrastructure. These amounts are deferred upon receipt and recognized as revenue when the expenditures are incurred in accordance with the restrictions.

(h) Post-employment benefits:

The City and its employees make contributions to the Municipal Pension Plan. As this plan is a multi-employee plan, contributions are expensed as incurred.

Post-employment benefits also accrue to the City’s employees. The liabilities related to these benefits are actuarially determined based on service and best estimates of retirement ages and expected future salary and wage increases. The liabilities under these benefits plans are accrued based on projected benefits prorated as employees render services necessary to earn the future benefits.


FIN - 31





(i) Non-financial assets:

Non-financial assets are not available to discharge existing liabilities and are held for use in the provision of services. They have useful lives extending beyond the current year and are not intended for sale in the ordinary course of operations.

(i) Tangible capital assets:

Tangible capital assets are recorded at cost, which includes amounts that are directly attributable to acquisition, construction, development, or betterment of the assets. The cost, less the residual value, of the tangible capital assets, excluding land are amortized on a straight line basis over their estimated useful lives as follows:

Asset Useful life - years

Buildings and building improvements 10 - 75 Infrastructure 5 - 100 Vehicles, machinery and equipment 3 - 40 Library’s collections, furniture and equipment 4 - 20

Amortization is charged over the asset’s useful life commencing when the asset is acquired. Assets under construction are not amortized until the asset is available for productive use.

(ii) Contributions of tangible capital assets:

Tangible capital assets received as contributions are recorded at their fair value at the date of receipt and also are recorded as revenue.

(iii) Natural resources:

Natural resources that have been purchased are not recognized as assets in the financial statements.

(iv) Works of art and cultural and historic assets:

Works of art and cultural and historic assets are not recorded as assets in these financial statements.

(v) Interest capitalization:

The City does not capitalize interest costs associated with the construction of a tangible capital asset.

(vi) Leased tangible capital assets:

Leases which transfer substantially all of the benefits and risks incidental to ownership of property are accounted for as leased tangible capital assets. All other leases are


FIN - 32





(vi) Leased tangible capital assets (continued):

accounted for as operating leases and the related payments are charged to expenses as incurred.

(vii) Inventory of materials and supplies:

Inventory is recorded at cost, net of an allowance for obsolete stock. Cost is determined on a weighted average basis.

(j) Deferred revenue:

The City defers a portion of the revenue collected from permits, licenses and other fees and recognizes this revenue in the year in which related inspections are performed or other related expenditures are incurred.

(k) Deposits:

Receipts restricted by the legislation of senior governments or by agreement with external parties are deferred and reported as deposits and are refundable under certain circumstances. When qualifying expenditures are incurred, deposits are recognized as revenue at amounts equal to the qualifying expenditures.

(l) Debt:

Debt is recorded net of repayments and actuarial adjustments.

(m) Budget information:

Unaudited budget information, presented on a basis consistent with that used for actual results, was included in the City of Richmond’s Five Year Financial Plan and was adopted through Bylaw #8867 on April 23, 2012.

(n) Use of accounting estimates:

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenditures during the reporting period. Significant areas requiring the use of management estimates relate to the value of contributed tangible capital assets, value of developer contributions, useful lives for amortization, determination of provisions for accrued liabilities, performing actuarial valuation of employee future benefits, allowance for doubtful accounts, and provision for contingencies. Actual results could differ from those estimates. Adjustments, if any, will be reflected in the financial statements in the period that the change in estimate is made, as well as in the period of settlement if the amount is different.


FIN - 33





(o) Segment disclosures:

A segment is defined as a distinguishable activity of group of activities of a government for which it is appropriate to separately report financial information to achieve the objectives of the standard. The City of Richmond has provided definitions of segments used by the City as well as presented financial information in segment format (note 21).

3. Investments:

2012 2011 Market Market Cost value Cost value

Short-term notes and deposits $ 61,835 $ 62,206 $ 99,424 $ 99,457 Government and government

guaranteed bonds 466,984 468,382 402,293 410,633 Municipal Finance Authority

Pooled Investment 21,691 21,692 21,289 21,289 Other Bonds 40,451 42,192 40,156 42,162

$ 590,961 $ 594,472 $ 563,162 $ 573,541

4. Accounts receivable:

2012 2011

Water and sewer utilities $ 8,130 $ 6,880 Casino revenues 3,580 3,186 Capital grant 3,054 2,934 Other trade receivables 7,918 9,095

$ 22,682 $ 22,095

5. Debt reserve fund deposits and contingent demand notes:

The City issues its debt instruments through the Municipal Finance Authority (the “MFA”). As a condition of these borrowings, a portion of the debenture proceeds is withheld by the MFA in a Debt Reserve Fund. The City also executes demand notes in connection with each debenture whereby the City may be required to loan certain amounts to the MFA. These demand notes are contingent in nature and are not reflected in the City’s accounts. The details of the cash deposits and contingent demand notes at December 31, 2012 are as follows:


FIN - 34




5. Debt reserve fund deposits and contingent demand notes (continued):

Contingent Cash demand deposits notes

General Revenue Fund $ 376 $ 1,707 Sewerworks Revenue Fund 10 48

Total $ 386 $ 1,755

6. Accounts payable and accrued liabilities:

2012 2011

Trade and other liabilities $ 46,911 $ 50,808 Post-employment benefits (note 15) 28,414 26,890

$ 75,325 $ 77,698

7. Deposits and holdbacks:

Balance Balance December 31, Deposit Refund December 31, 2011 contributions expenditures 2012

Security deposits $ 25,140 $ 8,289 $ 5,939 $ 27,490 Contract holdbacks 1,206 2,550 2,089 1,667 Developer contribution 5,537 465 - 6,002 Transit Oriented Development Fund 1,523 - - 1,523 Other 3,347 4,931 4,291 3,987

$ 36,753 $ 16,235 $ 12,319 $ 40,669


FIN - 35




8. Deferred revenue:

Deferred revenue represents revenues that are collected but not earned as of December 31, 2012. These revenues will be recognized in future periods as they are earned. Deferred revenue also represents funds received from external parties for specified purposes. These revenues are recognized in the period in which the related expenses are incurred.

2012 2011

Prepaid taxes $ 15,352 $ 12,652 Building permits 5,185 4,649 Capital grants 4,351 4,919 Firm price billing revenues 2,674 2,723 Business license revenues 2,525 2,433 Parking easement and leased land revenues 2,409 2,403 Other 2,327 2,729 Tree Compensation 1,030 822 Memberships and programs – Oval 946 537 Sport hosting funding – Oval 508 934 Balance, end of year $ 37,307 $ 34,801

9. Development cost charges:

2012 2011

Balance, beginning of year $ 52,379 $ 42,211 Contributions 19,772 23,518 Interest 876 971 Revenue recognized (10,480) (14,321) Balance, end of year $ 62,547 $ 52,379


FIN - 36




10. Obligations under capital leases:

The City has entered into capital lease agreements to finance certain equipment at an estimated cost of borrowing ranging from 1.25% to 5% per year.

Future minimum lease payments relating to obligations under capital leases expiring on various dates as follows:

Year ending December 31:

2013 $ 50 2014 31 2015 22 2016 6 Total future minimum lease payments 109 Less amount representing interest (3)

Present value of capital lease payments $ 106

11. Debt:

The rates of interest on the principal amount of the MFA debentures vary between 3.15% and 8.50% per annum. The average rate of interest for the year ended December 31, 2012 approximates 5.68%.

The City obtains debt instruments through the MFA pursuant to security issuing bylaws under authority of the Community Charter to finance certain capital expenditures.

Gross amount for the debt less repayments and actuarial adjustments to date are as follow:

Gross Repayments Net Net amount and debt debt borrowed actuarial adjustments 2012 2011

General Fund $ 37,600 $ 34,188 $ 3,412 $ 5,659 Sewerworks Fund 1,000 924 76 149

$ 38,600 $ 35,112 $ 3,488 $ 5,808

Repayments on net outstanding debenture debt over the next two years are as follows:

General Sewerworks Total

2013 $ 2,356 $ 76 $ 2,432 2014 1,056 - 1,056 $ 3,412 $ 76 $ 3,488


FIN - 37




12. Tangible capital assets:

Balance at Balance at December 31, Additions December 31, Cost 2011 and transfers Disposals 2012

Land $ 608,511 $ 25,522 $ 453 $ 633,580 Buildings and building

improvements 340,172 7,695 - 347,867 Infrastructure 1,499,594 31,567 1,970 1,529,191 Vehicles, machinery and

equipment 85,263 5,383 2,358 88,288 Library’s collections, furniture and

equipment 9,662 1,361 1,830 9,193 Assets under construction 25,857 7,633 - 33,490

$ 2,569,059 $ 79,161 $ 6,611 $ 2,641,609

Balance at Balance at December 31, Amortization December 31, Accumulated amortization 2011 Disposals expense 2012

Buildings and building improvements $ 90,931 $ - $ 12,118 $ 103,049

Infrastructure 619,060 1,846 30,383 647,597 Vehicles, machinery and

equipment 52,266 2,329 5,306 55,243 Library’s collections, furniture and

equipment 5,172 1,830 1,759 5,101

$ 767,429 $ 6,005 $ 49,566 $ 810,990


FIN - 38




12. Tangible capital assets (continued):

Net book Net book value value December 31, December 31, 2012 2011

Land $ 633,580 $ 608,511 Buildings and building improvements 244,818 249,241 Infrastructure 881,594 880,534 Vehicles, machinery and equipment 33,045 32,997 Library’s collection, furniture and equipment 4,092 4,490 Assets under construction 33,490 25,857

Balance, end of year $ 1,830,619 $ 1,801,630

(a) Assets under construction:

Assets under construction having a value of approximately $33,490,000 (2011 - $25,857,000) have not been amortized. Amortization of these assets will commence when the asset is put into service.

(b) Contributed tangible capital assets:

Contributed capital assets have been recognized at fair market value at the date of contribution. The value of contributed assets received during the year is approximately $12,784,000 (2011 - $35,740,000) comprised of infrastructure in the amount of approximately $9,838,000 (2011 - $11,978,000), land in the amount of approximately $2,946,000 (2011 - $22,483,000) and library collections in the amount of approximately nil (2011 - $1,279,000).

(c) Tangible capital assets disclosed at nominal values:

Where an estimate of fair value could not be made, the tangible capital asset was recognized at a nominal value.

(d) Works of Art and Historical Treasures:

The City manages and controls various works of art and non-operational historical cultural assets including building, artifacts, paintings, and sculptures located at City sites and public display areas. The assets are not recorded as tangible capital assets and are not amortized.

(e) Write-down of tangible capital assets:

There were no writedowns of tangible capital assets during the year (2011 - nil).


FIN - 39




13. Accumulated surplus:

General Fund

Water Utility Fund

Sanitary Sewer Utility Fund

Capital and Loan Fund

Reserves Fund

Library Services

Richmond Oval 2012 Total 2011 Total

Investment in tangible capital assets -$ -$ -$ 1,822,181$ -$ 4,158$ 686$ 1,827,025$ 1,795,323$ Reserves (note 14) - - - - 290,901 - 4,100 295,001 275,353 Appropriated Surplus 137,417 12,565 6,427 (5,850) - 124 212 150,895 123,943 Obligations to be funded - - - - - (4) - (4) (50)Surplus 5,797 15,230 9,187 (2,096) - 374 347 28,839 24,631 Other equity 2,251 - - - - - 1 2,252 1,934 Balance, end of year 145,465$ 27,795$ 15,614$ 1,814,235$ 290,901$ 4,652$ 5,346$ 2,304,008$ 2,221,134$


FIN - 40




14. Reserves:

Change 2011 during year 2012

Reserve funds: Affordable housing $ 11,344 $ 6,738 $ 18,082 Capital building and infrastructure 27,646 9,040 36,686 Capital reserve 81,820 (3,566) 78,254 Child care development 2,146 (151) 1,995 Community legacy and land replacement 17,097 (416) 16,681 Drainage improvement 23,395 4,553 27,948 Equipment replacement 16,744 (165) 16,579 Leisure facilities 2,621 556 3,177 Local improvements 6,330 98 6,428 Neighborhood improvement 6,057 (46) 6,011 Public art program 1,585 382 1,967 Sanitary sewer 30,254 3,418 33,672 Steveston off-street parking 277 5 282 Steveston road ends 2,723 (1,376) 1,347 Waterfront improvement 179 (67) 112 Watermain replacement 43,435 (1,755) 41,680 Oval 1,700 2,400 4,100

$ 275,353 $ 19,648 $ 295,001

15. Post-employment benefits:

The City provides certain post-employment benefits, non-vested sick leave, compensated absences, and termination benefits to its employees.

2012 2011

Balance, beginning of year $ 26,890 $ 25,071 Current service cost 2,095 1,843 Interest cost 1,021 1,207 Amortization of actuarial loss 460 424 Benefits paid (2,052) (1,655)

Balance, end of year $ 28,414 $ 26,890

An actuarial valuation for these benefits was performed to determine the City's accrued benefit obligation as at December 31, 2009 and the results are extrapolated to December 31, 2012. The difference between the actuarially determined accrued benefit obligation of approximately $28,826,000 and the liability of approximately $28,414,000 as at December 31, 2012 is an unamortized net actuarial loss of $412,000. This actuarial loss is being amortized over a period equal to the employees' average remaining service lifetime of 10 years.


FIN - 41




15. Post-employment benefits (continued):

2012 2011

Actuarial benefit obligation:

Liability, end of year $ 28,414 $ 26,890 Unamortized actuarial loss 412 1,581

Balance, end of year $ 28,826 $ 28,471

Actuarial assumptions used to determine the City’s accrued benefit obligation are as follows:

2012 2011

Discount rate 3.50% 3.50% Expected future inflation rate 2.50% 2.50% Expected wage and salary range increases 3.50% 3.50%

16. Pension plan:

The City and its employees contribute to the Municipal Pension Plan (the “Plan”), a jointly trusteed pension plan. The Plan’s Board of Trustees, representing plan members and employers, is responsible for overseeing the management of the Plan, including the investment of the assets and administration of benefits. The pension plan is a multi-employer contributory pension plan. Basic pension benefits provided are based on a formula. The Plan has about 176,000 active members and approximately 67,000 retired members. Active members include approximately 35,000 contributors from local governments.

The most recent actuarial valuation as at December 31, 2009 indicated a $1,024 million funding deficit for basic pension benefits. The next valuation will be as at December 31, 2012 with results available in 2013. Defined contribution plan accounting is applied to the Plan as the Plan exposes the participating entities to actuarial risks associated with the current and former employees of the entities, with the result that there is no consistent and reliable basis for allocating the obligation, Plan assets and cost to individual entities participating in the Plan.

The City paid $9,247,832 (2011 - $9,291,000) for employer contributions to the Plan in fiscal 2012. Employees paid $7,676,659 (2011 - $7,624,000) for employee contributions to the Plan in fiscal 2012.

17. Commitments and contingencies:

(a) Joint and several liabilities:

The City has a contingent liability with respect to debentures of the Greater Vancouver Water District, Greater Vancouver Sewerage and Drainage District and Greater Vancouver Regional District, to the extent provided for in their respective Enabling Acts, Acts of Incorporation and Amending Acts. Management does not consider payment under this contingency to be likely and therefore no amounts have been accrued.


FIN - 42




17. Commitments and contingencies (continued):

(b) Lease payments:

In addition to the obligations under capital leases, at December 31, 2012, the City was committed to operating lease payments for premises and equipment in the following approximate amounts:

2013 $ 4,346 2014 4,273 2015 4,238 2016 4,048 2017 and thereafter 24,588

(c) Litigation:

As at December 31, 2012, there were a number of legal claims in various stages of litigation. The City has made no specific provision for those where the outcome is presently not determinable.

(d) Municipal Insurance Association of British Columbia:

The City is a participant in the Municipal Insurance Association of British Columbia (the “Association”). Should the Association pay out claims in excess of premiums received, it is possible that the City, along with other participants, would be required to contribute towards the deficit. Management does not consider external payment under this contingency to be likely and therefore, no amounts have been accrued.

(e) Contractual obligation:

The City has entered into various contracts for services and construction with periods ranging beyond one year. These commitments are in accordance with budgets passed by Council.

(f) E-Comm Emergency Communications for Southwest British Columbia (“E-Comm”):

The City is a shareholder of the Emergency Communications for Southwest British Columbia Incorporated (E-Comm) whose services provided include: regional 9-1-1 call centre for the Greater Vancouver Regional District; Wide Area Radio network; dispatch operations; and records management. The City has 2 Class A shares and 1 Class B share (of a total of 27 Class A and 22 Class B shares issued and outstanding as at December 31, 2012). As a Class A shareholder, the City shares in both funding the future operations and capital obligations of E-Comm (in accordance with a cost sharing formula), including any lease obligations committed to by E-Comm up to the shareholder’s withdrawal date.


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17. Commitments and contingencies (continued):

(g) Community Associations:

The City has a close relationship with the various community associations which operate the community centers throughout the City. While they are separate legal entities, the City does generally provide the buildings and grounds for the use of the community associations as well as pay the operating costs of the facilities. Typically the community associations are responsible for providing programming and services to the community. The community associations retain all revenue which they receive. The City provides the core staff for the facilities as well as certain additional services such as information technology services.

(h) Contingent liabilities:

The City has a contract with the federal government whereby the federal government provides Royal Canadian Mounted Police (RCMP) policing services. RCMP members and the federal government are currently in legal proceedings regarding pay raises for 2009 and 2010 that were retracted for RCMP members. As the final outcome of the legal action and the potential financial impact to the City is not determinable, the City has not recorded any provision for this matter in the financial statements as at December 31, 2012.

18. Trust funds:

Certain assets have been conveyed or assigned to the City to be administered as directed by agreement or statute. The City holds the assets for the benefit of and stands in fiduciary relationship to the beneficiary. The following trust fund is excluded from the City’s financial statements.

2012 2011

Richmond Community Associations $ 1,091 $ 1,015

19. Collections for other governments:

The City is obligated to collect certain taxation revenue on behalf of other government bodies. These funds are excluded from the City’s financial statements since they are not revenue of the City. Such taxes collected and remitted to the government bodies during the year are as follows:

2012 2011

Province of British Columbia - Schools $ 128,610 $ 122,465 Greater Vancouver Regional District and others 39,498 37,655

$ 168,108 $ 160,120


FIN - 44




20. Other revenue: 2012 2011

Debt funding $ 1,180 $ 2,135 Developer reserve contribution 8,534 3,231 Donation 53 43 Other 4,248 2,482 Parking program 1,566 1,389 Sponsorship 200 293 Tangible capital assets gain/loss on land 5,402 11,719 Taxes and fines 2,003 2,296

$ 23,186 $ 23,588

21. Segmented reporting:

The City of Richmond provides a wide variety of services to its residents. For segment disclosure, these services are grouped and reported under service areas/departments that are responsible for providing such services. They are as follows:

Law and Community Safety brings together the City's public safety providers such as Police(RCMP), Fire-Rescue, Emergency Programs, and Community Bylaws along with sections responsible for legal and regulatory matters. It is responsible for ensuring safe communities byproviding protection services with a focus on law enforcement, crime prevention, emergency response, protection of life and properties, and legal services.

Utilities provide such services as planning, designing, constructing, operating, and maintaining the City’s infrastructure of water and sewer networks and sanitation and recycling.

Engineering, Public Works and Project Development comprises of General Public Works, Roads and Construction, Storm Drainage, Fleet Operations, Engineering Planning, Project Development, and Facility Management. The services provided are construction and maintenance of the City's infrastructure and all City owned buildings, maintenance of the City’s road networks, managing and operating a mixed fleet of vehicles, heavy equipment and an assortment of specialized work units for the City operations, development of current and long-range engineering planning and planning, and construction of major projects.

Community Services comprises of Parks, Recreation and Community Services. These departments ensure recreation opportunities in Richmond by maintaining a variety of facilities such as arenas, community centres, pools, etc. It designs, constructs and maintains parks and sports fields to ensure, there is adequate open green space and sports fields available for Richmond residents. It also addresses the economic, arts, culture, and community issues that the City encounters.

General Government comprises of Mayor and Council, Corporate Administration, Corporate Services, and Business and Financial Services. It is responsible for adopting bylaws, effectively administering city operations, levying taxes, providing sound management of human resources,


FIN - 45




information technology, and City finance, and ensuring high quality services to Richmond residents.

Planning and Development is responsible for land use plans, developing bylaws and policies for sustainable development in the City including the City’s transportation systems.

Richmond Olympic Oval is formed as a wholly owned subsidiary of the City. The City uses the Richmond Olympic Oval facility as a venue for a wide range of sports, business and community activities.

Library Services provides public access to information by maintaining 5 branches throughout the City.


FIN - 46


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FIN - 47




22. Budget data:

The unaudited budget data presented in these consolidated financial statements is based on the 2012 operating and capital budgets approved by Council on April 23, 2012 and the approved budget for Richmond Olympic Oval. Below is the reconciliation of the approved budget to the budget amount reported in these financial statements.

Budget Amount

Revenues: Approved operating budget $ 380,168 Approved capital budget 180,163 Approved Oval budget 11,386

Less: Transfer from other funds 7,591 Intercity recoveries 37,777 Intercompany recoveries 3,074 Carried forward capital expenditures 107,019 Total revenue 416,256

Expenses: Approved operating budget 380,168 Approved capital budget 180,163 Approved Oval budget 10,541

Less: Transfer to other funds 10,636 Intercity payments 37,777 Intercompany payments 3,074 Capital expenditures 73,144 Debt principal payments 1,141 Carried forward capital expenditures 107,019 Total expenses 338,081

Annual surplus per statement of operations $ 78,175


FIN - 48

38City of Richmond 2012 Annual ReportFIN - 49


City of Richmond statistical dataCity of Richmond population 2003–2012 ........................................................................................... 40Total population by age groups .......................................................................................................... 40Immigrant status of Richmond residents by period of immigration ..................................................... 41Richmond’s population by mother tongue .......................................................................................... 41Highest level of education attainment for the population aged 25 to 64 ............................................ 42Occupations of Richmond residents ................................................................................................... 42Registration in Richmond Recreation and Cultural Services programs 2008–2012 ............................... 43Housing starts in Richmond 2003–2012 ............................................................................................. 43Richmond housing starts by type of units 2012 .................................................................................. 44New dwelling units constructed 2003–2012 ...................................................................................... 44Construction value of building permits issued 2003–2012 (in $000s) ................................................. 45Richmond business licences 2008–2012 ............................................................................................. 45City of Richmond budgeted capital construction costs 2008–2012 (in $000s) ..................................... 46Capital program by type 2012 ........................................................................................................... 46Breakdown of residential tax bill 2012 ............................................................................................... 47Breakdown of municipal tax dollar 2012 ............................................................................................ 472012 tax rates .................................................................................................................................... 482012 general revenue fund assessment and taxation by property class (in $000s) ............................... 48Taxes collected on behalf of taxing authorities (in $000s) ................................................................... 482008–2012 General Assessment by Property Class (in $000’s) ............................................................ 492008–2012 Property Tax Levies (in $000’s) ......................................................................................... 49Long term debt repayments relative to expenditures 2008–2012 (in $000s) ....................................... 50City of Richmond debt per capita 2008–2012 .................................................................................... 50Net Debt 2008–2012 (in $000’s) ........................................................................................................ 50Expenses by function 2008–2012 (in $000s) ...................................................................................... 51Expenses by object 2008–2012 (in $000s) .......................................................................................... 51Revenue by source 2008–2012 (in $000s) .......................................................................................... 52Accumulated surplus 2008–2012 (in $000s) ....................................................................................... 52Net financial assets 2008–2012 (in $000s) ......................................................................................... 52Reserves 2008–2012 (in $000s) .......................................................................................................... 53Investment portfolio per type 2011–2012 ($000’s) ............................................................................. 54Ratio analysis indicators of financial condition .................................................................................... 54

City of Richmond statistical data

FIN - 50


9%

5%

7%

14%

12%

16%

16%

11%

6%

4%

0% 2% 4% 6% 8% 10% 12% 14% 16% 18%

0 to 9 years

10 to 14 years

15 to 19 years

20 to 29 years

30 to 39 years

40 to 49 years

50 to 59 years

60 to 69 years

70 to 79 years

80 years and over

165,000 170,000 175,000 180,000 185,000 190,000 195,000 200,000 205,000

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

City of Richmond population 2003–2012

Total population by age groups

Source: City of Richmond Policy Planning Division

Source: Statistics Canada 2011 Census of Population


FIN - 51


English, 49%

Chinese, 33%

Other languages, 14%

Punjabi, 2%Tagalog, 2%

Richmond’s population by mother tongue

Source: Statistics Canada 2011 Census of Population

Canadian born38%

Immigrated before 1991

18%

Immigrated1991-2000

22%Immigrated2001-2011

19%

Non-permanent residents

2%

Source: Statistics Canada, 2011 National Household Survey (NHS)

Immigrant status of Richmond residents by period of immigration


FIN - 52


6%

9%

9%

18%

25%

33%

0% 10% 20% 30% 40%

Apprenticeship or trades certif icate or diploma

University certif icate or diploma below the bachelor level

No certif icate, diploma or degree

College, CEGEP or other non-university certif icate or diploma

High school certif icate or equivalent

University certif icate, diploma or degree at bachelor's level or above

1%

3%

4%

5%

7%

8%

10%

12%

21%

29%

0% 5% 10% 15% 20% 25% 30% 35%

Primary industry

Art, culture, recreation, sport

Processing, manufacturing, utilities

Health

Social science, education, government, religion

Natural and applied sciences and related

Management

Business, f inance, administration

Trades, transport, equipment operators and related

Sales and service

Occupations of Richmond residents

Source: Statistics Canada 2006 Census of Population (most recent data available)

Highest level of education attainment for the population aged 25 to 64

Source: Statistics Canada 2006 Census of Population (most recent data available)


FIN - 53


1,580

1,195

3,179

480

1,085

1,806

2,338

2,304

1,649

1,499

0 500 1,000 1,500 2,000 2,500 3,000 3,500

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

Housing starts in Richmond 2003–2012

Source: City of Richmond building permit data

109,789 113,396

128,622122,784

129,526

0

25,000

50,000

75,000

100,000

125,000

150,000

2008 2009 2010 2011* 2012

Registration in Richmond Recreation and Cultural Services programs 2008–2012

*Change in registration system

Source: City of Richmond Parks, Recreation and Cultural Services Registration System


FIN - 54


Single Family21%

Townhouse8%

Apartment71%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Apartment 604 322 171 531 225 182 728 619 974 1108Single Family * 368 356 346 319 281 286 306 304 374 343Townhouse 314 469 525 566 625 309 323 212 308 129

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

1,286

1,1471,042

1,416

1,131

777

1,357

1,135

1,6561,580

New dwelling units constructed 2003–2012

*Includes one family and two family dwellings

Source: City of Richmond building permit records. Includes only projects for new residential construction receiving final building permit in given year

Richmond housing starts by type of units 2012

Source: City of Richmond building permit data


FIN - 55


13,009

13,273

12,832

12,988

13,336

12,000 12,500 13,000 13,500 14,000

2008

2009

2010

2011

2012

Number of valid business licenses

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Industrial ($000) $21,480 $48,971 $85,201 $105,037 $86,129 $52,867 $29,634 $42,905 $28,710 $26,210Commercial ($000) $50,200 $66,519 $44,173 $142,676 $138,877 $58,923 $26,979 $82,834 $100,578 $64,134Residential ($000) $215,764 $251,005 $359,620 $410,781 $347,159 $293,412 $99,753 $678,628 $291,440 $366,356

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

287,444

366,495

488,994

658,494

575,165

405,202

156,366

804,367

420,728456,700

Construction value of building permits issued 2003–2012(in $000s)

Source: Permits and Licence System, custom report

Richmond business licences 2008–2012

Source: City of Richmond Business Licence System


FIN - 56


Inf rastructure program

51%

Building program

3%

Land and parks program

33%

Equipment program

13%

Source: City of Richmond Finance and Corporate Services Department

2008 2009 2010 2011 2012New Capital $62,686 $41,640 $115,968 $35,723 $25,925Replacement Capital $85,139 $22,261 $32,168 $39,813 $54,362

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

63,901

75,53680,287


City of Richmond budgeted capital construction costs2008–2012 (in $000s)

Capital program by type 2012

147,825 148,136


FIN - 57


1¢1¢1¢

2¢2¢2¢

3¢3¢3¢

4¢4¢4¢4¢4¢4¢

5¢5¢

6¢7¢

15¢20¢

0¢ 5¢ 10¢ 15¢ 20¢ 25¢

Project DevelopmentGeneral Public Works & Fleet

ArenasStorm Drainage

Law, Emergency and BylawEngineering

Planning and Development Aquatic Services

Fiscal Finance and Corporate Services

Facility ManagementCorporate Administration

Community centres & City's Oval contributionRichmond Public Library

Community ServicesInformation Technology

RoadsTransfer to Statutory Reserves

Parks MaintenanceFire

RCMP

City of Richmond

50%

School -Province of

BC38%

Metro Vancouver

1%

BC Assessment

2%

Greater Vancouver

Transit Authority

9%

Breakdown of residential tax bill 2012


Breakdown of municipal tax dollar 2012



FIN - 58


2012 tax ratesCity of

Richmond

School - Province

of BCMetro

VancouverBC

Assessment

Municipal Finance

Authority TransLink

Residential 2.00128 1.56950 0.05766 0.05990 0.00020 0.32440

Business 7.53569 6.40000 0.14126 0.18430 0.00050 1.54850

Light industrial 8.99880 2.56000 0.19603 0.18430 0.00070 1.91320

Seasonal / Recreational 1.91058 3.40000 0.05766 0.05990 0.00020 0.31790

Major industrial 14.43540 2.56000 0.19603 0.51130 0.00070 2.25190

Farm 11.94322 3.45000 0.05766 0.05990 0.00020 0.35990

Utilities 39.90000 14.20000 0.20180 0.51130 0.00070 2.71710


2012 general revenue fund assessment and taxation by property class (in $000s)

Assessment% of assessment

by class Taxation% of taxation

by class

Residential $45,026,858 81.93% $90,111 53.57%

Business 8,046,568 14.64% 60,636 36.04%

Light industrial 1,614,402 2.94% 14,528 8.64%

Seasonal / Recreational 111,935 0.20% 214 0.13%

Major industrial 111,752 0.20% 1,613 0.96%

Farm 26,572 0.05% 317 0.19%

Utilities 19,685 0.04% 785 0.47%

Total $54,957,772 100.00% $168,204 100.00%


Taxes collected on behalf of taxing authorities (in $000s)

2008 2009 2010 2011 2012

City of Richmond $141,531 $148,563 $156,071 $161,821 $167,529

School Board 117,124 115,122 118,391 122,465 128,610

Metro Vancouver 3,302 3,329 3,632 3,957 4,102

BC Assessment 3,655 3,791 4,013 4,258 4,593

TransLink 25,725 27,209 28,058 29,427 30,789

Other 8 11 11 13 14

Total taxes $291,345 $298,025 $310,176 $321,941 $335,637



FIN - 59


2008–2012 General Assessment by Property Class (in $000’s)

2008 2009 2010 2011 2012

Residential $30,909,255 $31,379,141 $32,706,544 $38,773,463 $45,026,858

Business 7,540,962 7,382,861 7,441,015 7,753,426 8,046,568

Light industrial 999,660 1,178,324 1,371,608 1,480,246 1,614,402

Seasonal / Recreational 119,909 101,851 108,471 113,149 111,935

Major industrial 117,395 104,193 107,044 107,536 111,752

Farm 26,016 26,444 26,801 26,699 26,572

Utilities 16,835 17,888 19,543 21,094 19,685

Total $39,730,032 $40,190,702 $41,781,026 $48,275,613 $54,957,772

Source: City of Richmond Finance and Corporate Services

2008–2012 Property Tax Levies (in $000’s)

2008 2009 2010 2011 2012

Total Tax Levy $295,112 $303,853 $314,484 $325,814 $339,221

Municipal portion of Total Tax Levy 141,610 148,878 156,482 162,214 168,205

% of current collections to current levy 98.72% 98.08% 98.63% 98.81% 98.94%

Source: City of Richmond Finance and Corporate Services

FIN - 60


$17

$29

$47

$61

$96

$0 $20 $40 $60 $80 $100 $120

2012

2011

2010

2009

2008

City of Richmond debt per capita 2008–2012


Long term debt repayments relative to expenditures 2008–2012 (in $000s)

General revenue fund 2008 2009 2010 2011 2012

Long term debt repayments $ 4,735 $ 8,235 $ 3,554 $ 3,413 $ 2,972

General expenditures $ 212,385 $ 219,088 $ 217,407 $ 226,553 $ 225,684

Repayments as % of expenditures 2.2% 3.8% 1.6% 1.5% 1.3%

Sewerworks revenue fund

Long term debt repayments $ 115 $ 115 $ 115 $ 115 $ 115

Sewer expenditures $ 20,880 $ 23,269 $ 23,291 $ 24,724 $ 23,789

Repayments as % of expenditures 0.6% 0.5% 0.5% 0.5% 0.5%

Note: Expenditures do not include capital and infrastructure investments.


Net Debt 2008–2012 (in $000’s)

2008 2009 2010 2011 2012

Net debt $18,317 $11,808 $9,274 $5,808 $3,488



FIN - 61


Expenses by function 2008–2012 (in $000s)

2008* 2009 2010 2011* 2012

Community Safety $65,156 $68,294 $70,838 $74,563 $75,193

Engineering and Public Works 53,910 56,451 56,365 52,727 53,164

Community Services 36,977 41,474 43,647 45,345 46,796

General government 46,693 42,971 35,130 42,358 38,570

Utilities 57,661 62,795 69,214 69,430 72,682

Planning and Development 9,649 9,898 11,427 11,560 11,961

Library services 7,297 7,751 8,221 8,616 9,245

Richmond Olympic Oval 2,640 7,007 6,614 8,646 9,826

Total expenses $279,983 $296,641 $301,456 $313,245 $317,437

Source: City of Richmond Finance and Corporate Services Department*Amounts have been restated

Expenses by object 2008–2012 (in $000s)

2008* 2009 2010 2011 2012

Wages, salaries and benefits $106,856 $115,980 $121,244 $128,361 $129,981

Public Works maintenance 12,467 10,697 16,346 18,444 20,901

Contract services 49,523 46,994 46,582 45,687 47,945

Supplies, materials 69,230 63,550 78,972 63,765 63,684

Interest and finance 6,987 7,182 6,002 5,164 4,495

Transfer from (to) capital for tangible capital assets - 7,476 (11,518) 2,755 1,289

Amortization of tangible capital assets 34,824 43,823 47,725 47,696 49,565

Loss/(gain) on disposal of tangible capital assets 96 939 (3,897) 1,373 (423)

Total $279,983 $296,641 $301,456 $313,245 $317,437

*Amounts have been restated



FIN - 62


Revenue by source 2008–2012 (in $000s)

2008* 2009 2010* 2011 2012

Taxation and levies $139,475 $148,503 $156,071 $161,821 $167,529

Utility fees 57,027 63,150 68,365 69,359 74,222

Sales of services 31,714 33,528 37,403 41,518 41,449

Licences and permits 7,833 5,844 7,328 7,524 8,734

Investment income 25,011 22,147 16,864 20,328 17,144

Grants including casino revenue 29,482 31,272 32,119 35,520 38,261

Development cost charges 9,506 22,932 17,804 14,321 10,480

Other capital funding sources 45,036 26,878 53,217 50,063 19,306

Other 15,995 14,673 10,335 23,588 23,186

Total $361,079 $368,927 $399,506 $424,042 $400,311

Source: City of Richmond Finance and Corporate Services Department*Amounts have been restated

Accumulated surplus 2008–2012 (in $000s)

2008* 2009 2010* 2011 2012

Accumulated surplus, beginning of year 1,851,867 1,932,963 2,012,287 2,110,337 2,221,134

Annual surplus $81,096 $72,286 $98,050 $110,797 $82,874

Accumulated surplus, end of year $1,932,963 $2,005,249 $2,110,337 $2,221,134 $2,304,008



Net fi nancial assets 2008–2012 (in $000s)

2008* 2009 2010 2011 2012

Change in net financial assets $(4,104) $20,849 $(32,872) $47,884 $53,436

Net financial assets, end of year $379,862 $400,711 $367,839 $415,723 $469,159




FIN - 63


Reserves 2008–2012 (in $000s)

2008 2009 2010 2011 2012

Affordable housing $10,121 $10,537 $10,728 $11,344 $18,082

Capital building and infrastructure 18,519 22,655 26,238 27,646 36,686

Capital reserve 68,171 70,799 76,229 81,820 78,254

Child care development 541 854 1,789 2,146 1,995

Community legacy and land replacement 68,962 57,298 5,718 17,097 16,681

Drainage improvement 11,269 13,493 18,213 23,395 27,948

Equipment replacement 12,667 13,823 14,912 16,744 16,579

Leisure facilities 2,114 2,319 2,522 2,621 3,177

Local improvements 5,433 5,750 6,117 6,330 6,428

Neighbourhood improvement 5,939 6,276 5,649 6,057 6,011

Public art program 1,088 1,105 1,278 1,585 1,967

Sanitary sewer 21,647 24,332 27,661 30,254 33,672

Steveston off-street parking 248 256 266 277 282

Steveston road ends 293 204 2,930 2,723 1,347

Waterfront improvement 3,051 1,344 496 179 112

Watermain replacement 43,276 42,619 46,377 43,435 41,680

Oval - - - 1,700 4,100

Total reserves $273,339 $273,664 $247,123 $275,353 $295,001



FIN - 64


Short-term notes and deposits

Government and Government

Guaranteed Bonds

MFA pooled investments Other bonds Total Investments

2011 99,424 402,293 21,289 40,156 563,162 2012 61,835 466,984 21,691 40,451 590,961

-

150,000

300,000

450,000

600,000

750,000

Investment portfolio per type 2011–2012 ($000’s)

Ratio analysis indicators of fi nancial condition2011 2012

Sustainability ratios

Assets to liabilities (times) 11.2 11.6

Financial assets to liabilities (times) 2.8 3.1

Net debt to total revenues 1.8% 1.2%

Net debt to total assessment 0.0% 0.0%

Expenses to total assessment 0.6% 0.6%

Flexibility ratios

Public debt charges to revenues 1.2% 1.1%

Net book value of capital assets to cost 70.4% 69.7%

Own source revenue to assessment 0.8% 0.7%

Vulnerability ratios

Government transfers to total revenues 1.9% 2.6%



FIN - 65


2012 permissive property tax exemptionsIn accordance with Section 98 (2)(b) of the Community Charter, we disclose that the following properties were provided permissive property tax exemptions by Richmond City Council in 2012. Permissive tax exemptions are those exemptions granted by bylaw in accordance with Section 224of the Community Charter.

Property / Organization Address2012 Municipal

tax exempted

Churches and religious propertiesB.C. Muslim Association 12300 Blundell Road $ 8,084

Bakerview Gospel Chapel 8991 Francis Road 2,260

Beth Tikvah Congregation 9711 Geal Road 7,012

Bethany Baptist Church 22680 Westminster Highway 15,544

Brighouse United Church 8151 Bennett Road 5,242

Broadmoor Baptist Church 8140 Saunders Road 6,733

Canadian Martyrs Parish 5771 Granville Avenue 8,943

Christian and Missionary Alliance 3360 Sexmith Road 2,808

Christian Reformed Church 9280 No. 2 Road 7,066

Church of God 10011 No. 5 Road 4,692

Church of Latter Day Saints 8440 Williams Road 9,982

Cornerstone Evangelical Baptist Church 12011 Blundell Road 1,722

Dharma Drum Mountain Buddhist Temple 8240 No 5 Road 6,447

Emmanuel Christian Community 10351 No. 1 Road 4,323

Faith Evangelical Church 11960 Montego Street 3,253

Fraserview Mennonite Brethren Church 11295 Mellis Drive 8,601

Fujian Evangelical Church 12200 Blundell Road 6,405

Gilmore Park United Church 8060 No. 1 Road 10,195

I Kuan Tao (Fayi Chungder) Association 8866 Odlin Crescent 3,671

Immanuel Christian Reformed Church 7600 No. 4 Road 4,396

India Cultural Centre 8600 No. 5 Road 10,441

International Buddhist Society 9120 Steveston Highway 2,315

Ismaili Jamatkhama & Centre 7900 Alderbridge Way 22,792

Johrei Fellowship Inc. 10380 Odlin Road 4,684

Lansdowne Congregation Jehovah's Witnesses 11014 Westminster Highway 3,245

Larch St. Gospel Meeting Room 8020 No. 5 Road 2,508

Ling Yen Mountain Temple 10060 No. 5 Road 5,212

Nanaksar Gurdwara Gursikh Temple 18691 Westminster Highway 2,716

North Richmond Alliance Church 9140 Granville Avenue 2,126

Our Savior Lutheran Church 6340 No. 4 Road 5,297

Parish of St. Alban's 7260 St. Albans Road 5,286

City of Richmond permissive property tax exemptions

FIN - 66


Churches and religious properties continued . . .Patterson Road Assembly 9291 Walford Street $ 892

Peace Evangelical Church 8280 No. 5 Road 5,882

Peace Mennonite Church 11571 Daniels Road 9,694

Richmond Alliance Church 11371 No. 3 Road 4,838

Richmond Baptist Church 6560 Blundell Road 1,284

Richmond Baptist Church 6640 Blundell Road 4,535

Richmond Bethel Mennonite Church 10160 No. 5 Road 14,401

Richmond Chinese Alliance Church 10100 No. 1 Road 6,346

Richmond Chinese Evangelical Free Church 8040 No. 5 Road 3,027

Richmond Pentecostal Church 9300 Westminster Highway 8,376

Richmond Pentecostal Church 9260 Westminster Highway 655

Richmond Presbyterian Church 7111 No. 2 Road 4,198

Richmond Sea Island United Church 8711 Cambie Road 7,826

Salvation Army Church 8280 Gilbert Road 3,122

Science of Spirituality SKRM Inc. 11011 Shell Road 1,504

Shia Muslim Community 8580 No. 5 Road 11,995

South Arm United Church 11051 No. 3 Road 3,074

St. Anne's Anglican Church 4071 Francis Road 3,873

St. Edward's Anglican Church 10111 Bird Road 3,773

St. Gregory Armenian Apostolic Church 13780 Westminster Highway 963

St. Joseph the Worker Roman Catholic Church 4451 Williams Road 8,177

St. Monica's Roman Catholic Church 12011 Woodhead Road 5,902

St. Paul's Roman Catholic Parish 8251 St. Albans Road 15,691

Steveston Buddhist Temple 4360 Garry Street 9,088

Steveston Congregation Jehovah's Witnesses 4260 Williams Road 4,390

Steveston United Church 3720 Broadway Street 2,978

Subramaniya Swamy Temple 8840 No. 5 Road 1,154

Thrangu Monastery Association 8140 No. 5 Road 4,938

Thrangu Monastery Association 8160 No. 5 Road 174

Towers Baptist Church 10311 Albion Road 7,357

Trinity Lutheran Church 7100 Granville Avenue 9,204

Ukrainian Catholic Church 8700 Railway Avenue 2,064

Vancouver Airport Chaplaincy 3211 Grant McConachie Way 511

Vancouver International Buddhist Progress Society 6690 - 8181 Cambie Road 8,743

Vancouver International Buddhist Progress Society 8271 Cambie Road 3,829

Vedic Cultural Society of B.C. 8200 No. 5 Road 1,577

West Richmond Gospel Hall 5651 Francis Road 2,690


FIN - 67


Recreation, Child Care, and Community Service PropertiesCook Road Children's Centre 8300 Cook Road $ 1,981

Girl Guides of Canada 4780 Blundell Road 2,244

Kinsmen Club of Richmond 11851 Westminster Highway 405

Navy League of Canada 7411 River Road 9,289

Richmond Caring Place 7000 Minoru Boulevard 164,232

Richmond Family Place 8660 Ash Street 9,285

Richmond Lawn Bowling Club 6131 Bowling Green Road 8,021

Richmond Public Library 11580 Cambie Road 3,240

Richmond Public Library 11688 Steveston Highway 6,194

Richmond Rod and Gun Club 7760 River Road 12,652

Richmond Tennis Club 6820 Gilbert Road 13,390

Richmond Winter Club 5540 Hollybridge Way 124,852

Riverside Children's Centre 5862 Dover Crescent 991

Scotch Pond Heritage 2220 Chatham Street 6,342

Terra Nova Children's Centre 6011 Blanchard Drive 2,036

Treehouse Learning Centre 100 - 5500 Andrews Road 1,368

Richmond Ice Centre 14140 Triangle Road 129,420

Richmond Watermania 14300 Entertainment Boulevard

195,180

Private Educational PropertiesB.C. Muslim Association 12300 Blundell Road $ 2,389

Choice Learning Centre 20411 Westminster Highway 986

Choice Learning Centre 20451 Westminster Highway 4,885

Cornerstone Christian Academy School 12011 Blundell Road 2,361

Richmond Christian School 10260 No. 5 Road 13,782

Richmond Christian School Association 5240 Woodwards Road 28,256

Richmond Jewish Day School 8760 No. 5 Road 16,577

St. Joseph the Worker Roman Catholic Church 4451 Williams Road 18,909

Senior Citizen Housing

Anavets Senior Citizens HousingSociety 102-11820 No. 1 Road $ 8,362

Richmond Kiwanis Senior Citizens Housing 6251 Minoru Boulevard 49,513

Richmond Legion Senior Citizen Society 7251 Langton Road 27,414


FIN - 68


Community Care FacilitiesCanadian Mental Health Association 8911 Westminster Highway $ 5,698

Development Disabilities Association 6531 Azure Road 1,776

Development Disabilities Association 8400 Robinson Road 2,320

Development Disabilities Association 7611 Langton Road 2,368

Greater Vancouver Community Service 4811 Williams Road 2,068

Pinegrove Place, Mennonite Care Home Society 11331 Mellis Drive 14,045

Richmond Society for Community Living 303 - 7560 Moffatt Road 701

Richmond Society for Community Living 4433 Francis Road 1,464

Richmond Society for Community Living 5635 Steveston Highway 6,151

Richmond Society for Community Living 9 - 11020 No. 1 Road 920

Richmond Society for Community Living 9580 Pendleton Road 7,882

Rosewood Manor, Richmond Intermediate Care Society

6260 Blundell Road 30,737

Municipal Use0815024 BC Ltd. 5440 Hollybridge Way $ 28,148

Richmond Oval 6111 River Road 1,919,643


FIN - 69


2012 city centre area transitional tax exemptions

Organization Address2012 Municipal

tax exempted

0737293 BC Ltd. 4711 Garden City Rd $ 21,048

0815024 BC Ltd. 5440 Hollybridge Way 46,716

0882892 BC Ltd. 5600 Cedarbridge Way 10,543

0883911 BC Ltd. 5740 Minoru Boulevard 16,808

2725312 Canada Inc. 5900 No. 2 Road 37,465

2725312 Canada Inc. 6191 Westminster Hwy 20,205

2725312 Canada Inc. 6751 Westminster Hwy 28,648

317159 BC Ltd. 4551 No. 3 Road 38,986

684104 BC Ltd. 9311 River Drive 17,544

AAA Self Storage Depot Inc. 8520 Cambie Road 19,660

Amacon Development (Alderbridge) Corp. 7680 Alderbridge Way 17,256

Arthur Bell Holdings Ltd. 7960 Alderbridge Way 18,386

Arthur Bell Holdings Ltd. 5333 No. 3 Road 17,347

Canadian Tire Real Estate Ltd. 3500 No. 3 Road 28,330

China Cereals & Oils Corp. 8777 Odlin Road 11,946

Conway Richmond Estates Ltd. 4800 No. 3 Road 19,182

Cressey Gilbert Holdings Ltd. 5640 Hollybridge Way 23,020

EIG Alderbridge Investments Inc. 7851 Alderbridge Way 46,111

Elmbridge Holdings Ltd. 6791 Elmbridge Way 41,658

Grand Long Holdings Canada Ltd. 8091 Park Road 23,908

HGL Investments Ltd. 132-4940 No. 3 Road 31,447

Hallmark Holdings Ltd. 7811 Alderbridge Way 40,899

Jiatai Realty Inc. 5400 Minoru Boulevard 19,653

Marisco Holdings Ltd. 7680 River Road 13,614

McDonald's Restaurants of Canada Ltd. 7120 No. 3 Road 16,975

Munch Holdings Co. Ltd. 5660 Minoru Boulevard 14,335

Onni 7731 Alderbridge Holding Corp. 7731 Alderbridge Way 37,925

Onni 7771 Alderbridge Holding Corp. 7771 Alderbridge Way 23,718

PLR Holdings Ltd. 5840 Minoru Boulevard 20,995

Porte Industries Ltd. 5560 Minoru Boulevard 13,880

Richmond Holdings Ltd. 7880 Alderbridge Way 30,264

Richmond Holdings Ltd. 7111 Elmbridge Way 17,294

Richmond Holdings Ltd. 7671 Alderbridge Way 25,811

Richmond Holdings Ltd. 5003 Minoru Boulevard 14,540



City of Richmond city centre area tax exemptions

FIN - 70


The City of Richmond offers a diverse array of civic services to the community. Additional services to the community are provided through the Richmond Olympic Oval, Richmond Public Library and Gateway Theatre. For more information on City services contact:

City of Richmond6911 No. 3 RoadRichmond, British ColumbiaV6Y 2C1 CanadaPhone: 604-276-400024 Hour Emergency Calls: 604-270-8721Telecommunication Devicefor the Deaf (TDD): 604-276-4311Email: [email protected]: www.richmond.ca

Gateway Theatre6500 Gilbert RoadInformation Line: 604-276-6500Box Office: 604-270-1812Website: www.gatewaytheatre.com

Richmond Public LibraryHours: 604-231-6401Website: www.yourlibrary.ca

Richmond Olympic Oval6111 River RoadInformation Line: 778-296-1400Website: www.richmondoval.ca

City of Richmond contacts

City of Richmond contacts

FIN - 71

City of Richmond6911 No. 3 Road, Richmond, BC V6Y 2C1Telephone: 604-276-4000www.richmond.ca

Contents printed on Canadian made, 100% recycled stock using environmentally friendly toners.FIN - 72

CIT

Y

OF

R

ICH

MO

ND

2012

An

nu

al R

epo

rtH

igh

ligh

tsFo

r th

e ye

ar e

nded

Dec

embe

r 31

, 201

2

FIN - 73

The

Gov

ernm

ent

Fina

nce

Off

icer

s A

ssoc

iatio

n of

the

Uni

ted

Stat

es a

nd C

anad

a (G

FOA

) has

giv

en a

n A

war

d fo

r O

utst

andi

ng A

chie

vem

ent

in P

opul

ar A

nnua

l Fi

nanc

ial R

epor

ting

to t

he C

ity o

f Ri

chm

ond

for

its P

opul

ar A

nnua

l Fin

anci

al R

epor

t fo

r th

e fis

cal y

ear

ende

d D

ecem

ber

31, 2

011.

The

Aw

ard

for

Out

stan

ding

A

chie

vem

ent

in P

opul

ar F

inan

cial

Rep

ortin

g is

a p

rest

igio

us n

atio

nal a

war

d re

cogn

izin

g co

nfor

man

ce w

ith t

he h

ighe

st s

tand

ards

for

pre

para

tion

of s

tate

and

loca

l go

vern

men

t po

pula

r re

port

s.

In o

rder

to

achi

eve

an A

war

d fo

r O

utst

andi

ng A

chie

vem

ent

in P

opul

ar A

nnua

l Fin

anci

al R

epor

ting,

a g

over

nmen

t un

it m

ust

publ

ish

a Po

pula

r A

nnua

l Fin

anci

al

Repo

rt, w

hose

con

tent

s co

nfor

m t

o pr

ogra

m s

tand

ards

of

crea

tivity

, pre

sent

atio

n, u

nder

stan

dabi

lity

and

read

er a

ppea

l.

An

Aw

ard

for

Out

stan

ding

Ach

ieve

men

t in

Pop

ular

Ann

ual F

inan

cial

Rep

ortin

g is

val

id f

or a

per

iod

of o

ne y

ear

only.

We

belie

ve o

ur c

urre

nt r

epor

t co

ntin

ues

to

conf

orm

to

the

Popu

lar

Ann

ual F

inan

cial

Rep

ortin

g re

quire

men

t, a

nd w

e ar

e su

bmitt

ing

it to

the

GFO

A.

FIN - 74

1C

ity o

f Ri

chm

ond

2012

Ann

ual R

epor

t H

ighl

ight

s

Con

tent

sRi

chm

ond

City

Cou

ncil .

......

......

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......

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Mes

sage

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m t

he M

ayor

.....

......

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3

Mes

sage

fro

m t

he C

hief

Adm

inis

trat

ive

Off

icer

.....

......

......

......

......

......

......

......

......

......

......

......

......

......

......

...5

2012

key

acc

ompl

ishm

ents

.....

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

...6

2012

aw

ards

......

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......

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8

Repo

rt f

rom

the

Gen

eral

Man

ager

, Fin

ance

and

Cor

pora

te S

ervi

ces .

......

......

......

......

......

......

......

......

......

......

.9

City

of

Rich

mon

d fin

anci

al in

form

atio

n ...

......

......

......

......

......

......

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......

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......

......

......

......

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......

...10

City

of

Rich

mon

d co

ntac

ts ..

......

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14

This

rep

ort

fea

ture

s h

igh

ligh

ts f

rom

Ric

hm

on

d’s

201

2 A

nn

ual

Rep

ort

. Fo

r th

e d

etai

led

201

2 A

nn

ual

R

epo

rt t

hat

mee

ts le

gis

late

d r

equ

irem

ents

, ple

ase

visi

t w

ww

.ric

hm

on

d.c

a (C

ity

Hal

l > F

inan

ce,

Taxe

s &

Bu

dg

ets

> B

ud

get

s &

Fin

anci

al R

epo

rtin

g >

An

nu

al R

epo

rts)

.

The

2012

An

nu

al R

epo

rt H

igh

ligh

ts a

re a

vaila

ble

by

mai

l up

on

req

ues

t. It

is a

lso

ava

ilab

le f

or

the

gen

eral

pu

blic

in h

ard

co

py

at R

ich

mo

nd

Cit

y H

all o

r el

ectr

on

ical

ly o

n t

he

Cit

y o

f R

ich

mo

nd

’s w

ebsi

te.

Co

ver

ph

oto

: The

City

of

Rich

mon

d w

on t

he p

rest

igio

us In

nova

tion

Aw

ard

from

the

Wor

ld L

eisu

re

Org

aniz

atio

n in

201

2 fo

r its

dev

elop

men

t of

Ter

ra N

ova

Rura

l Par

k. It

’s th

e si

xth

maj

or a

war

d th

e C

ity h

as

rece

ived

sin

ce 2

007

for

Terr

a N

ova

Rura

l Par

k, in

clud

ing

prov

inci

al, n

atio

nal a

nd in

tern

atio

nal h

onou

rs.

This

rep

ort

was

pre

pare

d by

the

City

of

Rich

mon

d Fi

nanc

e an

d C

orpo

rate

Ser

vice

s D

epar

tmen

t an

d C

orpo

rate

Com

mun

icat

ions

Off

ice.

Des

ign,

layo

ut a

nd

prod

uctio

n w

as d

one

by t

he C

ity o

f Ri

chm

ond

Prod

uctio

n C

entr

e. ©

2013

City

of

Rich

mon

d

Con

tent

s pr

inte

d on

Can

adia

n m

ade,

100

% r

ecyc

led

stoc

k, u

sing

env

ironm

enta

lly f

riend

ly t

oner

s.

FIN - 75

City

of

Rich

mon

d 20

12 A

nnua

l Rep

ort

Hig

hlig

hts

2

Rich

mon

d C

ity C

ounc

ilFr

ont

row

, lef

t to

rig

ht:

Cou

ncill

or L

inda

Bar

nes,

Cou

ncill

or B

ill M

cNul

ty, M

ayor

Mal

colm

Bro

die,

C

ounc

illor

Lin

da M

cPha

il, C

ounc

illor

Har

old

Stev

es

Back

row

, lef

t to

rig

ht:

Cap

tain

Dav

e C

ulle

n, R

ichm

ond

Fire

-Res

cue

(ret

ired)

, Cou

ncill

or C

hak

Au,

C

ounc

illor

Der

ek D

ang,

Cou

ncill

or E

velin

a H

alse

y-Br

andt

, Cou

ncill

or K

en

John

ston

, Con

stab

le M

elis

sa L

ui, R

ichm

ond

RCM

P

FIN - 76

City

of

Rich

mon

d 20

12 A

nnua

l Rep

ort

Hig

hlig

hts

3

Mes

sage

fro

m t

he M

ayor

2012

was

ano

ther

yea

r of

mile

ston

es f

or t

he C

ity

of R

ichm

ond.

We

cont

inue

d to

inno

vativ

ely

mee

t th

e ne

eds

of o

ur c

omm

unity

tod

ay, w

hile

layi

ng t

he

grou

ndw

ork

for

a su

stai

nabl

e fu

ture

.

A m

ajor

ach

ieve

men

t w

as C

ounc

il’s

adop

tion

of

our

new

Off

icia

l Com

mun

ity P

lan

(OC

P). T

hree

ye

ars

in t

he m

akin

g an

d tit

led

Mov

ing

Tow

ards

Su

stai

nabi

lity,

it is

our

mos

t co

mpr

ehen

sive

OC

P ye

t. It

set

s th

e vi

sion

for

fut

ure

grow

th a

nd la

nd u

se

deci

sion

s as

wel

l as

prov

idin

g st

rate

gies

to

addr

ess

econ

omic

, soc

ial,

cultu

ral a

nd e

nviro

nmen

tal

chal

leng

es.

Tran

spor

tatio

n is

a m

ajor

foc

us o

f th

e ne

w O

CP.

A

s ou

r C

ity g

row

s w

e w

ill n

eed

rapi

d tr

ansi

t to

pl

ay a

n ev

en g

reat

er r

ole

in s

uppo

rtin

g co

mm

unity

m

obili

ty. I

n 20

12, w

e ex

ecut

ed a

n ag

reem

ent

with

Tr

ansL

ink

to e

vent

ually

bui

ld a

n ad

ditio

nal C

anad

a Li

ne s

tatio

n at

Cap

stan

Way

. Thi

s ag

reem

ent

will

se

e ne

w d

evel

opm

ent

in t

he a

rea

fund

ing

the

cost

s of

the

sta

tion

cons

truc

tion

and

is e

xpec

ted

to b

e a

mod

el f

or f

utur

e st

atio

n de

velo

pmen

t ac

ross

the

re

gion

.

Ano

ther

crit

ical

nee

d fo

r ou

r gr

owin

g po

pula

tion

is

new

par

k an

d re

crea

tiona

l spa

ce. O

ver

the

past

few

ye

ars,

Cou

ncil

has

inve

sted

abo

ut $

80 m

illio

n to

su

ppor

t ou

r co

mm

unity

’s em

ergi

ng n

eeds

for

suc

h la

nd. I

n 20

12, i

n pa

rtne

rshi

p w

ith D

ucks

Unl

imite

d,

the

City

acq

uire

d th

e 51

-hec

tare

(127

-acr

e) G

raue

r la

nds

alon

g ou

r w

este

rn f

ores

hore

. Thi

s im

port

ant

habi

tat

will

ulti

mat

ely

beco

me

a na

tura

l res

erve

and

park

. Cou

ncil

also

app

rove

d a

proc

ess

for

plan

ning

th

e fu

ture

of

the

Gar

den

City

Lan

ds, a

crit

ical

55

-hec

tare

(136

-acr

e) p

arce

l of

land

on

the

edge

of

our

City

Cen

tre.

As

a ga

tew

ay t

o th

e A

sia

Paci

fic a

nd o

ne o

f C

anad

a’s

mos

t cu

ltura

lly d

iver

se c

ities

, Ric

hmon

d is

un

ique

ly p

ositi

oned

to

bene

fit f

rom

the

eco

nom

ic

emer

genc

e of

thi

s ar

ea o

f th

e w

orld

. Thi

s pa

st y

ear,

Rich

mon

d to

ok a

n im

port

ant

step

in o

ur e

cono

mic

an

d cu

ltura

l dev

elop

men

t by

for

mal

ly b

ecom

ing

a Si

ster

City

of

Xia

men

, Chi

na.

Ano

ther

hig

hlig

ht f

rom

201

2 w

as R

ichm

ond

bein

g aw

arde

d th

e pr

estig

ious

Wor

ld L

eisu

re O

rgan

izat

ion

Inno

vatio

n A

war

d fo

r de

velo

pmen

t of

Ter

ra N

ova

Rura

l Par

k, t

he s

ixth

maj

or a

war

d w

on f

or t

his

extr

aord

inar

y pr

ojec

t.

As

alw

ays,

our

acc

ompl

ishm

ents

and

our

pla

nnin

g in

volv

ed h

ard

wor

k by

a c

omm

itted

tea

m, i

nclu

ding

C

ity C

ounc

il an

d st

aff

and

our

man

y pa

rtne

rs. I

th

ank

ever

yone

who

has

sup

port

ed o

ur e

ffor

ts t

o pr

eser

ve a

nd b

uild

upo

n Ri

chm

ond’

s re

puta

tion

as

one

of C

anad

a’s

mos

t liv

able

citi

es.

Plea

se f

eel f

ree

to c

onta

ct t

he M

ayor

’s O

ffic

e at

an

y tim

e to

dis

cuss

or

com

men

t on

any

of

the

info

rmat

ion

cont

aine

d in

thi

s A

nnua

l Rep

ort.

Mal

colm

Bro

die

May

or, C

ity o

f Ri

chm

ond

FIN - 77

City

of

Rich

mon

d 20

12 A

nnua

l Rep

ort

Hig

hlig

hts

4

FIN - 78

City

of

Rich

mon

d 20

12 A

nnua

l Rep

ort

Hig

hlig

hts

5

Mes

sage

fro

m t

he C

hief

Adm

inis

trat

ive

Offi

cer

I am

ple

ased

to

pres

ent

the

City

of

Rich

mon

d’s

2012

A

nnua

l Rep

ort.

Thi

s pa

st y

ear,

the

City

Adm

inis

trat

ion

unde

rtoo

k a

num

ber

of k

ey in

itiat

ives

in s

uppo

rt o

f fu

lfilli

ng C

ounc

il’s

Term

Goa

ls a

nd O

bjec

tives

and

our

co

rpor

ate

visi

on.

The

City

of

Rich

mon

d is

ent

erin

g a

perio

d of

sus

tain

ed

grow

th, w

hich

will

see

our

com

mun

ity g

row

fro

m ju

st

over

200

,000

at

pres

ent

to 2

85,0

00 b

y th

e ye

ar 2

041.

A

maj

or f

ocus

for

the

City

is p

lann

ing

and

man

agin

g fo

r th

is g

row

th, s

o th

at m

eetin

g th

e ne

eds

of n

ew

resi

dent

s an

d bu

sine

sses

will

not

neg

ativ

ely

impa

ct

thos

e w

ho a

lread

y re

side

in R

ichm

ond,

and

thu

s en

sure

tha

t th

e ou

tsta

ndin

g qu

ality

of

life

in t

he C

ity is

su

stai

nabl

e.

In 2

012,

thi

s fo

cus

was

ref

lect

ed in

Cou

ncil’

s ad

optio

n of

an

upda

ted

Off

icia

l Com

mun

ity P

lan

(OC

P). T

he

mos

t co

mpr

ehen

sive

OC

P ev

er a

dopt

ed b

y Ri

chm

ond,

it

prov

ides

a f

ram

ewor

k fo

r th

e fu

ture

of

deve

lopm

ent

of o

ur c

omm

unity

, cov

erin

g ev

eryt

hing

fro

m la

nd

use

and

tran

spor

tatio

n po

licy

to d

evel

opm

ent

of

our

arts

and

cul

tura

l and

her

itage

sec

tors

. The

OC

P is

sup

port

ed b

y a

num

ber

of o

ther

maj

or s

trat

egie

s fr

om o

ur S

usta

inab

ility

Fra

mew

ork

to o

ur in

nova

tive

City

Cen

tre

Are

a Pl

an, b

oth

whi

ch w

ill e

nsur

e w

e ar

e pr

epar

ed f

or t

he f

utur

e.

A k

ey C

ounc

il go

al is

the

fur

ther

dev

elop

men

t of

Ri

chm

ond

as a

tou

rist

dest

inat

ion.

In 2

012,

the

City

, To

uris

m R

ichm

ond,

loca

l hot

el o

pera

tors

and

the

Pr

ovin

ce o

f BC

rea

ched

a f

ive-

year

agr

eem

ent

to

rene

w t

he R

ichm

ond

2 pe

r ce

nt h

otel

roo

m t

ax a

nd

exte

nd t

he r

ole

of T

ouris

m R

ichm

ond

as t

he C

ity’s

choi

ce f

or a

tou

rism

ser

vice

pro

vide

r. A

s pa

rt o

f th

is

agre

emen

t, s

ome

of t

he r

even

ue g

ener

ated

thr

ough

th

e 2

per

cent

hot

el t

ax w

ill b

e ut

ilize

d to

sup

port

bot

h th

e Ri

chm

ond

Oly

mpi

c Ex

perie

nce

proj

ect

and

the

City

’s Sp

ort

Hos

ting

func

tion.

The

Ric

hmon

d O

lym

pic

Expe

rienc

e is

an

exci

ting

new

tou

rist

attr

actio

n th

at

will

ope

n at

the

Ric

hmon

d O

lym

pic

Ova

l in

the

fall

of

2014

. The

Ric

hmon

d O

lym

pic

Expe

rienc

e w

ill p

rovi

de

both

eco

nom

ic a

nd s

ocia

l ben

efits

to

our

com

mun

ity.

Dur

ing

2012

, a n

umbe

r of

inte

rnal

org

aniz

atio

nal

chan

ges

wer

e co

mpl

eted

to

help

us

mee

t cu

rren

t an

d em

ergi

ng n

eeds

and

prio

ritie

s. T

hese

org

aniz

atio

nal

tran

sitio

ns a

re d

esig

ned

to k

eep

Rich

mon

d at

the

fo

refr

ont

of in

nova

tive

mun

icip

al a

dmin

istr

ativ

e an

d op

erat

iona

l man

agem

ent

and

serv

ice

deliv

ery

to

the

com

mun

ity, w

hile

ens

urin

g w

e co

nsis

tent

ly a

nd

relia

bly

prov

ide

outs

tand

ing

valu

e fo

r ta

xpay

ers.

The

re

orga

niza

tion

will

als

o en

sure

tha

t al

l of

our

actio

ns

and

initi

ativ

es w

ill p

rovi

de t

he n

eces

sary

sup

port

for

C

ounc

il to

suc

cess

fully

ach

ieve

the

ir Te

rm G

oals

and

O

bjec

tives

. A m

ajor

foc

us in

clud

ed r

eorg

aniz

ing

key

City

dep

artm

ents

to

bett

er r

efle

ct c

urre

nt o

pera

tiona

l ne

eds

and

to s

trea

mlin

e ou

r or

gani

zatio

nal s

truc

ture

. St

eps

wer

e al

so t

aken

to

redu

ce t

he s

ize,

rev

italiz

e th

e ro

les

and

rede

fine

the

resp

onsi

bilit

ies

of t

he S

enio

r M

anag

emen

t Te

am t

o pr

ovid

e in

crea

sed

over

sigh

t in

cr

itica

l foc

us a

reas

, whi

le s

uppo

rtin

g m

ore

effic

ient

re

view

and

app

rova

l pro

cess

es.

Thes

e m

easu

res

outli

ne t

he o

ngoi

ng c

omm

itmen

t to

co

ntin

uous

impr

ovem

ent,

ref

lect

ed in

eve

ryth

ing

we

do a

s a

Loca

l Gov

ernm

ent

Adm

inis

trat

ion.

We

are

very

pr

oud

that

Ric

hmon

d co

ntin

ues

to o

pera

te a

t on

e of

th

e lo

wes

t pe

r ce

nt a

nnua

l pro

pert

y ta

x ra

te in

crea

ses

whi

le, a

t th

e sa

me

time,

con

tinua

lly p

rovi

ding

one

of

the

hig

hest

leve

ls o

f co

mm

unity

ser

vice

s of

the

m

unic

ipal

ities

situ

ated

in t

he L

ower

Mai

nlan

d.

Geo

rge

Dun

can

Chi

ef A

dmin

istr

ativ

e O

ffic

er

FIN - 79

City

of

Rich

mon

d 20

12 A

nnua

l Rep

ort

Hig

hlig

hts

6

2012

key

acc

ompl

ishm

ents

In 2

012,

the

City

com

plet

ed a

num

ber

of k

ey

mile

ston

es in

sup

port

of

the

2011

–201

4 C

ounc

il Te

rm G

oals

and

Obj

ectiv

es. H

ighl

ight

s in

clud

e:

• Th

e up

date

d O

ffic

ial C

omm

unity

Pla

n 20

41:

Mov

ing

Tow

ards

Sus

tain

abili

ty (O

CP)

rec

eive

d fin

al a

ppro

val f

rom

Cou

ncil.

Thr

ee y

ears

in t

he

mak

ing,

the

OC

P ch

arts

the

City

’s fu

ture

cou

rse.

Ri

chm

ond’

s m

ost

com

preh

ensi

ve O

CP

ever

, it

exam

ines

land

use

and

the

City

’s vi

sion

to

addr

ess

econ

omic

, soc

ial,

cultu

ral a

nd e

nviro

nmen

tal

chal

leng

es.

• Th

e C

ity, i

n pa

rtne

rshi

p w

ith D

ucks

Unl

imite

d,

acqu

ired

the

51-h

ecta

re (1

27-a

cre)

Gra

uer

land

s ou

tsid

e th

e di

ke a

long

our

wes

tern

for

esho

re.

This

impo

rtan

t ha

bita

t w

ill u

ltim

atel

y be

com

e a

natu

ral r

eser

ve a

nd p

ark.

• Th

e C

ity’s

first

dis

tric

t en

ergy

util

ity b

egan

se

rvic

e. T

he A

lexa

ndra

Dis

tric

t En

ergy

Util

ity u

ses

geot

herm

al e

nerg

y to

hea

t an

d co

ol b

uild

ings

in

the

Wes

t C

ambi

e ar

ea. A

t fu

ll bu

ild o

ut,

the

utili

ty w

ill h

elp

Rich

mon

d av

oid

the

loca

l pr

oduc

tion

of 2

00 t

o 60

0 to

nnes

ann

ually

of

gree

nhou

se g

as e

mis

sion

s.

• Th

e C

ity e

xecu

ted

an a

gree

men

t w

ith T

rans

Link

to

con

stru

ct a

fut

ure

Can

ada

Line

sta

tion

at

Cap

stan

Way

. As

part

of

deve

lopm

ent

with

in t

he

Cap

stan

Vill

age

area

, new

ow

ners

will

pay

a le

vy

dedi

cate

d to

sta

tion

cons

truc

tion.

Onc

e su

ffic

ient

fe

es a

re r

aise

d, w

hich

is e

xpec

ted

to t

ake

seve

ral

year

s, T

rans

Link

will

con

stru

ct t

he n

ew s

tatio

n.

• Th

e C

ity a

lso

bega

n co

nsul

tatio

n on

a n

ew

Dik

e M

aste

r Pl

an t

o m

eet

Rich

mon

d’s

curr

ent

and

futu

re f

lood

pro

tect

ion

need

s in

clud

ing

addr

essi

ng g

loba

l war

min

g an

d ne

w s

eism

ic

stan

dard

s. T

he C

ity a

lso

rece

ived

$3.

57 m

illio

n in

fed

eral

and

pro

vinc

ial f

undi

ng f

or u

pgra

des

to

the

No.

1 R

oad

Nor

th D

rain

age

Pum

p St

atio

n an

d th

e W

illia

ms

Road

Dra

inag

e Pu

mp

Stat

ion.

• Th

e ne

w R

ooft

op G

arde

n w

as o

pene

d at

the

Ri

chm

ond

Cul

tura

l Cen

tre.

It is

bei

ng u

sed

for

com

mun

ity p

rogr

amm

ing

prom

otin

g su

stai

nabl

e pr

actis

es, u

rban

agr

icul

ture

and

hea

lthy

lifes

tyle

s.

Offi

cial

Co

mm

un

ity

Plan

(OC

P)Sc

hedu

le 1

of

Byla

w 9

000

2041

OC

P—M

ovi

ng

To

war

ds

Sust

ain

abili

ty

Art

wor

k by

Ant

hia

Che

n

FIN - 80

City

of

Rich

mon

d 20

12 A

nnua

l Rep

ort

Hig

hlig

hts

7

• Th

e ne

w C

ity C

entr

e C

omm

unity

Pol

icin

g O

ffic

e w

as o

pene

d. In

add

ition

to

prov

idin

g su

ppor

t fo

r RC

MP

polic

ing

activ

ities

with

in R

ichm

ond’

s co

re,

the

offic

e is

hom

e to

man

y of

the

City

’s cr

ime

prev

entio

n pr

ogra

ms.

• Th

e C

ity c

ompl

eted

a f

ive-

year

agr

eem

ent

to

rene

w t

he R

ichm

ond

hote

l roo

m t

ax. T

hese

tax

fu

nds

supp

ort

Rich

mon

d to

uris

m m

arke

ting

and

will

hel

p fu

nd c

ompl

etio

n of

the

Ric

hmon

d O

lym

pic

Expe

rienc

e. T

his

new

tou

rist

attr

actio

n w

ill b

e th

e fir

st o

ffic

ial N

orth

Am

eric

an m

embe

r of

the

Oly

mpi

c M

useu

m N

etw

ork.

• Ri

chm

ond

took

an

impo

rtan

t st

ep in

our

ec

onom

ic a

nd c

ultu

ral d

evel

opm

ent

by f

orm

ally

be

com

ing

a Si

ster

City

of

Xia

men

, Chi

na. T

his

rela

tions

hip

has

alre

ady

prov

ided

sig

nific

ant

bene

fits

for

Rich

mon

d in

str

engt

heni

ng t

ies

with

C

hina

.

• Th

e C

ity’s

web

site

add

ed o

nlin

e vi

ewin

g of

tr

affic

cam

eras

sho

win

g ac

tivity

at

five

maj

or

inte

rsec

tions

, ass

istin

g m

otor

ists

in p

lann

ing

thei

r tr

ips

arou

nd R

ichm

ond.

The

City

mad

e a

num

ber

of im

prov

emen

ts t

o se

rvic

es o

ffer

ed o

nlin

e,

incl

udin

g up

grad

es t

o th

e C

ity w

ebsi

te, a

nd t

he

intr

oduc

tion

of o

nlin

e bu

sine

ss li

cens

e re

new

als.

• Th

e C

ity s

uppo

rted

the

firs

t Ri

chm

ond

Eart

h D

ay

Yout

h (R

EaD

Y) c

onfe

renc

e or

gani

zed

by lo

cal

yout

h to

coi

ncid

e w

ith E

arth

Day

. Thi

s br

ough

t to

geth

er h

undr

eds

inte

rest

ed in

lear

ning

abo

ut

envi

ronm

enta

l con

serv

atio

n an

d st

ewar

dshi

p.

Due

to

its s

ucce

ss, a

sec

ond

REaD

Y c

onfe

renc

e w

as h

eld

in 2

013.

FIN - 81

City

of

Rich

mon

d 20

12 A

nnua

l Rep

ort

Hig

hlig

hts

8

2012

aw

ards

Rich

mon

d is

pro

ud t

o be

see

n as

a le

ader

am

ong

gove

rnm

ents

. Thi

s is

ref

lect

ed in

the

aw

ards

rec

eive

d fo

r ex

celle

nce

in s

ervi

ce d

eliv

ery,

m

anag

emen

t, in

nova

tion

and

lead

ersh

ip. T

he

awar

ds r

ecei

ved

by t

he C

ity in

201

2 in

clud

e:

• Th

e pr

estig

ious

Wor

ld L

eisu

re O

rgan

izat

ion

Inno

vatio

n A

war

d fo

r de

velo

pmen

t of

Ter

ra N

ova

Rura

l Par

k, t

he s

ixth

maj

or a

war

d w

on f

or t

his

wor

k pl

an.

• 20

12 N

atio

nal U

rban

Des

ign

Aw

ard

from

A

rchi

tect

ure

Can

ada

for

the

Gar

den

City

Par

k’s

desi

gn t

hat

enco

urag

es c

hild

ren’

s ph

ysic

al a

nd

expl

orat

ive

activ

ity.

• A

Reg

iona

l Hon

our

Aw

ard

from

the

Can

adia

n So

ciet

y of

Lan

dsca

pe A

rchi

tect

s fo

r th

e ne

w

Mid

dle

Arm

Wat

erfr

ont

Gre

enw

ay.

• Th

e A

lexa

ndra

Dis

tric

t En

ergy

Util

ity w

as

hono

ured

by

the

Uni

on o

f B.

C. M

unic

ipal

ities

in

thei

r Le

ader

ship

and

Inno

vatio

n ca

tego

ry a

mon

g th

e 20

12 C

omm

unity

Exc

elle

nce

Aw

ards

.

• A

Lea

ders

hip

Exce

llenc

e A

war

d in

BC

Hyd

ro’s

annu

al P

ower

Sm

art

Aw

ards

.

• Th

e Pr

ojec

t of

the

Yea

r A

war

d fr

om t

he P

ublic

W

orks

Ass

ocia

tion

of B

C f

or t

he u

niqu

e de

sign

an

d co

nstr

uctio

n of

the

new

No.

4 R

oad

Pum

p St

atio

n.

• Tw

o aw

ards

for

fin

anci

al r

epor

ting

from

the

G

over

nmen

t Fi

nanc

e O

ffic

ers

Ass

ocia

tion—

this

m

arks

the

ten

th c

onse

cutiv

e ye

ar R

ichm

ond

has

been

rec

ogni

zed

by t

his

asso

ciat

ion.

FIN - 82

City

of

Rich

mon

d 20

12 A

nnua

l Rep

ort

Hig

hlig

hts

9

Repo

rt f

rom

the

Gen

eral

Man

ager

,Fi

nanc

e an

d C

orpo

rate

Ser

vice

s

I am

ple

ased

to

subm

it th

e C

ity o

f Ri

chm

ond’

s co

nsol

idat

ed f

inan

cial

sta

tem

ents

for

the

yea

r en

ded

Dec

embe

r 31

, 201

2. T

he f

inan

cial

st

atem

ents

ref

lect

a c

onso

lidat

ion

of t

he f

inan

cial

po

sitio

n an

d re

sults

of

oper

atio

n fo

r th

e C

ity

of R

ichm

ond,

Ric

hmon

d Pu

blic

Lib

rary

and

the

Ri

chm

ond

Oly

mpi

c O

val C

orpo

ratio

n.

The

purp

ose

of t

his

Ann

ual R

epor

t is

to

publ

ish

the

cons

olid

ated

fin

anci

al s

tate

men

ts a

nd A

udito

rs’

Repo

rt f

or t

he C

ity o

f Ri

chm

ond

purs

uant

to

Sect

ions

98

and

167

of t

he C

omm

unity

Cha

rter

. Th

e ex

tern

al a

udito

rs, K

PMG

LLP

, con

duct

ed a

n

inde

pend

ent

exam

inat

ion

and

have

exp

ress

ed

thei

r op

inio

n th

at t

he c

onso

lidat

ed f

inan

cial

st

atem

ents

pre

sent

fai

rly, i

n al

l mat

eria

l res

pect

s,

the

cons

olid

ated

fin

anci

al p

ositi

on o

f th

e C

ity o

f Ri

chm

ond

as a

t D

ecem

ber

31, 2

012

in a

ccor

danc

e w

ith C

anad

ian

publ

ic s

ecto

r ac

coun

ting

stan

dard

s.

Rich

mon

d’s

rem

arka

ble

grow

th a

s a

city

rea

ched

an

othe

r si

gnifi

cant

mile

ston

e in

201

2 as

the

po

pula

tion

surp

asse

d th

e 20

0,00

0 m

ark.

Thi

s gr

owth

tre

nd is

evi

dent

in a

num

ber

of e

cono

mic

in

dica

tors

. Bus

ines

s lic

ense

s is

sued

clim

bed

to

13,3

36 (2

011:

12,

988)

, dev

elop

men

t ac

tivity

re

mai

ned

stro

ng w

ith h

ousi

ng s

tart

s in

crea

sing

by

29.5

per

cen

t ye

ar o

ver

year

and

the

con

stru

ctio

n va

lue

of b

uild

ing

perm

its is

sued

was

$45

7.2M

(2

011:

$42

4.4M

).

The

City

con

tinue

d to

str

engt

hen

its f

inan

cial

co

nditi

on a

nd p

ositi

on in

201

2; t

he C

ity’s

net

wor

th r

each

ed $

2.3B

(201

1: $

2.2B

) and

cas

h an

d in

vest

men

ts in

crea

sed

to $

640.

6M (2

011:

$5

74.9

M).

Net

fin

anci

al a

sset

s in

crea

sed

to

$469

.2M

(201

1: $

415.

7M),

whi

le n

et d

ebt

outs

tand

ing

was

red

uced

to

$3.5

M (2

011:

$5.

8M).

Stat

utor

y re

serv

es in

crea

sed

to $

295.

0M (2

011:

$2

75.4

M).

The

City

’s 20

12 r

even

ues

wer

e $4

00.3

M a

s co

mpa

red

to $

424.

0M in

201

1. T

his

chan

ge w

as

attr

ibut

able

to

a de

crea

se in

dev

elop

er c

ontr

ibut

ed

asse

ts. M

eanw

hile

, the

exp

ense

s in

crea

sed

to

$317

.4M

fro

m $

313.

2M in

201

1.

A c

orpo

rate

reo

rgan

izat

ion

in 2

012

com

bine

d al

l fin

anci

al a

nd b

usin

ess-

rela

ted

serv

ices

, alo

ng

with

sev

eral

key

cor

pora

te s

ervi

ces

with

in t

he

Fina

nce

and

Cor

pora

te S

ervi

ces

Dep

artm

ent,

in

clud

ing

the

Fina

nce

Div

isio

n, R

eal E

stat

e Se

rvic

es,

Info

rmat

ion

Tech

nolo

gy, C

ity C

lerk

’s O

ffic

e,

Econ

omic

Dev

elop

men

t an

d Bu

sine

ss L

iais

on,

Cus

tom

er S

ervi

ce, B

usin

ess

Lice

nces

, Spo

nsor

ship

s/Pa

rtne

rshi

ps a

nd B

usin

ess

Adv

isor

y Se

rvic

es. I

n ad

ditio

n, a

new

Adm

inis

trat

ion

and

Com

plia

nce

Div

isio

n w

as f

orm

ed t

o he

lp m

easu

re w

ork

unit

perf

orm

ance

and

ens

ure

stric

t ad

here

nce

to C

ounc

il po

licie

s an

d di

rect

ions

. The

se o

rgan

izat

iona

l ch

ange

s w

ill c

ontin

ue t

o en

sure

tha

t th

e ap

prop

riate

rig

our

and

due

dilig

ence

is a

pplie

d to

bu

sine

ss p

ract

ices

in o

rder

to

safe

guar

d th

e C

ity’s

asse

ts w

ithou

t im

pact

ing

effic

ienc

y or

con

stra

inin

g pr

ogre

ss. T

his

bala

nced

app

roac

h w

ill h

elp

keep

th

e C

ity w

ell p

ositi

oned

to

cont

inue

to

carr

y ou

t an

d m

eet

Cou

ncil’

s go

als

and

serv

ice

com

mitm

ents

, w

hile

pro

vidi

ng g

ood

valu

e fo

r ta

xpay

ers.

And

rew

Naz

aret

h, B

Ec, C

GA

Gen

eral

Man

ager

, Fin

ance

and

Cor

pora

te S

ervi

ces

FIN - 83

City

of

Rich

mon

d 20

12 A

nnua

l Rep

ort

Hig

hlig

hts

10

City

of

Rich

mon

d fi n

anci

al in

form

atio

nC

ity

of

Ric

hm

on

d c

on

solid

ated

sta

tem

ent

of

fin

anci

al p

osi

tio

n (

exp

ress

ed in

th

ou

san

ds

of

do

llars

)D

ecem

ber

31, 2

012,

with

com

para

tive

figur

es f

or 2

011

2012

2011

Fin

an

cial

ass

ets

1

Cas

h an

d ca

sh e

quiv

alen

ts

$ 49

,632

$

11,7

66In

vest

men

ts59

0,96

156

3,16

2A

ccru

ed in

tere

st r

ecei

vabl

e3,

122

2,71

0A

ccou

nts

rece

ivab

le22

,682

22,0

95Ta

xes

rece

ivab

le8,

895

6,71

6D

evel

opm

ent

fees

rec

eiva

ble

12,9

2316

,826

Deb

t re

serv

e fu

nd—

depo

sits

386

386

688,

601

623,

661

Fin

an

cial

liab

ilit

ies

Acc

ount

s pa

yabl

e an

d ac

crue

d lia

bilit

ies

75,3

2577

,698

Dep

osits

and

hol

dbac

ks40

,669

36,7

53D

efer

red

reve

nue

37,3

0734

,801

Dev

elop

men

t co

st c

harg

es62

,547

52,3

79O

blig

atio

ns u

nder

cap

ital l

ease

s10

649

9D

ebt

3,48

85,

808

219,

442

207,

938

Net

fin

anci

al a

sset

s2 46

9,15

941

5,72

3

No

n-f

inan

cial

ass

ets

3

Tang

ible

cap

ital a

sset

s1,

830,

619

1,80

1,63

0In

vent

ory

of m

ater

ials

and

sup

plie

s2,

276

1,93

4Pr

epai

d ex

pens

es1,

954

1,84

71,

834,

849

1,80

5,41

1

Acc

umul

ated

sur

plus

4

$ 2,

304,

008

$

2,22

1,13

4

1 Fi

nanc

ial a

sset

s: c

ash

reso

urce

s.2

Net

fin

anci

al a

sset

s: t

he n

et f

inan

cial

pos

ition

, cal

cula

ted

as t

he d

iffer

ence

bet

wee

n fin

anci

al a

sset

s an

d lia

bilit

ies.

3 N

on-f

inan

cial

ass

ets:

the

non

-fin

anci

al a

sset

s th

at a

re o

wne

d w

hich

will

be

utili

zed

for

futu

re s

ervi

ces,

incl

udin

g ta

ngib

le c

apita

l ass

ets,

inve

ntor

ies

and

prep

aid

expe

nses

.4

Acc

umul

ated

sur

plus

: Thi

s is

an

indi

cato

r of

the

City

’s ov

eral

l fin

anci

al h

ealth

. It

is t

he d

iffer

ence

bet

wee

n th

e co

mbi

ned

finan

cial

ass

ets

and

non-

finan

cial

ass

ets

as c

ompa

red

to it

s lia

bilit

ies

and

incl

udes

the

inve

stm

ents

in t

angi

ble

capi

tal a

sset

s (c

apita

l equ

ity),

tota

l res

erve

s (r

estr

icte

d fu

nds)

, app

ropr

iate

d su

rplu

s (in

tern

ally

app

ropr

iate

d fu

nds/

prov

isio

ns) a

nd g

ener

al o

r un

rest

ricte

d su

rplu

s.

The

Fina

ncia

l Sta

tem

ents

are

pre

sent

ed in

com

form

ity w

ith g

ener

ally

acc

epte

d ac

coun

ting

prac

tices

(GA

AP)

FIN - 84

City

of

Rich

mon

d 20

12 A

nnua

l Rep

ort

Hig

hlig

hts

11

Cit

y o

f R

ich

mo

nd

co

nso

lidat

ed s

tate

men

t o

f o

per

atio

ns1

(exp

ress

ed in

th

ou

san

ds

of

do

llars

)Ye

ar e

nded

Dec

embe

r 31

, 201

2, w

ith c

ompa

rativ

e fig

ures

for

201

1

Bu

dg

et

2012

Act

ual

2012

Act

ual

2011

Reven

ues

Taxa

tion

and

levi

es

$ 16

8,20

5

$ 16

7,52

9

$ 16

1,82

1U

tility

fee

s72

,193

74,2

2269

,359

Sale

s of

ser

vice

s38

,219

41,4

4941

,518

Paym

ents

-in-li

eu o

f ta

xes

13,1

9913

,189

13,7

26Pr

ovin

cial

and

fed

eral

gra

nts

6,61

29,

487

8,06

6D

evel

opm

ent

cost

cha

rges

2,02

810

,480

14,3

21O

ther

cap

ital f

undi

ng s

ourc

es73

,144

19,3

0650

,063

Oth

er r

even

ues:

Inve

stm

ent

inco

me

16,7

7717

,144

20,3

28G

amin

g re

venu

e11

,148

15,5

8513

,728

Lice

nces

and

per

mits

7,41

28,

734

7,52

4O

ther

(not

e 20

)7,

319

23,1

8623

,588

416,

256

400,

311

424,

042

Exp

en

ses

Law

and

Com

mun

ity s

afet

y81

,642

75,1

9374

,563

Util

ities

: wat

er, s

ewer

age

and

sani

tatio

n72

,920

72,6

8269

,430

Engi

neer

ing,

pub

lic w

orks

and

pro

ject

dev

elop

men

t56

,774

53,1

6452

,727

Com

mun

ity s

ervi

ces

47,7

6646

,796

45,3

45G

ener

al g

over

nmen

t46

,645

38,5

7042

,358

Plan

ning

and

dev

elop

men

t12

,470

11,9

6111

,560

Rich

mon

d O

lym

pic

Ova

l10

,541

9,82

68,

646

Libr

ary

serv

ices

9,32

39,

245

8,61

633

8,08

131

7,43

731

3,24

5

Ann

ual s

urpl

us78

,175

82,8

7411

0,79

7

Acc

umul

ated

sur

plus

, beg

inni

ng o

f ye

ar2,

221,

134

2,22

1,13

42,

110,

337

Acc

umul

ated

sur

plus

, end

of

year

$

2,29

9,30

9

$ 2,

304,

008

$

2,22

1,13

4

1 Th

e st

atem

ent

of o

pera

tions

sho

ws

the

sour

ces

of r

even

ues

and

expe

nses

, the

ann

ual s

urpl

us o

r de

ficit

and

the

chan

ge in

the

acc

umul

ated

sur

plus

.

FIN - 85

City

of

Rich

mon

d 20

12 A

nnua

l Rep

ort

Hig

hlig

hts

12

City

of

Rich

mon

d fi n

anci

al in

form

atio

n co

ntin

ued

...20

12 a

ctua

l rev

enue

2012

act

ual e

xpen

se

Taxa

tion

and

levi

es42

%

Law

and

C

omm

unity

Sa

fety

24%

Util

ity f

ees

19%

Engi

neer

ing,

Pub

lic

Wor

ks a

nd P

roje

ct

Dev

elop

men

t16

%

Sale

s of

se

rvic

es10

%

Gen

eral

go

vern

men

t12

%

Dev

elop

men

t co

st c

harg

es3%

Com

mun

ity

Serv

ices

15%

Paym

ents

-in-

lieu

of t

axes

3%

Rich

mon

d O

lym

pic

Ova

l3%

Prov

inci

al a

nd

fede

ral g

rant

s2%

Oth

er c

apita

l fu

ndin

g so

urce

s5%

Plan

ning

and

Dev

elop

men

t4%

Util

lites

: wat

er

sew

er a

nd

sani

tatio

n23

%

Libr

ary

serv

ices

3%

Oth

er16

%

FIN - 86

City

of

Rich

mon

d 20

12 A

nnua

l Rep

ort

Hig

hlig

hts

13

Shelt

erIncom

e tax

es

Trans

porta

tion

Food

expe

nditu

res

Recre

ation

Insur

ance

/ Pe

nsion

House

hold

oper

ationClot

hing

and

acce

ssorie

s

Health

care

Educ

ation

House

hold

furn

ishing

s

Misc

ellan

eous

expe

nsesTo

bacc

o an

d alc

ohol

Proper

ty ta

xes

Gifts

Perso

nal c

areBook

s and

mag

azine

s

Games

of c

hanc

e

$1,4

00

$1,2

00

$1,0

00

$800

$600

$400

$200 $0

Mon

thly

ave

rage

hou

seho

ld

cost

s in

Brit

ish

Col

umbi

a20

12 a

ctua

l bre

akdo

wn

of

$1 m

unic

ipal

tax

es

Sour

ce: S

tatis

tics

Can

ada—

Surv

ey o

f ho

useh

old

spen

ding

in 2

011

Sour

ce: C

ity o

f Ri

chm

ond

Fina

nce

and

Cor

pora

te S

ervi

ces

RCM

P

Fire

Park

s m

aint

enan

ce

Tran

sfer

to

stat

utor

y re

serv

es

Road

s

Info

rmat

ion

Tech

nolo

gy

Com

mun

ity S

ervi

ces

Rich

mon

d Pu

blic

Lib

rary

Com

mun

ity c

entr

es &

City

’s O

val c

ontr

ibut

ion

Cor

pora

te A

dmin

istr

atio

n

Faci

lity

Man

agem

ent

Fina

nce

and

Cor

pora

te S

ervi

ces

Fisc

al

Aqu

atic

Ser

vice

s

Plan

ning

and

Dev

elop

men

t

Engi

neer

ing

Law

, Em

erge

ncy

and

Byla

w

Stor

m D

rain

age

Are

nas

Gen

eral

Pub

lic W

orks

and

Fle

et

Proj

ect

Dev

elop

men

t

20

¢

15

¢

7¢

6¢

5¢

5¢

4¢

4¢

4¢

4¢

4¢

4¢

3¢

3¢

3¢

2¢

2¢

2¢

1¢ 1¢ 1¢

FIN - 87

City

of

Rich

mon

d 20

12 A

nnua

l Rep

ort

Hig

hlig

hts

14

City

of

Rich

mon

d co

ntac

tsTh

e C

ity o

f Ri

chm

ond

offe

rs a

div

erse

arr

ay o

f ci

vic

serv

ices

to

the

com

mun

ity. A

dditi

onal

ser

vice

s to

the

com

mun

ity a

re p

rovi

ded

thro

ugh

the

Rich

mon

d O

lym

pic

Ova

l, Ri

chm

ond

Publ

ic L

ibra

ry a

nd G

atew

ay T

heat

re. F

or m

ore

info

rmat

ion

on C

ity s

ervi

ces

cont

act:

City

of R

ichm

ond

6911

No.

3 R

oad

Rich

mon

d, B

ritis

h C

olum

bia

V6Y

2C

1 C

anad

a

Phon

e: 6

04-2

76-4

000

24 H

our

Emer

genc

y C

alls

: 604

-270

-872

1

Tele

com

mun

icat

ion

Dev

ice

for

the

Dea

f (T

DD

): 60

4-27

6-43

11

Emai

l: in

foce

ntre

@ric

hmon

d.ca

Web

site

: ww

w.r

ichm

ond.

ca

Gat

eway

The

atre

6500

Gilb

ert

Road

Info

rmat

ion

Line

: 604

-276

-650

0

Box

Off

ice:

604

-270

-181

2

Web

site

: ww

w.g

atew

ayth

eatr

e.co

m

Rich

mon

d Pu

blic

Lib

rary

For

hour

s: 6

04-2

31-6

401

Web

site

: ww

w.y

ourli

brar

y.ca

Rich

mon

d O

lym

pic

Ova

l61

11 R

iver

Roa

d

Info

rmat

ion

Line

: 778

-296

-140

0

Web

site

: ww

w.r

ichm

ondo

val.c

a

FIN - 88

City

of

Rich

mon

d’s

Visi

on:

To b

e th

e m

ost

appe

alin

g, li

vabl

e an

dw

ell-m

anag

ed c

omm

unity

in C

anad

a

FIN - 89

City

of R

ichm

ond

6911

No.

3 R

oad,

Ric

hmon

d, B

C V

6Y 2

C1Te

leph

one:

604

-276

-400

0w

ww

.ric

hm

on

d.c

a

Con

tent

s pr

inte

d on

Can

adia

n m

ade,

100

% r

ecyc

led

stoc

k us

ing

envi

ronm

enta

lly f

riend

ly t

oner

s.

FIN - 90

To:

From:

City of Richmond

Finance Committee

Jerry Chong Director, Finance

Report to Committee

Date: April 3, 2013

File: 03-0900-01/2013-Vol 01

Re: Revenue Anticipation Borrowing (2013) Bylaw No. 9020


That Revenue Anticipation Borrowing (2013) Bylaw No. 9020 be introduced and given first, second, and third readings.

C} /

JerrY Chong Director, Finance (604-276-4064)

ROUTED To:

Budgets City Clerk Law


3828708

REPORT CONCURRENCE

CONCURRENCE CONCURRENCE OF GENERAL MANAGER

121 ~ ~

lA' [d.

I'b~ REVIEWED BY CAO I~

FIN - 91

April 3, 2013 - 2 -

Staff Report

Origin

The City has an existing credit facility agreement with its bank and is seeking Council's annual authorization through adoption of Revenue Anticipation Borrowing (2013) Bylaw No. 9020 (attached). The credit facility will be available in the form of up to $3,000,000 in standby letters of credit, demand promissory notes or bank overdraft, and up to $4,500,000 in leasing lines of credit.

Analysis

The $7,500,000 credit facility arrangement aforementioned meets the definition of revenue anticipation borrowing as per Section 177 of the Community Charter. Under that section, Council may, by bylaw, provide the authority to borrow money that may be necessary to meet current lawful expenditures and to pay amounts required to meet the City's taxing obligations in relation to other local governments or public bodies. If money is borrowed pursuant to a revenue anticipation borrowing bylaw, any money to be collected from property taxes must be used to repay the money borrowed.

The maximum amount of borrowing allowed for revenue anticipation borrowing is the sum of the unpaid taxes for the current year and the money remaining due from other governments (e.g. payment in lieu of taxes and grants etc.). Therefore, the bylaw amount of $7,500,000 is well below the limit imposed under Section 177 of the Community Charter.

The purpose of obtaining the $3,000,000 operating lines of credit is to ensure that the City has a secondary source of credit in place to protect its bank accounts from the unlikely event of going into an overdraft position. Staff regularly monitors the City's cashflow position to prevent the possibility of having to draw down on the credit facility. The purpose of obtaining the $4,500,000 leasing lines of credit is to ensure that a leasing facility is available in the event it is required. Both types of credit facilities, if they remain unused, will be free of charge for the City to maintain.

In the event the operating lines of credit will be drawn upon, the interest rate will be at the bank's prime lending rate minus 0.50% with interest payable monthly.

In the event the leasing line will be drawn upon, the interest rate will be either floating at the bank's leasing prime rate or at a fixed rate of the bank's leasing base rate plus 0.60%, with periodic payments payable monthly.

Should any of these credit facilities be drawn down in the future for a consecutive period of more than 2 weeks, staff will prepare a report to inform Council of such financial activity.

Financial Impact

None.

FIN - 92

April 3, 2013 - 3 -

Conclusion

That the Revenue Anticipation Borrowing (2013) Bylaw No. 9020 be approved in order for funds to be made available to the City in the event that the City is required to draw upon the City's credit facilities arrangement with its bank.

g Ac ng Manager, Treasury & Financial Services (6 A-247-4602)

FIN - 93

City of Richmond Bylaw 9020

REVENUE ANTICIPATION BORROWING (2013) BYLAW NO. 9020

The Council of the City of Richmond enacts as follows:

1. Council shall be and is hereby empowered and authorized to borrow upon the credit ofthe City, from a financial institution, a sum not exceeding $7,500,000 at such times as may be required.

2. The form of obligation to be given as acknowledgement of the liability shall be $3,000,000 in the form of standby letters of credit, demand promissory notes or bank overdraft, and $4,500,000 in the form ofleasing lines of credit, bearing the corporate seal and signed by the authorized signing officers for the City, pursuant to Council's banking resolution.

3. All unpaid taxes and the taxes of the current year (2013) when levied or so much thereof as may be necessary shall, when collected, be used to repay the money so borrowed.

4. Revenue Anticipation Borrowing (2012) Bylaw No. 8896 is hereby repealed.

5. This Bylaw is cited as "Revenue Anticipation Borrowing (2013) Bylaw No. 9020".

FIRST READING CITY OF RICHMOND

APPROVED

SECOND READING for content by originating

• dept.

THIRD READING M.-U APPROVED for legality

ADOPTED by Sojicitor

M-

MAYOR CORPORATE OFFICER

3828712 FIN - 94

To:

From:

City of Richmond

Finance Committee

Jerry Chong Director, Finance

Report to Committee

Date: May 1, 2013

File: 03-0900-01/2013-Vol 01

Re: 2012 Annual Development Cost Charges


That the staff report titled 2012 Annual Development Cost Charges from the Director, Finance be received for information.

Jerry Chong Director, Finance (604-276-4064)

ROUTED To:

Affordable Housing Development Applications Engineering Finance Division Parks Services Transportation


3828936

REPORT CONCURRENCE

CONCURRENCE CONCURRENCE OF GENERAL MANAGER

I~t ~---'-fi2( ut tsar ~' l2I/

'" II£~~: REVIEWED BY CAO I~::

FIN - 95

May 1, 2013 - 2 -

Staff Report

Origin

In compliance with section 937.01 of the Local Government Act, the City is required to prepare a Development Cost Charges (DCC) report on or before June 30 with information from the previous year. The DCC report must include the following, reported under subsection (2) and (2.1) of section 933 for which local government imposes the development cost charges in the applicable year:

(a) the amount of development cost charges received; (b) the expenditures from the development cost charge reserve funds; (c) the balance in the development cost charge reserve funds at the start and at the end of the

applicable year; (d) any waivers and reductions under section 933.1 (2).

Findings of Fact

The City' s 2012 Annual DCC Report covers the following seven broad categories: (i) Description and principles of the City of Richrnond' s DCC program, (ii) 2012 DCC reserve fund balances, (iii) 2012 DCC credits, (iv) 2012 to 2013 DCC programs, (v) DCC waivers and reductions, (vi) Municipal assist factor, and (vii) Inter-fund transfers between DCC reserve funds.

A copy of the 2012 Annual Development Cost Charges Report, which will be available for public viewing on the City' s website on June 30, 2012, is attached for information.

Conclusion

The attached 2012 Annual Development Cost Charges Report is in compliance with the annual reporting requirements as prescribed under section 937.01 of the Local Government Act.

M· eCnmg A ing Manager, Treasury & Financial Services 60 -247-4602

3828936 FIN - 96

2012 ANNUAL DEVELOPMENT COST CHARGES REPORT

3829028

For the year ended December 31, 2012

City of Richmond's 'Ttsion:

To be the most ap~ livable, and wdl-ma::mged community in Ca:n:ad:a

City of Richmond British Columbia, Canada.

FIN - 97

CITY OF RICHMOND

2012 ANNUAL DEVELOPMENT COST CHARGES REpORT

This 2012 Annual Development Cost Charges (DCC) Report is prepared by the City of Richmond pursuant to Section 937.01 ofthe Local Government Act. This report contains information pertaining to the following reporting requirements:

I. Description and Principles of the City of Richmond's DCC Program

II. 2012 DCC Reserve Fund Balances

III. 2012 DCC Credits

IV. 2012 to 2013 DCC Programs

V. DCC Waivers and Reductions

VI. Municipal Assist Factor

VII. Inter-Fund Transfers between DCC Reserve Funds

I. DEVELOPMENT COST CHARGES

What are DCC's?

Development Cost Charges (DCC's) are charges levied on new development to assist in financing the cost of upgrading or providing infrastructure services or acquiring and developing parkland needed to support new development. The purpose ofDCC's is to assist the municipality with accommodating development by providing a dedicated source of funding for the capital costs of:

• New arterial roads and widening of arterial roads, traffic signals, sidewalks, pedestrian and bicycle lane improvements, transit-related road infrastructures, and traffic safety projects;

• Water mains, drainage mains, pump stations and channel improvements, sanitary sewer mains and pump stations; and

• Acquisition and development of parkland (playing fields, drainage and irrigation, turf, etc.)

What is the purpose of the DCC Program?

The DCC program is one of the many pieces of the City's broader community development framework. It is developed in ways that are consistent with the City's long-term planning objectives and financial strategies. The objective of the DCC program is to ensure that those people that will use and benefit from the services provided will pay their share of the costs in a fair and equitable basis. The DCC program provides the information and basis in which DCC rates are derived, allowing for information transparency and accountability to the public.

3829028 1 FIN - 98

CITY OF RICHMOND


What are the guiding principles in developing the Dee program?

Each local government has a fundamental philosophy with respect to development and the government's role in facilitating development. The City of Richmond's DCC program has been developed to be consistent with the following legislation, plans, and policy guides:

• Local Government Act

• Development Cost Charges Best Practices Guide

• Liveable Region Strategic Plan, 1999 (Greater Vancouver Regional District)

• Official Community Plan (OCP) Bylaw

• Richmond Urban Development Forecast

• Parks, Recreation and Cultural Services Master Plan 2005 - 2015

• Parks Land Acquisition and Development 2006 DCC Program

• City Centre Transportation Plan

• City Centre Area Plan (CCAP)

Furthermore, to ensure that affected stakeholders are informed about the DCC program, the City is required to consult with and obtain comments and input from representatives from the development industry. They include representatives from the Urban Development Institute (UDI), Greater Vancouver Home Builders Association (GVHBA), National Association of Industrial and Office Properties (NAIOP), and small local homebuilders and developers.

How are Dee rates derived?

The City began the DCC process by determining the amount of growth that was projected to occur over a specified future period of time. The growth projections were based on information received in 2008 for the various types of residential development (e.g. single family, duplex, townhouse, apartment), as well as commercial, industrial, and institutional growth, growth areas, and major servicing needs that can be found in the CCAP.

Following the growth projections, the City identified specific infrastructure works that were required to accommodate the growth. The estimated infrastructure costs were determined and formed the basis of the DCC Program.

DCC's collected in 2012 were based on rates established in Development Cost Charges Bylaw No. 8024, Amendment Bylaw No. 8396 that was adopted on September 14, 2009.

3829028 2 ~~mond FIN - 99

CITY OF RICHMOND


How are Dee's used?

Funds collected through DCC's must be deposited in a separate reserve account. These funds may only be used to pay for the capital costs of the works and short-term financing costs of a debt incurred for capital works identified in the DCC program.

DCC's cannot be used for costs incurred to replace, operate and maintain parks, roads, water mains, sanitary and storm sewers already in place to serve the existing residents of the City. In addition, DCC's collected cannot be used to pay for services such as recreation, policing, fire and library that are affected by growth.

How are costs allocated to growth and existing users?

To achieve the objective of promoting growth and to ensure the use of a fair and equitable basis of allocating costs, the costs of the DCC works are allocated between growth and the existing population on the basis of benefits.

II. 2012 DCC RESERVE FUND BALANCES

The City records and maintains separate accounts for each DCC reserve fund. The follow table provides a continuity schedule of each DCC reserve fund (by service) for the 2012 fiscal year:

(amounts expressed in thousands of dollars)

January 1 Transfers DCC Interest Transfers December 31 Balance In Credits Earned Out Balance

Basic: Roads $ 13,763 $ 5,184 $ 915 $ 200 $ 3,378 $ 14,854 Drainage 10,680 1,476 195 96 12,255 Water 3,124 682 45 315 3,536 Sewer 7,261 1,305 95 79 8,582 Parks Acquisition 4,731 7,681 988 114 4,467 7,071 Parks Development 8,678 3,370 414 148 1,165 10,617

Total Basic $ 48,237 $ 19,698 $ 2,317 $ 797 $ 9,500 $ 56,915

Local Area - West Cambie: Roads $ 1,659 $ 1,234 $ 547 $ 39 $ $ 2,385 Drainage 472 141 10 623 Water 83 28 12 2 101 Sewer 183 59 22 4 224 Parks Acquisition 1,199 1,341 20 702 1,858 Parks Development 546 169 4 278 441

Total Local Area $ 4,142 $ 2,972 $ 581 $ 79 $ 980 $ 5,632

Total DCC Reserve $ 52,379 $ 22,670 $ 2,898 $ 876 $ 10,480 $ 62,547 '

3829028 3 ~~mond FIN - 100

CITY OF RICHMOND


III. 2012 DCC Credits

Site Address

10880 No 5 Road 12339 Steveston Highway 4133 Stolberg Street 9388 Cambie Road 9019 Cook Road

Drainage

8399 Jones Road

4133 Stolberg Street 9388 Cambie Road

4133 Stolberg Street 9388 Cambie Road

Developer

T ownline Gardens Inc Townline Gardens Inc Oris Development (Cambie) Corporation Oris Development (Cambie) Corporation Concord Monet Ltd

Western St Albans Venture Ltd

Oris Development (Cambie) Corporation Oris Development (Cambie) Corporation

Oris Development (Cambie) Corporation Oris Development (Cambie) Corporation

Parks Acquisition and Parks Development

10880 No 5 Road Townline Gardens Inc 12339 Steveston Highway Townline Gardens Inc

IV. 2012 to 2013 DCC PROGRAMS

Roads

The projects in the Roads DCC Program include intersection and traffic signal improvements, selected arterial and collector improvements, pedestrian and cyclist improvements, transit-related road infrastructures, traffic safety projects, and debt repayments.

A summary of the projects funded by the Roads DCC's in year 2012 and the projects set to begin in year 2013 is contained in Appendix A.

3829028 4 .~mond FIN - 101

CITY OF RICHMOND


Drainage

The projects in the Drainage DCC Program include storm sewers, pump station upgrades, and new pump stations, and development coordinated works.

A summary of the projects funded by the Drainage DCC's in year 2012 and the projects set to begin in year 2013 is contained in Appendix B.

Water

The projects in the Water DCC Program include watermain replacement and upgrades, infrastructure advanced design, and development coordinated works.

A summary of the projects funded by the Water DCC's in year 2012 and the projects set to begin in year 2013 is contained in Appendix C.

Sewer

The projects in the Sewer DCC Program include pump stations, sewer upgrades, and development coordinated works.

A summary of the projects funded by the Sewer DCC's in year 2012 and the projects set to begin in year 2013 is contained in Appendix D.

Parks Acquisition and Parks Development

The projects in the Parks Acquisition DCC Program include acquisition ofland for parks and open space required to meet the needs of growth. The projects in the Parks Development DCC Program include park planning and design, and construction projects required to meet the needs of future growth. The types of parks include urban parks, community parks, neighbourhood parks, trails, natural areas and waterfront parks.

A summary of the projects funded by the Parks Acquisition and Parks Development DCC's in year 2012 and the projects set to begin in year 2013 is contained in Appendix E.

v. WAIVER AND REDUCTIONS

Section 933.1 of the Local Government Act provides the option for municipalities to exempt or waive DCC's for the following classes of eligible development:

• Not-for-profit rental housing, including supportive living housing; • For-profit affordable rental housing; • Subdivisions of small lots that is designed to result in low greenhouse gas emission; and • Developments designed to result in low environmental impact.

3829028 5 FIN - 102

CITY OF RICHMOND


Currently, the City has a Richmond Affordable Housing Strategy which provides Council with the discretion to waive DCC's subject to a Council resolution in order to create incentives to encourage the construction of not-for-profit rental housing, including supportive living housing (e.g. affordable subsidized rental housing and affordable low end market rental housing that is rented on a not for profit basis). Any DCC's waived is funded from Affordable Housing Reserve and is still a cost to the City.

For year 2012, no waivers or reductions were granted.

VI. MUNICIPAL ASSIST FACTOR

The Local Government Act recognizes that it would be unfair to impose on new development all of the costs that are attributable to new development. As such, the Local Government Act stipulates that an assist factor will be included as part of the calculation ofDCC's. An assist factor represents the City's contribution towards the capital costs for the projects that are attributed to new development. In determining the municipal assist factor, the City considered the following factors:

• Future land use patterns and development; • Phasing of works and services; • Whether the charges are excessive in relation to the capital costs of prevailing standards

of service; • Whether the costs will deter development; or • Whether the charges will discourage the construction of reasonably priced housing or the

provision of reasonably priced serviced land.

Based on the above factors, the City of Richmond's municipal assist factor has been set at 1 %.

VII. INTER-FUND TRANSFER

Local governments are permitted to lend available money in one DCC reserve fund to another DCC reserve fund on a temporary basis.

There were no DCC inter-fund transfers in year 2012.

3829028 6 ~~mond FIN - 103

City of Richmond - 2012 Annual Development Cost Charges Report Appendix A

ROADS·2012 PROJECTS

This table summarizes all projects funded by the Roads DCC's in year 2012:

Location Type of Infr~structure I Description City-wide Arterial Road Crosswalk City-wide Cycling Network Expansion City-wide Enhanced Accessible Traffic Signal and Crosswalk Program City-wide Functional and Preliminary Design of Transportation Capital Projects Lansdowne Road Interim Lansdowne Road Extension (Alderbridge Way to Minoru Boulevard) Lansdowne Road Lansdowne Road Extension Repayment City-wide Miscellaneous Cycling Safety Enhancements City-wide Miscellaneous Intersection Improvements City-wide Neighbourhood Traffic Safety Nelson Road Nelson Road Widening (Westminster Highway to Blundell Road) No.2 Road Bridge No.2 Road Bridge Repayment NO.6 Road NO.6 Road Widening (Wireless Way to Commerce Parkway) City-wide Public Works Infrastructure Advanced Design River Road/ North Loop River Rd / North Loop Repayment City-wide Sidewalk Expansion / Enhancement Program No. 1 Road and Moncton Signalization and Improvements Street City-wide Traffic Detection Video Systems City-wide Traffic Signal Installation and Major Upgrade Program City-wide Transit Plan Infrastructure Improvement Westminster Highway Westminster Hwy Widening (Nelson Road to McMillan Way)

ROADS· 2013 PROJECTS

This table summarizes all projects funded by the Roads DCC's that are set to begin in 2013:

Location Type of Infrastructure I Description City-wide Active Transportation Improvement Program City-wide Crosswalk Improvement Program City-wide Functional and Preliminary Design of Transportation Capital Projects Lansdowne Road Interim Lansdowne Road Extension (Alderbridge Way to Minoru Boulevard) Lansdowne Road Lansdowne Road Extension Repayment City-wide Neighbourhood Traffic Safety Nelson Road Nelson Road Widening (Westminster Highway to Blundell Road) No.2 Road Bridge No.2 Road Bridge Repayment NO.6 Road NO.6 Road Widening (Wireless Way to Commerce Parkway) City-wide Pedestrian and Roadway Improvement Program City-wide Public Works Infrastructure Advanced Design River Road/ North Loop River Rd / North Loop Repayment Steveston Hwy/ Hwy 99 Steveston Highway - Highway 99 Area Road Improvements City-wide Traffic Signal Program Westminster Highway Westminster Hwy Widening (Nelson Road to McMillan Way)

3829030 7

FIN - 104

City of Richmond - 2012 Annual Development Cost Charges Report Appendix B

DRAINAGE - 2012 PROJECTS

This table summarizes all projects funded by the Drainage DCC's in year 2012:

Location Type of Infrastructure I Description City-wide Development Coordinated Works Gilbert North DrainaQe Area Replacement and UPQrade Peace Arch DrainaQe Area Replacement and Upgrade Steveston Drainage Area Replacement and Upgrade Woodward's Slough Drainage Area Replacement and Upgrade City-wide Infrastructure Advanced Design

DRAINAGE - 2013 PROJECTS

This table summarizes all projects funded by the Drainage DCC's that are set to begin in 2013:

Location Type of Infrastructure I Description City-wide Development Coordinated Works NO.5 Road / River Road Bath Slough Pump Station Upgrade

3829030 8

FIN - 105

City of Richmond - 2012 Annual Development Cost Charges Report Appendix C

WATER - 2012 PROJECTS

This table summarizes all projects funded by the Water DCC's in year 2012:

Location Type of Infrastructure I Description City-wide Development Coordinated Works City-wide Infrastructure Advanced Design City-wide PW Minor Capital Waterworks Program Lulu West Replacement and Upgrade Works

WATER - 2013 PROJECTS

There are no projects that will be funded by the Water DCC's in year 2013

Location Type of Infrastructure I Description City-wide Development Coordinated Works Azure Road! Camsell Cres Watermain Replacement Foster Road! McMath Road Watermain Replacement Windjammer Drive Watermain Replacement

3829030 9

FIN - 106

City of Richmond - 2012 Annual Development Cost Charges Report Appendix D

SEWER - 2012 PROJECTS

This table summarizes all projects funded by the Sewer DCC's in year 2012:

Location Type of Infrastructure I Description City-wide Development Coordinated Works City-wide Infrastructure Advanced DesiQn Montrose Montrose Pump Station Replacement BridQeport Sewer UpQrades East Richmond Sewer UpQrades Steveston Sewer UpQrades Terra Nova Sewer UpQrades

SEWER - 2013 PROJECTS

This table summarizes all projects funded by the Sewer DCC's that are set to begin in 2013:

3829030 10

FIN - 107

City of Richmond - 2012 Annual Development Cost Charges Report Appendix E

PARKS - 2012 PROJECTS

This table summarizes all projects funded by the Parks DCC's in year 2012:

Location Type of Infrastructure I Description City-wide Advanced Planning and Design Blundell Park Blundell Park Sportsfield Upgrade West Cambie Greenway and Neighbourhood Park City-wide Park Improvements Terra Nova Rural Park Park Improvements City-wide Parkland Acquisition Granville Ave I Lynas Lane Thompson Integrated Youth Park NO.5 Road! Steveston Highway The Gardens Agricultural Park City Centre Middle Arm Park Trail Construction and Park Construction City-wide Trail Construction and Tree Planting City-wide Tree Planting Program

PARKS - 2013 PROJECTS

This table summarizes all projects funded by the Parks DCC's that are set to begin in 2013:

Location Type of Infrastructure I Description City-wide Advance Planning and Design Britannia Heritage Shipyards Britannia Heritage Shipyards - Boardwalk NO.5 Road! Cambie Road King George Park - Phase 1 City-wide Park Improvements City-wide Park Improvements Terra Nova Rural Park Park Improvements City-wide Parkland Acquisition for Various Addresses Railway Ave - Granville Ave! Garry St Railway Avenue Greenway NO.5 Road! Steveston Highway The Gardens Agricultural Park - Phase 2 Granville Ave! Lynas Lane Thompson Integrated Youth Park West Cambie West Cambie Neighbourhood Park

3829030 11

FIN - 108

To:

From:

City of Richmond

Finance Committee

George Duncan Chief Administrative Officer & President and CEO Richmond Olympic Oval

Andrew Nazareth

Report to Committee

Date: May 16, 2013

File:

General Manager, Finance and Corporate Services & Chief Financial Officer, Richmond Olympic Oval

Re: Richmond Olympic Oval Corporation _1 st Quarter 2013 Financial Information


That the report on the 1 st Quarter 2013 Financial Information for the Richmond Olympic Oval Corporation from the Controller of the Richmond Olympic Oval Corporation be received for information.

George Duncan Chief Administrative Officer & President and CEO Richmond Olympic Oval

3865648

Andrew Nazareth General Manager, Finance and Corporate Services & Chief Financial Officer, Richmond Olympic Oval

FIN - 109

RICHMOND OLYMPIC OVAL Report

DATE: May 27,2013

TO: George Duncan

Chief Executive Officer, Richmond Olympic Oval Corporation

Andrew Nazareth Chief Financial Officer, Richmond Olympic Oval Corporation

John Mills

Chief Operating Officer, Richmond Olympic Oval Corporation

FROM: Rick Dusanj Controller, Richmond Olympic Oval Corporation

Re: Richmond Olympic Oval Corporation _1st Quarter 2013 Financial information

Origin Section 7.3 ofthe Operating Agreement between the City of Richmond (the "City") and the

Richmond Olympic Oval Corporation (the "Corporation") requires reporting with respect to business

plans, budgets, audited financial statements, and quarterly comparisons of actual results to budget

along with projections to fiscal year end. This staff report deals with the first quarter business plan

and financial results for the 3 months ended March 3l, 2013 ("Ql") which was approved by the

Corporation's Board of Directors.

Business Plans and Financial Results Highlights of the activities undertaken by the Corporation during Ql are described below.

Community Use The Corporation continued to provide facility access to the Richmond community. Member

appreciation events were held with over l,OOO members attending several complimentary program

demos. Additionally, the Oval held its first membership usage challenge in February, which is an

incentive program designed to improve retention and use of the Oval facility. This challenge was successful as membership usage for those in the challenge was increased by 30%. Ql was also the

Corporation's most successful quarter in terms of visits and at the end of Ql, 77% of members were

Richmond residents.

Batting cages were well used with Richmond City Baseball (RCB) programming resulting in 232

athlete training sessions. Further baseball programming driven by batting cages resulted in an

additional 60 youth using Oval baseball coaches and facilities. A second custom RCB program as well

as a custom Richmond Youth Soccer Multi-Sport program will be implemented in Q2.

Page lof4

FIN - 110

Sport Development and Events High Performance Services continues to make its mark at the Oval. Over 5,000 athlete training

sessions were completed in Q1. These sessions included athletes from the Richmond Sockeyes

(2013 National Junior B Champions), 9 teams from Richmond Youth Soccer, and the Men's and

Women's Canadian National Field Hockey teams. Ql also saw the activation of a partnership with

BC Fencing to provide strength and conditioning training, plus sport psychology and dietician services

to Be's top fencers. Additional new clients to the High Performance Services department include:

the Vancouver Thunderbirds, North Shore Winter Club and Seafair Hockey.

The High Performance Services department also launched new services and programs in Ql,

including: Physiological Consulting (lactate assessments, V02 max testing, and resting metabolic

rate) and a sold-out Olympic Weightlifting clinic led by local Canadian Olympian Christine Girard.

Ql kick started a busy event season at the Oval. Events were held almost every weekend, including

the 2013 Vancouver Men's International Fencing Grand Prix, the Judo Pacific International, the Elite

Canada Rhythmic Gymnastics competition, and the Powerlifting & Benchpress Nationals.

A strong start to Ql for Richmond Sport Hosting was highlighted by the acquisition of the 2014

TAFISA World Martial Arts Games to be hosted at the Richmond Olympic Oval from September 3-7.

Additionally, securing the 2016 and 2017 Taekwondo Canada National Championship is shaping the successful future of Sport Hosting in Richmond.

Governance

Meetings ofthe Corporation's Board of Directors, the Audit & Finance Committee, and the Business

& Budget Planning Committee all took place during Q1.

Financial

The Ql result was budgeted at a net income of $622,000 and the actual results show a net income of

$1,167,000 before transfers to reserves/ROE capital expenditures, a favorable variance of $545,000

(please see page 4 for the Corporation's statement of operations). Included in this net income figure

is $105,000 of revenue that was recognized pertaining to the capital expenditures on the ROE

project funded by the hotel tax. If we back out this irregular revenue stream, the Corporation still

. earned $1,062,000 before transfers to reserves. In Ql, the Corporation transferred $615,000 into

the reserves.

Comments on the Financial Results for Q1

Revenues

The Ql portion of the estimated 2012 Annual Distributable Amount from the 2010 Games Operating

Trust ("GOT") of $706,000 was recognized as revenue. Memberships, admissions and programs revenue of $1,827,000 had a positive variance of $41,000 (2%) when compared to budget. Other

Revenue of $387,000 was recorded during the quarter which included revenue recognized

Page 20f4

FIN - 111

pertaining to the capital expenses associated with the Richmond Olympic Experience project,

sponsorship, space leasing, parking, and interest revenue.

Expenses Memberships, admissions and program services costs over the first quarter of 2013 were $1,039,000 which is $139,000 (12%) under budget. Facility Operations costs for Q1 were $888,000 which was

$53,000 (6%) under budget. Marketing expenses for Q1 were $87,000 and were consistent with

budget. Administration and Finance expenses for Q1 were $524,000 being $157,000 (23%) under

budget.

Salaries and benefits expenses for Q1, which are included in the above expense line items, were

$1,660,000 and were $88,000 (5%) under budget. Full time staffing levels at the end of Q1 were 62.

The staffing levels are primarily only increased for the following reasons: non-discretionary

expenditures (for example, wage increases mandated by a CBA), 'increase in plant' and Operating

Budget Impacts (OBI) (for example, now that we have installed batting cages, there is an operational

cost associated with running the baseball program), increased activity or programming where

verifiable evidence indicates the need for more resources (for example, greater parking revenue

increases the need for cleaning of the parkade), and expenditures where the correlation to increased

earnings is verifiable (for example, increased instructors for skating lessons where the gross margin

has been established.)

Summary For the three month period ending March 31, 2013, the Corporation budgeted a net income of

$622,000 and the actual results showed a net income of $1,167,000 before transfers to

reserves/ROE capital expenditures; a favorable variance of $545,000.

Rick Dusanj

Controller, Richmond Olympic Oval Corporation

cc: Shana Turner Director, Finance and Corporate Services, Richmond Olympic Oval Corporation

Page 3 of 4

FIN - 112

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FIN - 113

Documents

Agenda Finance CommitteeFIN-95 See Page FIN-95 for full report Designated Speaker: Jerry Chong STAFF RECOMMENDATION That the staff report titled 2012 Annual Development Cost Charges