Annual Report 2016 - civicinfo.bc.ca · pursue the strategic priorities and directives of Municipal Council. The Official Community Plan (OCP) update and the Parks Master Plan were

Coldstream, British Columbia, Canada0

District of

Coldstream

For the Fiscal Year Ended

December 31, 2016

Annual Report 2016

District of

Coldstream

For the Fiscal Year Ended

December 31, 2016

Annual Report 2016

Prepared by the District of Coldstream Finance

Department | Coldstream, British Columbia, Canada

1-12 INTRODUCTORY SECTION

2 Welcome to Coldstream

3 District of Coldstream Council

4 Mayor’s Message

5 Corporate Vision

6 Committees, Boards and Commissions

7 Message from the Chief Administrative Officer

8-9 Message from the Chief Financial Officer

10 Municipal Services and Operations

11 2016 Strategic Priorities

12 2017 Strategic Priorities

13-20 DEPARTMENT OVERVIEWS

13 Corporate Administration

14 Financial Administration

14-16 Infrastructure Services

17-18 Development Services

19-20 Protective Services

21-41 FINANCIAL SECTION – Financial Statements

22 Management’s Statement of Responsibility

23 Independent Auditor’s Report

24 Statement of Financial Position

25 Statement of Operations and Accumulated Surplus

26 Statement of Cash Flows

27 Statement of Changes in Net Financial Liability

28-30 Summary of Significant Accounting Policies

31-40 Notes to Consolidated Financial Statements

41 Schedule 1 – Segment Disclosure

42-56 STATISTICAL SECTION

43 Revenue by Source

44 Expenses by Function

45 Expenses by Object

46 Statement of Reserve Funds and Surplus

47 Capital Spending

48 Capital Funding by Source

49 Long-Term Debt by Function

50 Long-Term Debt Capacity

51 Taxable Property Assessments

52 Property Tax Revenue

53 Principal Corporate Tax Payers

54 Permissive Tax Exemptions

55 Building Permits and Business Licenses

56 Number of Employees

57 Population Demographics

58-62 STATEMENT OF FINANCIAL INFORMATION

58 Schedule of Debts

58 Schedule of Guarantees and Indemnity Agreements

59 Schedule of Remuneration and Expenses

59 Statement of Severance Agreements

60-61 Schedule of Suppliers of Goods and Services (Greater than $25,000)

62 Statement of Financial Information Approval

Table of Contents

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District of Coldstream | Annual Report 2016

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The District of Coldstream is located just east of Vernon,

surrounding the north end of Kalamalka Lake and

extending through the beautiful Coldstream Valley.

The District is comprised of two neighbourhoods;

Coldstream in the west and Lavington in the east,

centering around the Coldstream Ranch, the earliest land

claim in the District.

Kalamalka Lake has been called the lake of many colours

because of its shimmering blue-green waters - a paradise

for swimming, fishing and boating.

Fast Facts

Incorporated: December 21, 1906

Area: 7,645 hectares (18,891 acres)

Population: 10,648 (2016)

Active Parks: 76 acres

123 km paved roads; 11 km unpaved

July mean daily temperature: 19.1o C

Average sunshine: 1,903 hours per year

Average snowfall: 102.2 cm per year

The District has a significant residential component and

boasts a substantial inventory of parks - Coldstream Park,

Creekside Park, Sovereign Park, Lavington Centennial

Park - just to name a few. As well, the District is

bordered on the south by beautiful Kalamalka Lake

Provincial Park. A skateboard park is located on Kidston

Road, and there are numerous biking routes and hiking

trails throughout the District, adding to the rural flavor of

the area.

There are three elementary schools in Coldstream, a high

school, and the Kalamalka Campus of Okanagan College.

Shopping is just a few minutes away in the neighbouring

communities of Vernon and Lumby. A large portion of the

community is mixed agriculture use and ranching.

Industrial development is limited to lumber mills and

small manufacturing.

The District has professional full-time staff in

administration, finance, planning, engineering and public

works, building inspection, bylaw enforcement and fire

inspection. The Fire Department consists of

approximately fifty paid on-call volunteer firefighters and

two fire halls.

Welcome to Coldstream

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The District of Coldstream is governed by an elected

Council comprised of a Mayor and six Councillors.

Members of Council are elected for a four-year term. The

current term is from 2014 to 2018.

Regular Council meetings are held at 6:00 p.m. on the

second and fourth Mondays of every month in Council

Chambers at the Municipal Hall, 9901 Kalamalka Road.

Public Hearings on development matters are scheduled at

the same time and take place just prior to the Regular

Council Meeting. Committee of the Whole meetings are

generally scheduled twice a month. Members of the

public are encouraged to attend all Council and

Committee Meetings and Public Hearings. Meeting

minutes and agendas are available on the District’s

website www.coldstream.ca.

District of Coldstream Council

Back row from left to right Councillor Pat Cochrane, Councillor Doug Dirks, Councillor Gyula Kiss, Councillor Richard Enns, Corporal Ron Scholes Front row from left to right Councillor Glen Taylor, His Worship Mayor Jim Garlick, Councillor Peter McClean

http://www.coldstream.ca/

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On behalf of Council, I would like to take this opportunity

to present the Annual Financial Report of the District of

Coldstream for 2016. This is a look back at the finances,

initiatives and activities of the District for the year. This

report is a legislative requirement of the Province. I hope

that residents take the time to read this report to gain a

better understanding of their community.

Over the past year, Coldstream representatives at the

Regional District of the North Okanagan (RDNO) have

been reassessing the Greater Vernon Master Water Plan

and water rates, completing the restructuring of sub-

regional parks, preparing to take control of the CN rail

lands to create the future rail trail along Kalamalka

Lake, and beginning the implementation of the Greater

Vernon Cultural Plan.

The District of Coldstream completed another year of

capital projects including road paving, drainage

projects, and traffic calming. The pavement

management plan aims at increasing the life of our

roads through yearly budgets and works on the roads to

prolong their useable life expectancy at a lower cost

than if they fail and require complete reconstruction.

In addition to the pavement management plan, raised

sidewalks were installed at both ends of the school zone

at Coldstream Elementary School. The raised sidewalks

serve to slow traffic travelling at excessive speeds in

this congested area. The raised sidewalks at the east

end also serves to divert flood waters experienced here

in the past off Kalamalka Road and back into the creek.

The District of Coldstream is very fortunate to have a

dedicated group of volunteers at our fire halls in

Coldstream and Lavington. Coldstream Council is

working with our fire department to ensure that they

are supported in their efforts. The fire chiefs at these

fire halls work very hard with their members to provide

much-needed service to Coldstream.

I thank you for showing interest and taking the time to

read this report. We would also like to hear any

questions or feedback on this report or its contents to

help Coldstream Council and staff make improvements

as we move forward.

Jim Garlick

Mayor

Message from the Mayor

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Mission Statement of the District of Coldstream

We, the Council of the District of

Coldstream, are committed to a long-range

plan for Coldstream, which fosters orderly

growth and which enhances rural living at

its best. Our mission is to make this a

living plan supported by efficient fiscal

management, appropriate policy and

procedure development, and effective

delivery of services.

Council Responsibilities

Every Council member has the following responsibilities:

To consider the well-being and interests of the

municipality and its community;

To contribute to the development and evaluation

of the policies and programs of the municipality

respecting its services and other activities;

To participate in Council meetings, Committee

meetings, and meetings of other bodies to which

the member is appointed;

To carry out other duties assigned by the

Council;

To carry out other duties assigned by or under

the Community Charter and other legislation.

\

Corporate Vision

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Advisory Planning Commission

Councillor P. Cochrane

Councillor P. McClean, Alternate

Greater Vernon Chamber of Commerce

Councillor P. Cochrane

Okanagan Regional Library Board

Councillor G. Kiss

Councillor P.McClean, Alternate

Regional District of North Okanagan

Councillor D. Dirk

Mayor J. Garlick, Alternate

Greater Vernon Advisory Committee (RDNO)

Mayor J. Garlick

Councillor G. Kiss

Councillor D. Dirk, Alternate

Councillor P. McClean, Alternate

Regional Growth Management Advisory Committee (RDNO)

Councillor D. Dirk

Mayor J. Garlick, Alternate

Agricultural Advisory Committee (RDNO)

Councillor P. McClean

Councillor R. Enns, Alternate

Greater Vernon Parks Service Review Committee (RDNO)

Mayor J. Garlick

Community Sports Field and Athletics Facility Construction Management Committee (RDNO) Mayor J. Garlick

The District of Coldstream is a member of the Regional

District of the North Okanagan, and a Council appointee

serves as Coldstream’s director on the 14 member

Regional District Board, as well as a member the North

Okanagan Regional Hospital District.

Committees, Boards and Commissions

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I am very pleased to provide our residents and taxpayers

with the 2016 Annual Report. The report is a wonderful

opportunity to describe in detail the District’s operations

and set out our financial position. We welcome comments

on the content and form of this report as we strive to

improve communications with our residents about our

community.

In addition to our ongoing pursuit of effective and

efficient municipal service delivery, we continue to

pursue the strategic priorities and directives of Municipal

Council. The Official Community Plan (OCP) update and

the Parks Master Plan were two major planning initiatives

that were finalized in 2016. Both of these documents will

provide oversight and direction to the community for

years to come.

With the completion of the OCP, there are several

supporting bylaws that need to be updated including, but

not limited to, the Zoning Bylaw, Development Cost

Charge Bylaw and Subdivision Servicing Bylaw. Staff and

consultants Urban Systems Ltd., have started work on the

Zoning bylaw and Development Cost Charge bylaw

update. The Zoning bylaw update will make sure the

zoning regulations match the policy direction of the new

OCP and make it a more user friendly, functional bylaw.

The Development Cost Charge bylaw update will review

the impacts of development on our infrastructure to

ensure the District is collecting sufficient resources to

address growth related infrastructure projects.

The District of Coldstream also embarked on the

Lavington Wetland project to lower the level of

contaminants entering Coldstream Creek, as part of the

continuing program to improve water quality. A ditch was

constructed to intercept numerous storm outfalls to a

constructed wetland. This wetland will act to filter the

particulates and any contaminants they may contain,

prior to discharging stormwater into the creek.

The acquisition of the former CN Rail corridor from

Coldstream to Kelowna is a once in a lifetime, legacy

acquisition. The corridor, once developed, will provide a

non-motorized connection from Coldstream to Kelowna.

There will be many tourism and business related

opportunities as the corridor is developed. Coldstream

will continue to work with our regional partners as the

corridor begins to take shape.

Trevor Seibel, BBA, CPA, CA Chief Administrative Officer

There are many other accomplishments contained in this

report that we are proud to share with the community. I

invite you to take the time to read the document and

provide us with any feedback and ideas to make this

document better.

Message from the Chief Administrative Officer

DISTRICT COUNCIL

Chief Administrative

Officer

RCMP

Corporate Administration

Financial Administration

Infrastructure Services

Development Services

Fire Department

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May 31, 2017

In accordance with Section 98 of the Community

Charter, I am pleased to present the 2016 Annual Report

for the District of Coldstream. The report provides

detailed information regarding the financial position and

results of operations for the year ended December 31,

2016.

STRUCTURE

The 2016 Annual Report is presented in three sections.

These sections are identified as Introductory, Financial

and Statistical.

The Introductory Section provides information regarding

the organization of the District of Coldstream including

the 2016 operating results for each department as well

as the 2017 Strategic Priorities. The District’s

departments consist of Corporate Administration,

Financial Administration, Infrastructure Services,

Development Services, and Fire Protection.

The Financial Section presents the 2016 audited financial

statements along with the Auditor’s Report. The audited

financial statements contain the following statements:

Statement of Financial Position

Statement of Operations and Accumulated

Surplus

Statement of Cash Flows

Statement of Changes in Net Liability

The Statistical Section provides a variety of financial and

non-financial statistics for the past five years as well as

specific financial information pursuant to the Financial

Information Act that are not readily apparent from the

Financial Statements.

Most recently the Government Finance Officers

Association of United States and Canada (GFOA) awarded

a Canadian Award for Financial Reporting to the District

for its Financial Report for the fiscal year ended

December 31, 2015, the sixth year in a row.

Patricia (Pat) Higgins Director of Financial Administration

Message from the Chief Financial Officer

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2016 OPERATING RESULTS

The District’s financial position increased in 2016 with

the net financial asset increasing from ($449) thousand

to $410 thousand. The book value of the District’s

tangible capital assets increased $2.970 million with a

total amortization expense of $2.232 million recognized

in 2016. Consolidated revenues were 134.5% of budgeted

revenues, whereas consolidated expenses were 96.8% of

budgeted expenses, resulting in consolidated surplus of

$3.85 million. Highlights from the 2016 Statement of

Operations include:

Increase in revenue of $4.05 million of assets

acquired from new development and park assets

that were transferred from the North Okanagan

Regional District.

Decrease in sewer services in the amount of

$0.193 million due primarily to sewer treatment

actual costs less than budgeted.

Increase in licenses, fines and rentals of $.108

million due primarily from building permit

revenue.

The District’s 25-year Asset Investment Plan highlights

the funding issues related to replacing our existing

infrastructure. A proactive approach to funding the

identified shortfall will put the District on a stronger

financial footing in the years to come. During 2016 the

District’s statutory reserves had a net increase of $0.769

million as a result of the financial strategies employed by

the District.

The operating reserves had a year-end balance of $1.53

million up from the $1.29 million in the previous year.

The increase is due largely to the transfer of funds from

deferred revenues (Gas Tax) recognized as revenues

from grants. The District of Coldstream will continue to

take a more proactive approach to ensure stable surplus

and reserve balances that are adequate for our

community in the coming years.

FINANCIAL MANAGEMENT

The financial statements for the year ended December

31, 2016 were prepared by District staff in accordance

with generally accepted accounting principles and the

Financial Information Act, and the integrity and

objectivity of these statements are management’s

responsibility. Management is also responsible for all the

statements and schedules included in the Annual Report

and for ensuring that this information is consistent,

where appropriate, with the information contained in

the financial statements. Management is responsible for

implementing and maintaining a system of internal

controls to provide reasonable assurance that reliable

financial information is produced.

AUDIT

The financial statements were audited by BDO Canada

LLP, and their responsibility was to express an opinion

based on the results of their audit. The audit was

planned and performed to obtain reasonable assurance

as to whether the financial statements were free of

material error or misstatement. The external auditors

have full and free access to the financial information of

the District.

FUTURE OUTLOOK

The District continues to find ways to stimulate growth

and development while ensuring efficient service

delivery to our residents. The Official Community Plan

(OCP) was upgraded in 2016 and will ensure that the

District’s policies are current and reflect the needs of

the community. With the completion of the OCP, staff

will look at making any required changes to other

documents, such as our zoning bylaw, tax policies or fees

and charges bylaw to ensure proper application of the

policy directives from the OCP.

The operating and financial environment is becoming

more complex, and the demand for increasing service

levels means the District must be innovative in its search

for ways to promote efficiency and effectiveness in the

delivery of services.

Message from the Chief Financial Officer

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Municipal Services and Operations

Services provided by the District include:

Legislative (bylaws, corporate policies and procedures)

Policing

Fire protection

Fire inspection

Building permits and inspection

Bylaw enforcement

Business licensing

Planning services

Engineering services

Street and sidewalk maintenance, construction and

reconstruction

Snow removal

Drainage system maintenance

Street lighting

Parks Maintenance

Cemetery operations

Public transit

Acting as a collection authority for other taxation jurisdictions

Sanitary sewer collection system, operation, maintenance and construction

Water system operation as a subcontracted service of the Regional District of North Okanagan

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2016 Strategic Priorities

Strategic Direction Strategic Objective Target Completion

Corporate Governance

Collaboration with Other Local

Governments

Discussions with RDNO regarding process to review the

Master Water Plan

2016/2017

OCP Projects Finalize the OCP revision/update; address issue of

secondary suites and affordable housing; guiding

direction of development

2016

Active Lifestyle

Parks Master Plan Complete a Parks Master Plan; realistic and achievable; high level and simple; clearly identify goals, values and principles; comprehensive inventory of parks; identify strategies to create, develop and maintain paths and trails; will include assessment of the Log House and WI hall.

2016

Infrastructure

Safe Routes to School Identify alternatives and options to address safe routes

to school; be realistic and achievable; identify

standards for infrastructure

2016 but ongoing

priority in evaluating

infrastructure

projects.

Environment

Lagoon Identify goals, values and principles for the Lagoon;

should the lagoon integrate with the storm management

plan; local water feature

2016/2017

Coldstream Creek Water Quality Implement the findings of the Sensitive Habitat

Inventory and Mapping (SHIM) priorities; review SHIM

project for eligible projects; Lavington Wetland Project

2016- Lavington

Wetland Project but

ongoing

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2017 Strategic Priorities

Strategic Direction Strategic Objective Target Completion

Corporate Governance

Collaboration with Other Local

Governments

Discussions with RDNO regarding process to review the

Master Water Plan

2017/2018

Zoning Bylaw Update Align bylaw to be consistent with OCP and changing expectations

2017

DCC Bylaw Update Major update to the existing DCC Bylaw (Roads, Sanitary, Drainage) with the addition of Parks DCC’s; alignment and consistency with the OCP and Zoning bylaws; align with changing expectations

2017

Community Hall Identify goals, values and principles for the WI Hall;

identify financial strategy for replacement of WI Hall

2017/2018

Active Lifestyle

Parks & Trail Improvements Implement projects from the Bicycle Pedestrian Master

Plan and Parks Master Plan. Coldstream Creek Bike

Path; Stenquist Parks Improvements; Lavington Park

Improvements; Sovereign Park Improvements;

Kalamalka Lake Road Multi-Use Path Design

2017/2018

Infrastructure

Transportation Network Implement Pavement Management Program; improve

non-vehicular modes of transportation; Kidston Road

Realignment; Buchanan Road Path planning; Sanitary

sewer – planning and pre-design (Area A); drainage

projects

2017/2018

Environment

Coldstream Creek Water Quality Implement the findings of the Sensitive Habitat

Inventory and Mapping (SHIM) priorities; possible

projects from Water Quality and Land Use Study Phase II

Ongoing with new

initiatives each year

Lagoon Identify goals, values and principles for the Lagoon;

should the lagoon integrate with the storm management

plan; local water feature

2017/2018

Corporate Administration

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The Administration Department is the link between

Coldstream residents, Council, staff and outside

government agencies.

Key responsibilities include the following:

Implementing policy direction as determined by

District Council;

Providing leadership and direction to staff in

fulfilling the various departmental directives and

responsibilities;

Ensuring timely and appropriate administrative

support and information flow to Council;

Maintaining accessibility to the public through

notifications and through a user-friendly website;

Ensuring timely access to information and records

by staff, the public and Council;

Updating and maintaining bylaws and policies;

2016 Highlights

Discussions with Coldstream’s partners in Greater Vernon

continued over shared services, including water and parks.

The development of a new Master Water Plan is being

prepared with Coldstream’s partners in the service.

Staff continued with the reorganization of the District’s

records management system and made improvements to

the online Council and Committee agendas to enhance the

electronic agenda experience for Council, staff and the

public.

Keri-Ann Austin Director of Corporate Administration

2017 Outlook

Communication continues to be a priority for the

department. Planned improvements to the District website

will further enhance the online experience of those users

seeking information from the District.

Bylaw enforcement will continue to operate on a complaint-

based system. There are several issues that continually

generate complaints such as the Kalavista Boat Launch and

parking lot, non-agricultural activities on agricultural lands,

movable storage containers and secondary suites. The

Commissionaires further assist the District with additional

bylaw enforcement and patrolling responsibilities from the

restructuring of the parks.

CORPORATE ADMINISTRATION

Bylaw Enforcement

Legislative Services

Freedom of Information

Financial Administration

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The Finance Department is responsible for all matters of

financial administration for the District of Coldstream as

well as management of the District’s information services.

Specific responsibilities include the following:

Financial management, planning, reporting and

analysis;

Administration of the District’s assets through

budgets, financial and internal control systems and

valuations;

Collection of taxes, utility usage and other revenue

sources;

Cash, portfolio and debt management; expending

municipal money as authorized;

Insurance claims and risk management;

Purchasing including improving policy and process;

Information technology management, including

hardware and software acquisition and maintenance.

2016 Highlights

The District’s operating results were stronger than expected

in 2016. Development activity continued to be strong in

2016 and paralleled that of 2015. Building permit fee

revenue continued to meet budgeted targets. Additionally,

increased revenues from user fees and sales of services

continue to help mitigate annual tax increases. Senior

government funding continues to play an integral part of

the District’s overall operations.

The District continues to be proactive in implementing

financial policies to better position the District for the

future. Of the 3.5% tax rate increase approved by Council,

2.75% was allocated for infrastructure needs and will allow

improvements to the District’s pavement management

program as well as future land acquisitions and drainage

issues.

The Department is responsible to provide financial reporting

which includes long-term planning, annual budget

development, accounting, procurement and statutory

financial reporting; responsible for presenting an annual

five-year financial plan which establishes financial and

programming priorities. The Department also keeps

Management and Council informed about the District’s

financial performance on a regular basis, ensuring the

District meets its annual budget and targeted savings.

Patricia (Pat) Higgins Director of Financial Administration 2017 Outlook Communicating with the public continues to be an

important part of delivering local government services. In

conjunction with Administration, further implementation of

the Corporate Communication Strategy will continue to

promote communication with the community.

It is also the Department’s focus to provide maximum

efficiency and reasonable taxation, while also making

provision for future infrastructure and service needs. The

Department is committed to sound financial management of

its operations, debt and reserve balances and addressing

our aging municipal infrastructure. The District will

effectively plan and steward the continuance of healthy

fiscal management on these issues for current and future

generations.

FINANCIAL ADMINISTRATION

Accounting & Information Technology

Financial Planning & Budget

Taxes & Utilities

Risk Management


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The Infrastructure Services Department is responsible for all

operational matters of the District of Coldstream. Specific

responsibilities include:

Planning, design and construction of the District’s

infrastructure, including roads and sewer;

Reviewing and inspecting subdivision applications

and construction;

Reviewing all development applications for impact

on servicing and infrastructure;

Planning for capital projects;

Maintenance of the District’s fleet;

Maintenance of the sewer system;

Maintenance of the water system under sub-

contract to Greater Vernon Water Utility;

Signage and traffic marking;

Maintenance of community parks.

2016 Highlights

Infrastructure Services had another busy year in 2016. The

annual road maintenance program continued with asphalt

resurfacing and curb replacement at Rochdell Road, Tassie

Drive, Cactus Drive, Venables Drive, Scenic Drive and

Brewer Road.

The purpose of this program is to ensure that the long-term

cost of maintaining roads is minimized. A comprehensive

analysis of Coldstream’s roads was conducted in 2013 and

included an investment/benefit analysis to optimize the

monies invested in our roads. The optimal time to

rehabilitate roads is quite some time prior to complete

failure.

A significant number of drainage upgrades were completed

throughout the community, focusing on areas that have

been ongoing concerns of residents and staff. Projects

included:

Kal beach parking area with catch basins and

infiltration chambers installed

Braeburn Path upgrades which lowered a manhole

and reprofiled the path to redirect the flow of

water to an adjacent storm detention pond

Kickwillie Loop additional catch basins were

installed to tie into existing system

Lakeview Road upgrade culvert to collect run off

from Highway 97

Michael Baker Director of Infrastructure Services

With the District taking over care and control of its local

parks in 2014, Council deemed it necessary to provide a

plan for how the parks system will be managed going into

the future. A consultant was contracted to complete a

Parks Master Plan. Over a period of several months,

meetings were held with residents and stakeholders, and a

survey was sent to Coldstream residents asking for their

opinions on a variety of parks subjects. The final Plan was

completed 2016.

A long-standing project was completed in the fall which saw

District staff design, construct and install a new pressure-

reducing station on Brewer Road. With the addition of the

station staff were able to eliminate two dead ends in the

system and loop the water main through the station. This

not only addressed water quality concerns but also

increased fire flows in the area.

INFRASTRUCTURE SERVICES

Public Works

Utility Services

Parks Maintenance

Fleet


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The District was approved for a Federal Gas Tax grant to

construct the Coldstream Creek Intercepted Groundwater

Management Project. This project will seek to lower the

level of contaminants entering Coldstream Creek, as part of

the continuing program to improve water quality. In the fall

of 2016, the District constructed a ditch to intercept

numerous storm outfalls to a constructed wetland near the

intersection of School Road and Highway 6.

The wetland contains a gently sloped channel that allows

water to flow across a planted area. Excess amounts of

particulates are flushed into the creek through these

particular storms outfalls, and the wetland will act to filter

the particulates and any contaminants they may contain

prior to discharging stormwater into the creek.

The project consists of diversion piping, the wetland,

discharge structure and plants. There will be immediate

benefits with the wetland, and the plants are expected to

provide additional filtration within a couple of years.

2017 Outlook

There are a number of specific roads identified for roads

maintenance in 2017 including an overlay on Kalamalka

Road from Giles Drive to Highway 6, and on Lavington Way

from Bessette Road to School Road

Council further approved a number of drainage

improvement projects for 2017 that will continue to address

needs that have arisen in past years storm events.

Grant applications will be submitted in the amount of

$300,000 for the Coldstream Creek Bike Path and $107,900

to complete the design work for a Sewer Line Extension to

lateral roads in the vicinity of the truck line along

Kalamalka Road to Mackie Drive.

The District has also entered into an agreement with the

Regional District to provide services for the sub regional

parks and the athletic park. With the added services, some

additional resources will be required to meet these needs.

Council authorized a number of pieces of equipment to

provide ongoing maintenance of the green spaces and

natural and artificial turfs.


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Department responsibilities include:

Assisting and advising Council on growth

management, development, long-range policy

planning, ongoing improvements and amendments

to the Official Community Plan (OCP) and Zoning

Bylaw.

Subdivision review and approvals.

Review and processing of development applications

(i.e., Official Community Plan amendments, Zoning

Bylaw amendments, development variance

permits, development permits, Agricultural Land

Reserve).

Building inspections and business licensing

2016 Highlights

The number of development applications that were

submitted in 2016 increased from the 2015 level of activity.

In 2015, 11 applications were processed and in 2016 staff

handled 18 applications consisting of:

5 subdivision applications;

8 development variance permit applications;

2 rezoning applications;

3 ALR applications.

Completion of the District’s Official Community Plan

continued to be the primary focus in 2016.

The District of Coldstream adopted an updated Official

Community Plan (OCP) on June 27, 2016. The OCP sets out

policies for the development of the community over the

next few years. Policies are based on a variety of factors

such as expected growth rates, environmental quality,

development risks (flooding, mudslides, rockfall), economic

growth, farm industry and quality of life. All these were

considered in the context of broad community values

important to the residents of Coldstream, be it protecting

the environment, supporting the farm industry, having

affordable infrastructure, being able to access green space

and parks, or preserving the inherent beauty of the

community.

Mike Reiley Director of Development Services

DEVELOPMENT SERVICES

Current & Long Range Planning

Subdivision Approval

Official Community Plan and Zoning Issues

Building Inspection


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Building permits are issued for activities including, but not

limited to, residential buildings, commercial buildings,

accessory buildings, renovations, demolitions, swimming

pools and mobile homes. The chart below highlights the

change in the number of building permits issued over the

past five years. During 2012 there was an increased number

of renovation projects as opposed to new construction,

while in 2013-2014 the majority of the building activity was

tied to the construction of single family and duplex/mixed

units. The number of housing units remained consistent

between 2015 and 2016 as well as construction values.

The Building Department has been consistent in its goal to

ensure permit turnaround is timely, with a target of three

weeks to issue a permit. With the construction activity

leveling off, more time is available for staff to close out

files and review and update bylaws.

Bylaw enforcement has continued to operate on a

complaint basis to ensure that compliance is maintained at

a reasonable cost.

This division is also responsible for parking and traffic

enforcement. The Commissionaires have been contracted

for the past several years to provide parking enforcement

services during the busy tourist season. The

Commissionaires perform this function very well,

maintaining a consistent daily presence which serves to

minimize complaints to the District.

Business License activity has increased slightly, with 266

active business licenses at the end of 2016 compared to 248

at the end of 2015. The number of businesses operating in

Coldstream has remained relatively constant over the past

several years. Businesses that have been tied to the

construction industry have experienced a decline in the

past couple of years. Overall, these businesses provide

services and jobs for the benefit of the community

2017 Outlook

For 2017, development activity is expected to be consistent

with 2016. A large amount of renovations and

redevelopment continues to take place throughout the

District, particularly properties along Kalamalka Lake.

Now that the OCP update is finalized there are several

other bylaws that will need to be revisited, most notably

the Zoning Bylaw. The Zoning Bylaw provides regulations

on allowed land use, density, siting, size, location and

shape of land, building and structures within a particular

zone.

0

10

20

30

40

50

60

2012 2013 2014 2015 2016

Building Permit Activity

Single/Family Units Duplex/Mixed Family Units

230

240

250

260

270

2012 2013 2014 2015 2016

Business Licenses Issued

Protective Services

19 | P a g e


Protective Services responsibilities include:

Prevention, control and extinguishment of fires

Protection of life and property

Enforcement of all municipal bylaws respecting

fire prevention

Overseeing the District’s Emergency Management

Occupational Health and Safety, Fire inspections

and fire investigation programs and services

2016 Highlights

The primary goal of 2016 was to implement the BC

Structure Firefighter Competency and Training Playbook

and provide training to deliver the highest level of service

as possible. Certification based training model will ensure

consistent training standards are implemented at both fire

halls. It also provides greater efficiencies and cooperation

when interacting with other fire departments within the

North Okanagan Regional District.

In this regard, the District hired a Protective Services

Coordinator to oversee and ensure compliance with the

Playbook as well as taking on the responsibility for the

District’s Emergency Management, Occupational Health and

Safety, fire inspections and fire investigations programs and

services.

The Fire Department participated in several community

activities such as May Day celebrations, Fire Safety week,

the Remembrance Day service and the Halloween fireworks

display on the pier at Kal Beach and Lavington Park.

The following table identifies the number and type of

callouts for the Fire Department over the past five years.

0

20

40

60

80

100

120

140

160

2012 2013 2014 2015 2016

Other

Mutual aid

Annunciator

Grass/brush fires

Burningcomplaints

HazMat

Ambulance/Policeassist

LAVINGTON FIRE HALL ON SCHOOL ROAD COLDSTREAM FIRE HALL ON ABERDEEN ROAD

Protective Services

20 | P a g e


The District’s Fire Department was called out a total 147

times in 2016. 2015 called outs were a total of 153.

Type of Call Coldstream Lavington

Structure Fires 0 1

Chimney Fires 0 0

Appliance Fires 0 2

Motor Vehicle Incidents 7 12

Ambulance/Police Assist 4 1

HazMat (chlorine, fuel spills) 0 0

Burning Complaints (bonfires,

illegal burns, etc.)

22 10

Grass/brush fires 4 3

Enunciator (various alarms) 27 11

Mutual Aid 0 3

Nuisance(fireworks, dumpsters) 0

Other 37 0

TOTAL 101 43

2017 Outlook

Training will continue to be a major focus going forward.

Goals for 2017 are to implement the “Passport”

accountability system that will enable safe and effective

accountability on the fire ground as well as an added level

of record and reporting when it comes to investigation.

Occupational Health and Safety will continue to guide the

direction of safe effective fire service management.

Equipment testing will take place to ensure 100%

compliance in 2017.

(down from (down from

108 in 2015) 45 in 2015)

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Management's Statement of Responsibility

These financial statements and accompanying schedules of the District of Coldstream are the responsibility of management and have been prepared in accordance with generally accepted accounting principles for local governments as established by the Public Sector Accounting Board of the Chartered Professional Accountants of Canada.

Management is responsible for implementing and maintaining a system of internal controls that are designed to provide reasonable assurance that assets are safeguarded, transactions are properly authorized and recorded, and reliable financial information is available on a timely basis for preparation of the financial statements. These systems are regularly monitored and evaluated by management.

These financial statements have been audited by BDO Canada LLP, independent external auditors appointed by the District of Coldstream. The following Independent Auditors' Report describes their responsibilities, scope of examination, and opinion on the District's financial statements. The external auditors have full access to Council.

Patricia (Pat) Higgins Director of Financial Administration

March 27, 2017

23 | P a g e


IBDO

To the Mayor and Council of the District of Coldstream

Tel: 250 545 2136 Fax: 250 545 3364 www.bdo.ca

BDO Canada LLP

2706 - 30th Avenue

Suite 202

Vernon BC V1T 286 Canada

Independent Auditor's Report

We have audited the accompanying financial statements of the District of Coldstream, which comprise the statement of financial position as at December 31, 2016 and the statement of operations and accumulated surplus, change in net financial liability, and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

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

Auditor's Responsibility

Our responsibility is to express an op1mon on these 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 whether the consolidated financial statements are free of 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 the auditor's judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating overall presentation of the 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, these financial statements present fairly, in all material respects, the financial position of the District of Coldstream as at December 31, 2016 and the results of its operations, changes in its net financial liability, and cash flows for the year then ended in accordance with Canadian public sector accounting standards.

BDO�LLP

Chartered Professional Accountants

Vernon, British Columbia March 27, 2017

BOO c-,nacta LLP, a Can.idian limited Uabiltty partnership, is a m(?mbcr of 800 International limitw, a UK corr.:pany limited by gtmrant1:e, and form-.; part of the inrematlonal BOO n-:atwork of independent member firms.

24 | P a g e


December 31

Financial assets Cash ft Portfolio Investments (Note 1) Accounts receivable (Note 2) Deposit - Municipal Finance Authority

Liabilities Accounts payable and accrued liabilities (Note 3) Deferred revenue (Note 5} Reserve - Municipal Finance Authority Development cost charges Debt (Note 6)

Net financial asset/(liability)

Non-financial assets inventory Prepaid expenses Tangible capital assets (Note 4)

Accumulated surplus (Note 7)

Contingent Liabilities (Note 14) Commitments (Note 15)

District of Coldstream

Statement of Financial Position

2016 2015

$ 6,356,363 $ 5,715,981 2,528,930 2,451,818

227,782 225,565

9,113,075 8,393,364

2,633,091 3,051,534 675

227,782 225,565 1,388,310 1,147,508 4,452,835 4,418,299

8,702,693 8,842,906

410,382 (449,542}

13,713 11,371 153,446 132,184

63,895!935 60,925,883

64,063,094 61,069,438

$64,473,476 $ 60,619,896

Director of Financial Administration

The accompanying summary of significant accounting policies and notes are an integral part of these financial statements.

25 | P a g e



Statement of Operations and Accumulated Surplus

For the year ended December 31 2016 2016 2015

Budget Actual Actual Revenues

Taxation-net $ 5,736,693 $ 5,735,015 $ 5,366,374 Grants in lieu of taxes 133,822 133,661 126,704 Sale of services 1,502,283 1,615,050 1,513,937 Licenses, fines and rentals 581,247 689,766 719,995 Return on investments 32,000 133,074 131,961

Unconditional grants 479,093 452,609 482,756 Conditional grants 1,233,035 503,448 1,150,572 Development cost charges 200,000 Developer contributions 4 049,690 90,938

9,898z 173 13,312,313 9,583,237

Expenses (Note 1 2) General government services 864,479 831,277 789,590 Protective services 2,179,991 1,950,889 1,817,896

Transportation services 3,450,776 3,654,367 3,495,503 Environmental health services 99,595 117,891 80,265 Development services 396,806 338,050 329,871 Park services 846,104 873,593 699,060 Sewer services 1,655,675 1,462,039 1,428,858 Interest 300,502 255,860 259,998

9,793,928 9,483,966 8,901,041

Annual surplus 104,245 3,828,347 682,196

Gain on disposal of tangible capital assets 25,233 2,544

Annual surplus (Note 13) 104,245 3,853,580 684,740

Accumulated surplus, beginning of year 60,619,896 60,619,896 59,935; 156

Accumulated surplus, end of year $60,724,141 $64,473,476 $ 60,619,896


26 | P a g e



Statement of Cash Flows

For the year ended December 31 2016 2015

Operating activities Cash received from:

Taxation $ 5,797,794 $ 5,277,287 Fees, permits, licenses and fines 2,298,586 2,111,451 Grants 956,057 1,633,328 Investments 133,074 131,960

9,185,511 91154,026

Cash paid for: Wages and benefits (2,831,615) (2,701,008) Materials and supplies (716,077) (728,132) Contracted services (2,707,503) (2,574,613) Interest charges (255,860) (259,998) Other (1,181,303) (795,201)

F,692,358) (7,058,952)

Cash provided by operating activities 1,493! 153 2,095,074

Capital activities Proceeds on sale of tangible capital assets 25,233 2,544 Purchase of tangible capital assets !1, 153

1341) (2,001,062)

!1,128,108) (1,998,518)

Financing activities Development cost charges 240,801 150,853 Proceeds of debt 250,000 Repayment of debt (215,464) (206,887)

275,337 (56,034)

Increase in cash and portfolio investments during year 640,382 40,522

Cash and portfolio investments, beginning of year 5,715,981 5,675,459

Cash and portfolio investments, end of year (Note 1) $ 6,356,363 $ 5,715,981


27 | P a g e



Statement of Change in Net Financial Liability

For the tear ended December 31

Annual surplus

Acquisition of tangible capital assets Amortization of tangible capital assets Gain on disposal of tangible capital assets Proceeds on disposal of tangible capital assets Acquisition of inventory Acquisition (use) of prepaid expense

Decrease (increase) in net financial asset/(liability)

Net financial liability, beginning of year

Net financial asset/�liabilitl!, end of �ear

2016

Budget

$ 104,245

(3,722,585) 2,109,689

{1,612,896)

(1,508,651)

(449,542)

$ �1,958, 193!

$

$

2016 2015

Actual Actual

3,853,580 s 684,740

(5,203,031) (2,091,999) 2,232,979 2,011,308

(25,233) (2,544) 25,233 2,544 (2,341) 1,939

{21,263) (9,364)

(2!993,656) (88,116)

859,924 596,624

(449,542) (1,046,166)

410,382 s (449,5421


28 | P a g e


December 3 1 , 201 6

Basis of Accounting

Basis of Consolidation

Revenue Recognition

Deferred Revenue

Tangible Capital Assets

District of Co ldstream Summary of Significant Accounting Policies

The financial statements of the District of Coldstream are prepared by management in accordance with local government accounting standards established by the Pub lic Sector Accounting Board ( "PSAB" ) of the Chartered Professional Accountants of Canada. The resources and operations of the District are segregated into various funds for accounting and financial reporting purposes, each being treated as a separate entity with responsibility for the stewardship of the assets allocated to it.

The financial statements are prepared using the accrual basis of accounting. The accrual basis of accounting records revenue as it is earned and measurable. Expenses are recognized as they are incurred and measurable based upon receipt of goods or services and/or creation of a legal obligation to pay .

The financial statements include all funds of the District. lnterfund revenues, expenditures, assets and liabilities have been eliminated.

Taxation revenues are recognized at the time of issuing the property tax notices for the fiscal year . Sale of services and user fee revenues are recognized when the service or product is provided by the District. Grant revenues are recognized when the funding becomes receivable.

Funds received for specific purposes which are externally restricted by legislation, regulation or agreement and are not avai lable for general municipal purposes are accounted for as deferred revenue on the statement of financial position. The revenue is recognized in the statement of operations in the year in which it _ is used for the specified purpose.

Tangible capital assets are recorded at cost which includes all amoun ts that are directly attributable to acquisition, construction, development or betterment of the asset. The cost, less residual value, of the tangible capital asset is amortized on a straight line basis over thei r estimated useful life as follows:

Land Land improvements Bui ldi ngs Vehicles Equipment Road infrastructure Drainage infrastructure Sewer infrastructure

not amortized 1 5 · 40 years 20 · 50 years 1 0 · 30 years 5 · 1 5 years 1 0 · 75 years 30 · 70 years 30 · 70 years

Assets under construction, work in progress, are not amortized until the asset is availab le for productive use.

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

29 | P a g e



District of Coldstream Summary of Significant Accounting Policies

Temporary Investments Temporary investments consist of guaranteed investment certificates with a chartered bank and deposits with the Municipal Finance Authority pooled investment money market funds. These investments are recorded at cost, which approximates their quoted market value. When, in the opinion of management, there is a permanent decline in value, investments are written down to their market value .

. Financial Instruments It is management's opinion that the District is not exposed to significant interest, currency or credit risks arising from its financial instruments, unless otherwise noted . The fair values of the District's financial instruments approximate their carrying values, unless otherwise noted .

Use of Estimates The financial statements of the District have been prepared by management in accordance with Canadian generally accepted accounting principles. As such, management is required to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Government Transfers Government transfers, which include legislative grants, are recognized in the financial statements in the period in which the events giving rise to the transfer occur, providing the transfers are authorized, any el igibility criteria have been met, and reasonable estimates of the amounts can be made.

Non-Financial Assets Non-financial assets are not avai lable to discharge existing liabilities and are held for use in the provision of services. They are not intended for sale in the ordinary course of operations. The change in non-financial assets during the year, together with the excess of revenues over expenses, provides the change in net financial liability for the year.

Development Cost Charges Development Cost Charge (DCC) levies are restricted by by-law in their use for road, drainage and sewer expenses and the revenue is deferred unti l the expenses are incurred. When DCC expenses are made, a corresponding amount is recorded as "Development cost charges" in revenues.

Contaminated Sites Liabi lity A contaminated site is a site at which substances occur in concentrations that exceed the maximum acceptable amounts ·under an environmental standard . Sites that are currently in productive use are only considered a contaminated site if an unexpected event results in contamination. A liabi lity for remediation of contaminated sites is recognized when the organization is directly responsible or accepts responsibility; it is expected that future economic benefits will be given up; and a reasonable estimate of the amount can be made. The liabi lity includes all costs directly attributable to remediation activities including post remediation operations, maintenance and monitoring. The liability is recorded net of any expected recoveries .

30 | P a g e




Summary of Significant Accounting Policies

Emp loyee Future Benefits Employees are entitled to sick leave benefits, accrued monthly, to a maximum of 1 80 days. Employees are entitled to a payout of their unused sick leave balance upon satisfaction of pre-established criteria. The District ' s cost of the sick leave benefits are accounted for based on the actuarial valuation. Actuarial gains and losses are amortized on a straightli ne basis over the expected average remaining service life of the employee group .

Budget The budget figures are from the Annual Budget Bylaw to be adopted by May 1 5 of each year. They have been reallocated to conform to PSAB financial statements . Subsequent amendments have been made by Council to reflect changes in the budget as required by law.

31 | P a g e


District of Coldstream Notes to Financial Statements


1 . Cash and Portfolio Investments

2.

3 .

Cash and Portfolio investments are comprised of the following: 20 1 6 201 5

Cash $ 2,929,346 $ 3 1 9, 807 Municipal Finance Authority - temporary investments 1 82, 1 76 680,45 1 Guaranteed I nvestment Certificates 3,244, 841 4,7 1 5 ,723

$ 6,3 5 6,363 $ 5 ,71 5 ,98 1

The restricted and unrestricted balances are as follows: 201 6 201 5

Restricted casti and cash equivalents Restricted revenues $ 1 , 388,985 $ 1 , 1 47, 508 Statutory reserves (Note 7) 3,523,802 2,754, 539

4,9 1 2 ,787 3,902,047 Unrestricted cash and cash equivalents 1,443,576 1 , 8 1 3 ,934

$ 6, 356, 363 $ 5 ,7 1 5 ,981

Temporary investments bear interest at 2 .08% (201 5 - 2 . 1 9%) while the Guaranteed Investment Certificates bear interest ranging from 1 . 30% to 2. 05% (201 5 - 1 . 60% to 2. 1 0%) with maturities ranging from Janua ry 201 7 to September 2021 .

Accounts Receivable

201 6 201 5

Federal Government $ 63 ,072 $ 1 00, 509 Taxes - current 396, 140 362,898

- a rrears 260, 1 98 222, 559 Utility billings 1 ,484,068 1 , 5 57,883 Trade 325,452 207,969

$ 2,528, 930 $ 2,451 ,8 1 8

Accounts Payables and Accrued Liabilities

201 6 201 5

Accounts payable and accrued liabilities $ 2,362, 3 6 6 $ 2,790, 1 1 6 Employee future benefits (Note 1 1 ) 270,725 26 1 ,41 8

$ 2,63 3,09 1 $ 3,05 1 , 5 34

32

| Pa

ge

District o

f Co

ldstrea

m | A

nn

ual R

epo

rt 20

16


Notes to Financia l Statements

December 3 1 , 20 1 6

4. Tangible Capital Assets HISTORICAL COST ACCUMU LATED AMORTIZATION

NET BOOK 20 1 6 Opening Additions Disposals Closing Opening Additions Disposals Closing VALUE

Land s 9, 355 , 891 $ 41 0,846 $ s 9,766,737 $ s s $ $ 9 ,766 ,737 Land improvements . 1 ,988,763 1 ,904,500 3 ,893 ,263 595, 879 1 64, 659 760,538 3 , 1 32 , 72 5 Bui ldings 7 , 395,685 450,000 7,845,685 1 , 1 02 ,352 1 71 ,0TI 1 ,273,424 6 , 572, 26 1 Vehic les 5,063,640 16 1 ,847 333, 1 66 4, 892 , 321 2 , 366, 1 63 2 1 3 , 288 333, 1 66 2,246,285 2 ,646 ,036 Equipment 2 , 107,697 727,865 1 1 1 , 61 4 2, 723 ,948 1 , 554, 780 1 44, 1 55 1 1 1 ,6 14 1 , 587, 321 1 , 1 36 ,627 Road infrastructu re 33,907,425 951 ,626 65,932 34,793 , 1 1 9 1 3,287,788 966,040 65,932 14 , 1 87, 896 20,605 ,223 Drainage infrastructure 1 3 ,250, 1 05 305,398 1 3 , 555 , 503 4,036, 762 239,781 4,276, 543 9, 278 ,9 60 Sewer infrastructure 1 7,007,460 124,462 1 7, 1 31 ,922 6,250, 249 333,984 6, 584,233 1 0, 547,689 Work in progress 43, 1 90 1 66,487 209,677 209 ,677

$ 90, 1 1 9, 856 $ 5 , 203 ,031 $ 5 1 0 , 7 1 2 $ 94 ,8 1 2 , 1 7 5 · $ 29, 1 9 3,97 3 $ 2 , 232,979 $ 5 1 0,7 1 2 $ 30,9 1 6, 240 $ 6 3 , 895 ,935

HISTORICAL COST ACCUMULATED AMORTIZATION NET BOOK

2015 Opening Additions Disposals Closing Opening Additions Disposals C losing VALUE

Land s 9, 264,953 $ 90,938 $ s 9, 355,891 s s s $ $ 9 , 3 55 ,891 Land improvements 1 ,897 ,043 9 1 , 720 1 , 988,763 51 7,092 78,787 595, 879 1 , 392, 884 Buildings 7,395 ,685 7, 395,685 944,030 1 58 , 322 1 , 1 02,352 6 , 29 3 , 3 3 3 Veh icles 4, 604,466 478,472 1 9,298 5 ,063,640 2 ,21 1 ,235 1 74,226 1 9, 298 2 , 366, 1 63 2, 697,477 Equipment 1 ,990,206 1 1 7,491 2, 1 07,697 1 ,451 , 342 1 03,438 1 , 554, 780 552,9 1 7 Road infrastructu re 32,549, 391 1 ,488,926 1 30, 892 33, 907,425 12 ,492,043 926,637 1 30, 892 1 3,287,788 20, 6 1 9 ,637 Drainage infrastructure 1 3 ,250 , 105 1 3 , 250, 1 05 3 ,799,939 236,823 4,036, 762 9, 2 1 3 , 343 Sewer infrastructure 1 6,954, 394 53,066 1 7,007,460 5,91 7, 1 74 333 ,075 6 ,250,249 10 ,757 , 2 1 1 Work in progress 271 ,805 4, 706 233, 321 43, 190 4 3 , 1 90

$ 88, 1 7 8,048 $ 2 ,325 ,3 1 9 $ 383, 5 1 1 $ 90, 1 1 9,856 $ 27, 3 3 2, 8 5 5 $ 2,0 1 1 , 308 $ 1 50,1 90 $ 29 , 1 93 ,973 $ 60,925 ,883

During the year, $4 , 049,690 was contributed by developers broken down as follows: $359 ,280 Land, $450, 000 Buildings, $ 1 , 904, 500 Land Improvements, $408,874 Roads, $581 , 250 Equipment, $ 1 87, 784 Drainage, $ 1 24,462 Sewer, $33 , 540 Streetlights

33 | P a g e



Notes to Financial Statements


5 . Deferred Revenue

6 .

Balance, beginning of year Contributions received Capital projects Interest earned Revenue Recognized

Balance, end of year

s

s

201 6

675

675

201 5

$ 673,286 471 ,700 (844,674)

4, 337 (304,649 )

$

Gas Tax Agreement funding is provided by the Government of Canada. The District entered into a Renewed Gas Tax Agreement that differed in several key ways from the previous agreement. These changes have resulted in the District"s revisiting the accounting treatment relating to the receipt and expenditure of these funds. As a result, beginning in 201 5, Gas Tax transfers wil l be recorded as revenues when received, then held in surplus, and no longer classified as deferred revenue. The Renewed Gas Tax Agreement also p rovides that any unspent amounts from the previous agreement will be brought forward to the new agreement.

201 6 Deferred Revenue is from payment received for WI Hall rental in 201 7.

Debt

Maturity Interest Bylaw Purpose Date Rate 201 6 201 5

Debenture debt outstanding: 1 438 D rainage 201 7 5 . 85% s 33, 1 75 $ 64,770 2214 Buildings 2032 4. 52% 2,983 ,545 3 , 1 1 4,993 25 1 3 Retaining Wall 203 1 3 .25% 4 1 , 2 1 7 43, 1 96 2535 Building 2032 3 .40% 1 , 1 44,898 1 , 1 95 , 340

4, 202,835 4,41 8,299 Other debt outstanding:

1 689 General Capital 202 1 1 . 38% 250,000

s 4,452,835 $ 4,41 8,299

Future p rincipal requi_rements are due as follows : Year Amount 201 7 $ 205,71 0 201 8 1 92, 582 201 9 1 92, 582 2020 1 92, 582 2021 1 92, 582

Thereafter 1 , 506, 957 Actuarial adjustments 1 , 969 , 840

$ 4,452,835

34 | P a g e


December 3 1, 20 1 6

7. Accumulated Surplus


Notes to Fi nancial Statements

The accumulated surplus consists of individual fund balances and reserves as fol lows :

20 1 6 201 5

Surplus I nvested in tangible capital assets $ 59 ,670, 3 8 8 $ 56, 507, 584 General surplus (deficit) ( 1 ,972,079) ( 1 ,454, 1 37) Sewer surplus 1 ,724,269 1 , 5 1 8 ,779

59 ,422,578 56, 572, 226

Operating reserves Community Works (Gas Tax) 675,754 304, 649 Police stabilization 1 80,000 2 1 6,6 1 1 Election 1 0,000 5 , 000 Snow removal 1 0,000 1 0, 000 Parks 326,3 1 5 339, 329 Fire equipment 1 0,000 35 ,000 Community amenity 2 1,6 1 9 29, 1 1 9 Fire training centre 1 9 , 1 41 Bui lding stabilization 25,000 25,000 Road improvement 1 3,780 1 3 ,780 Water devolution 49,71 1 49,71 1 Future expenditures 1 89 , 9 1 7 205,792 Economic Development ft Planning 1 5 ,000 40,000

1 , 527,096 1 , 293, 1 32

Statutory reserves Equipment Replacement Reserve 749,3 39 649,497 Sewer Improvement Fund 776,695 646, 385 Land Sale Reserve Fund 1 02,962 1 36,2 1 5 Building Reserve Fund 466,8 3 5 360, 1 35 Road Reserve Fund 1 ,235,223 747, 830 Drainage Reserve Fund 1 92,748 2 14,476

3 ,523,802 2,754, 538

$ 64,473 ,476 $ 60,6 1 9, 896

35 | P a g e



8 . Trust Funds



The District has excluded the following trust funds and associated cash from the Statement of Financial Position and related interest earnings and transactions from the Statement of Operations and Accumulated Surplus:

a) Cemetery Trust Fund

The District operates and maintains the Coldstream Cemetery. As required under Provincial legislation, a portion of the plot sales and marker installation fees must be retained for the future maintenance of the cemetery.

Balance, beginning of year I nterest income Care fund contributions Contribution to maintenance


b) High lands Crossing Trust Fund

$

$

201 6

1 23,022 $ 2, 201 5 ,045

(2, 20 1 )

1 28,067 $

20 1 5

1 1 9,037 1 , 617 3, 985

( 1 ,6 1 7)

1 23,022

The District received funds in advance from a developer to prepay a twenty-year rai lroad crossing lease. These funds are held in trust until required annual ly to meet the District's commitment.

Balance, beginning of year Interest income


$

$

201 6

2,56 1 31

2, 592

$

$

20 1 5

2,530

31

2 ,56 1

36 | P a g e


December 3 1 201 6

9. Taxation Revenue


Notes to Financial Statements

The District is required to collect taxes on behalf of and transfer these amounts to the government agencies noted below:

20 1 6 201 5

Tax Collected: General Purposes $ 5,735,0 1 5 $ 5 , 366, 374 Collections for other Governments 8,082,058 7,883,048

1 3,8 1 7,073 13 ,249 , 422 Less Transfers to Other Governments:

School Tax 4,734,409 4, 659 , 327 North Okanagan Regional Hospital District 6 1 8,5 5 3 601 , 564 North Okanagan Regional District 2, 1 74, 1 06 2, 080, 607 Municipal Finance Authority 439 412 British Colum bia Assessment Authority 1 24,6 1 1 1 28, 020 Okanagan Regional Library 429,940 413, 1 1 8

$ 8,082,058 $ 7,883,048

1 0. Government Transfers

20 1 6 201 5

Federal Community Works Fund - Gas Tax $ 48 7,592 $ 1 , 1 49 , 330

Provincia l Climate Action Revenue Incentive Program 1 0, 569 10,290 Strategic Community Investment Funds 422, 847 453,273 BC Highways - Street Lighting 1 ,7 1 3 1 , 242

Total Provincial 435, 1 29 464, 805

Other Okanagan Basin Water Board 1 9, 1 93 1 9 , 193 Municipal Insurance Association 6,950 Community Wildfire Planning Grant 7, 1 93

Total Other 3 3,336 1 9 , 1 9 3

$ 956,05 7 $ 1 ,633, 328

37 | P a g e


December 31, 2016

11. Employee Future Benefits


The District provides certain post-employment benefits in the form of vested sick leave benefits to its employees.

2016 201 5

Accrued Benefit Obligation, beginning of year $ 208,080 $ 21 1 , 747

Service cost 23, 874 21 ,604 Interest cost 6,768 6, 9 1 0 Actual benefits paid (25,095) (4,43 1 ) Actuarial (Gain) / Loss 7,591 (27,750)

Accrued Benefit Obligation, end of year $ 22 1 ,218 $ 208,080

An actuarial valuation for these benefits was performed to determine the District's accrued benefit obligation as at December 3 1 , 201 6 . The new valuation, a long with actual benefit payments differing from expected, created an actuarial gain at December 31 , 201 6. The actuarial gain is being amortized over a period equal to the employees' average remaining service lifetime ( 1 0.4 years).

R.econciliation of funded status: 2016 201 5

Deficit at end of year $ (221,2 1 8) $ (208, 080) Unamortized net actuarial (gain) / loss (49, 507) (53 , 338)

Accrued Benefit Liabi lity $ (270,725) $ (261 ,41 8)

Actuarial assumptions used to determine the District 's accrued benefit obligation are as follows:

Discount rate Expected future inflation rate Expected wage and salary range increases

2016

3 . 30% 2 . 50% 2 . 50%

201 5

3 .00% 2. 50% 2. 50%

38 | P a g e




December 3 1 , 20 1 6

1 2. Object Reporting

1 3 .

20 1 6 201 5

Advertising and promotion $ 34, 6 1 6 $ 37,736 Amortization 2, 232, 979 2,0 1 1 , 308 Equipment and facilities 475 , 1 98 469 ,447 I nsurance 1 37,485 1 34, 297 I nterest 255,860 2 59,998 Memberships and licenses 1 8,570 1 9 ,431 Miscellaneous 84,774 76,002 Office supplies 49 ,826 48,489 Policing costs 669,3 1 3 670,335 Professional development 1 88,237 95,455 Professional services 1 , 3 5 3,062 1 , 334,285 Sewer contract 685 , 1 29 569 ,992 Supplies and materials 1 9 1 ,053 2 1 0, 1 96 Telephone and utilities 276,249 263,061 Wages and benefits 2,83 1 ,6 1 5 2,701 ,009

$ 9,483,966 $ 8,901 ,041

Financial Plan

The Financial Plan anticipated use of surpluses accumulated in previous years to balance against current year expenditures in excess of current year revenues. The fol lowing shows how these amounts were combined :

20 1 6 201 5

Addback: Capi tal expenditures 3,722,585 3,062,385 Debt principal payments 1 1 4,823 1 1 4,823 Less: Amortization (2, 1 09 , 689) (1 , 995, 5 10 ) Debt proceeds (250,000) Budgeted transfers from accumu lated surplus ( 1 , 373,474) (1 , 800, 854)

Adjusted Annual Surplus (Deficit) $ 1 04,245 $ (61 9, 1 56)

39 | P a g e


December 31, 2016

14. Contingent Liabi lities


a) Commencing December 3 1 , 1 987 , the District entered into a self-insurance plan with other British Columbia municipalities. The District is obliged under the plan to pay a percentage of its fellow insurers ' losses. The District pays an annual p remium, which is anticipated to be adequate to cover any losses incurred.

b) The District is responsible as a member of the Regional District of North Okanagan for its proportion of any operating deficits related to the functions in which it participates.

The Regional District of North Okanagan debt is, under the provisions of the Local Government Act, a di rect, joint and several liability of the District and each member Municipality within the district, includi ng the Corporation of the District of Coldstream.

The Municipal Finance Authority debentures are covered by a loan agreement with the Municipal Finance Authority which provides that, if at any time the payments provided for in the agreement are not sufficient to meet the Authority"s obligations in respect of such borrowings, the resulting deficiency becomes a liability of the District .

c) The municipali ty and its employees contribute to the Municipal Pension Plan (the P lan), a jointly trusteed pension plan. The board of trustees, representing plan members and employers, is responsible for overseeing the management of the Plan, including investment of the assets and administration of benefits . The Plan is a multi -emp loyer contributory pension plan . Basic pension benefits p rovided are based on a fo rmula. As at December 31 , 201 6 The plan has about 1 89, 000 active members and approximately 85, 000 reti red members. Active members include approximately 37 contributors from the District of Coldstream.

Every three years, an actuarial valuation is performed to assess the financial position of the plan and adequacy of plan funding . The actuary determines an appropriate combined employer and member contribution rate to fund the plan. The actuary's calculated . contribution rate is based on the entry-age normal cost method, which p roduces the long-term rate of member and employer contributions sufficient to provide benefits for average future entrants to the p lan. This rate is then adj usted to the extent there is amortization of any funding deficit.

The most recent valuation for the Municipal Pension Plan as at December 3 1 , 201 5, indi cated a $2,224 million funding surplus for basic pension benefits on an ongoing concern basis. The next valuation wil l be as at December 3 1 , 201 8, with results avai lable in 201 9 .

The District of Coldstream paid $249, 824 (201 5 - $245 ,033) for employer contributions while employees contributed $2 1 6,923 (201 5 - $21 1 , 788) to the plan in fiscal 201 6 .

d ) The District i s the defendant in various lawsuits. I n the opinion o f management, the overall estimation of loss is not determinable . These c laims have not been provided for in the financial statements. Settlement, if any, made with respect to these actions would be expected to be accounted for as a change to expenditures in the period in which realization -is known.

e) The bank has issued, on behalf of the District of Coldstream, letters of guarantee with respect to the College Way Extension (G rid Road) . The aggregate amount outstanding at December 3 1 , 201 6 was approximately $40,000 (201 5 - $40, 000).

40 | P a g e


December 3 1 , 20 1 6

1 5 . Commitments

District of Coldstream Notes to Financia l Statements

a) The District has entered into a lease agreement with the City of Vernon to accommodate the RCMP positions for which the District is responsible . The lease is for a five year term and expires December 31 , 2016. Annual lease payments are based on the proportion of the District's detail strength to the total detachment strength . The payment for the next year wil l be approximately $72, 083.

b) The District of Coldstream has entered into a 5 year agreement with the Regional District of the North Okanagan whereby the District operates the portion of the water system that is located within and east of the District borders . Under the agreement the District is responsible for the day to day operation of the water system, and is wholly reimbursed for the operating expenditures made to undertake these duties.

c ) The District of Coldstream has an operating line of credit with the Bank of Montreal for an authorized amount of $800,000, bearing interest at bank prime rate. At December 3 1 , 201 6, the balance outstanding on the operating line of credit was $nil (201 5 - $ni l ) .

41 | P a g e



Schedule 1 - Segment Disclosure December 3 1 , 201 6

The District of Coldstream is a diversified municipal government institution that provides a wide range of services to its citizens. The District services are provided by departments and their activities are reported in these Service Areas. Departments disclosed in the Segmented I nformation , along with the services they provide are as follows:

General Government Services • Mayor ft Council, Administration and Finance Departments The Departments within General Government Services are responsible for adopting bylaws; adopting administrative policy; levying taxes; acquiring, disposing and managing District assets; ensuring effective financial management; monitoring performance and ensuring that District service standards are met.

Protective Services - Police Department and Fire Department The mandates of the Police and Fire Departmen ts are to enforce laws, prevent crime, and maintain peace, order, and security by protecting life, property and the envi ronment through the provision of emergency response .

Infrastructure Services - Engineering Department and Public Works Department The Infrastructure Department is responsible for the planning and design of the District's infrastructure . The Public works department is responsible for the maintenance of the District infrastructure.

Development Services - P lanning and Development Department The Planning and Development Departmen t is responsible for preparing land use plans, bylaws and policies for development in the District and for reviewing and approving new development .

Building and Bylaw Services • Bui !ding Department and Bylaw Department The Building and Bylaw department is responsible for conducting inspections of construction projects, including both new and renovation projects, fire inspections, business licensing and ensuring compliance with existing regu lations.

Revenues

General Government

Protective Infrastructure Development Services Services Services

Building a Bylaw 201 6 Z01 5

Taxation - net $ 5,868, 676 $ $ S S $ 5,868 , 6 76 S 5 ,493 ,078 Sale of services 1 ,479, 392 9,Z50 1 , 488, 641 1 , 51 3 ,937 License , fines a renta ls 360,41 6 400 455,359 81 6 , 1 75 719,995 Return on investmen ts 1 33,074 1 3 3 ,074 1 31 ,961 Grants Z4, 71 2 41 , 3 1 8 890 ,0Z7 9 5 6 , 0 57 1 , 633,3Z8 Developer Contribution ____________ 4�,0_4_9�, 6_9_0 _____________ 4_,0_4_9�,_69_0 ____ 9_0�, 9_3_8

Expenses Advertising Amortization Equipment/facilities I nsurance I n terest Memberships Miscellaneous Office supplies Policing costs Professional Dev . Professional Serv. Sewer contract Supplies Telephone ft utili ties Wages ft benefits

Annual surplus (deficit)

Gain on disposal of tangible capital assets

6, 386,878

Z9,464 1 79, 347

1 Z5 ,449 Z55,860

14,Z91 43,753 47, 1 1 4

21,069 15 1 ,59Z

44,367 769,466

1 ,681 ,77Z

4,705, 1 06

41 , 3 1 8

Z03 , 593

1 0,677

Z,064 1 0,043

2 ,71Z 669,3 1 3 1 53 ,916

62,683

1 ,450 Z1 ,914

356,587

1 ,494,952

( 1 ,453,634)

Annual surplus (deficit) S 4,705 , 1 06 S ( 1 , 453 ,634) S

6 ,41 9, 509

1 ,850,039 475 , 1 98

1 , 359

345 20,047

7,456 1 , 1 Z4, 1 99

685, 1 Z9 1 89,603 Z08,481

1 , 3 1 4,36Z

5 , 876,Z1 8

543,Z91

25,233

9 ,250

5, 1 5Z

550

4 , 1Z6 1 4,587

676 ZZ4,039

Z49, 1 30

(Z39,880)

568, 5Z4 $ (239,880) $

455,359 1 3 , 3 1 2, 3 1 3

1 ,3ZO 1 0,930

1 , 670

81Z 1 67, 1 6 1

1 8 1 , 893

Z73 ,466

34, 6 1 6 2 ,Z32 ,979

475 , 1 98 1 37,485 Z S S , 860

1 8 , 570

84,774 49,826

669 , 3 1 3 1 88 , Z37

1 , 3 53 ,06 2 685, 1 29 1 9 1 , 0 5 3 Z76, 249

2 , 83 1 , 6 1 5

9,48 3 , 966

3 , 828, 347

2 5 , 2 3 3

Z73,466 $ 3 ,853 , 580 $

9,583,Z37

37,736 Z,01 1 ,308

469,447 1 34,297 259,998

1 9, 431 76,00Z 48,489

670,335 95,455

1 , 334,Z85 569,99Z Z1 0, 1 96 Z63,061

2,701 , 009

8, 901 ,041

68Z, 196

2,544

684, 740

42 | P a g e


Revenue by Source

43 | P a g e


(in $1,000's except per capita figures) 2016 2015 2014 2013 2012

Taxation revenues

5,868 5,493 5,344 4,967 4,776

Sale of services

1,354 1,514 1,452 1,453 1,536

Licenses, fines and rentals 951 720 842 689 614

Return on investments 133 132 113 101 97

Grants

956 1,633 877 473 708

Development Cost Charges - - - - 303

Developer/Other Transfers 4,050 91 6,257 676 -

$ 13,312 $ 9,583 $ 14,885 $ 8,359 $ 8,034

TOTAL REVENUE PER CAPITA $ 1,217 $ 886 $ 1,411 $ 822 $ 782

PROPORTION OF TAXATION REVENUE TO TOTAL REVENUE 44.1% 57.3% 35.9% 59.4% 59.4%

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2012 2013 2014 2015 2016

Consolidated Revenue By Source (In $1,000's)

Developer/Other Transfers

Development Cost Charges

Grants

Return on investments

Licenses, fines and rentals

Sale of services

Taxation revenues

Expenses by Function

44 | P a g e



General government

$ 831 $ 790 $ 848 $ 905 $ 855

Protective services

1,951 1,818 1,737 1,799 1,799

Transportation services 3,529 3,495 3,334 3,380 3,303

Environmental health services 118 80 106 164 174

Development services

338 330 334 391 320

Parks services

999 699 613 - -

Sewer services

1,462 1,429 1,278 1,331 1,317

Interest

256 260 258 260 259

$ 9,484 $ 8,901 $ 8,508 $ 8,230 $ 8,027

TOTAL EXPENSES PER CAPITA $ 867 $ 823 $ 806 $ 810 $ 782

PERCENTAGE CHANGE IN PER-CAPITA EXPENSES FROM PRIOR YEAR 5.4% 2.0% -0.4% 3.6% 2.3%

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

2012 2013 2014 2015 2016

Consolidated Expenses by Function (in $1,000's)

Parks services

Interest

Sewer services


Environmental health services

Transportation services

Protective services

General government

Expenses by Object

45 | P a g e



Advertising and promotion $ 35 $ 38 $ 34 $ 25 $ 23

Amortization

2,233 2,011 2,025 1,970 1,994

Equipment and facilities 475 470 382 438 463

Insurance

137 134 133 120 106

Interest

256 260 258 260 259

Memberships and licenses 19 19 17 17 19

Miscellaneous

85 76 93 152 110

Office supplies

50 49 44 36 36

Policing costs

669 670 607 708 644

Professional development 188 96 97 100 82

Professional services

1,353 1,334 1,157 944 1,068

Sewer operations

685 570 489 526 508

Supplies and materials

191 210 287 244 148

Telephone and utilities 276 263 241 185 175

Wages and benefits

2,832 2,701 2,644 2,505 2,392

$ 9,484 $ 8,901 $ 8,508 $ 8,230 $ 8,027

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

2012 2013 2014 2015 2016

Consolidated Expenses by Object (In $1,000's)

Wages and benefits

Telephone and utilities

Supplies and materials

Sewer operations

Professional services

Professional development

Policing costs

Office supplies

Miscellaneous

Memberships and licenses

Interest

Insurance

Equipment and facilities

Statement of Reserve Funds and Surplus`

46 | P a g e


(in $1,000's except per capita figures)

2016 2015 2014 2013 2012

Statement of Annual & Accumulated Surplus Accumulated surplus, beginning

$60,620 $59,935 $53,555 $53,405 $53,500

Annual surplus (deficit)

3,854 685 6,380 150 (95)

Accumulated surplus, ending

$64,474 $60,620 $59,935 $53,555 $53,405

Statement of Annual and Accumulated Surplus Statutory reserves

$3,524 $2,754 $2,229 $1,787 $1,649

Operating reserves

1,527 1,293 1,027 574 913

Surplus

(247) 65 459 558 1,418

Equity in tangible capital assets

59,670 56,508 56,220 50,636 49,425

$64,474 $60,620 $59,935 $53,555 $53,405

Net Financial Debt (Detail) Financial assets

$9,113 $8,393 $8,013 $6,857 $7,611

Financial liabilities

8,702 8,843 9,059 8,907 8,841

Net financial debt

411 (450) (1,046) (2,050) (1,230)

Non-financial assets

64,063 61,070 60,981 55,605 54,635

Accumulated surplus, ending

$64,474 $60,620 $59,935 $53,555 $53,405

Statutory Reserve Funds (Detail) Equipment replacement reserve

$749 $649 $865 $690 $655

Sewer improvement reserve

777 646 569 421 615

Land sale reserve

103 136 33 33 3

Building reserve

467 360 249 193 150

Road reserve

1,235 748 377 388 194

Drainage reserve

193 215 136 61 32

$3,524 $2,754 $2,229 $1,786 $1,649

Operating Reserve Funds (Detail) Police stabilization

$180 $217 $318 $121 $86

Election

10 5 - 10 5

Snow removal

10 10 10 10 10

Library

1 1 - - 49

Parks

326 339 411 - -

Fire equipment

10 35 35 25 31

Community amenity

21 29 29 29 53

Fire Training Centre

- 19 19 19 -

Bike path

- - - - -

Building stabilization

25 25 25 25 25

Road improvement

14 14 14 14 14

Water devolution

50 50 50 50 50

Future capital - general

865 509 116 271 590

Planning

15 40 - - -

$1,527 $1,293 $1,027 $574 $913

Statement of Surplus General operating fund - surplus

(1,972) (1,454) (811) (396) 709

Sewer operating fund - surplus

1,725 1,519 1,270 955 709

(247) 65 459 559 1,418

TOTAL RESERVES AND SURPLUSES

$4,804 $4,112 $3,715 $2,919 $3,980

ACCUMULATED SURPLUS (FINANCIAL EQUITY) PER CAPITA

$439 $380 $352 $287 $387

Capital Spending

47 | P a g e



Land & Land Improvements $ 2,315 $ 183 $ 5,720 $ 139 $ -

Buildings 450 - 510 553 651

Vehicle fleet 162 478 184 145 256

Protective services vehicles - - - 169 106

General government equipment 26 53 6 40 32

Protective services equipment 78 44 11 56 29

Transportation services equipment 625 20 38 58 14

Road infrastructure 952 1,489 766 573 360

Drainage infrastructure 305 - - 196 -

Sewer Infrastructure 124 53 - 378 67

$ 5,037 $ 2,320 $ 7,235 $ 2,307 $ 1,515

TOTAL CAPITAL SPENDING PER CAPITAL $ 461 $ 214 $ 686 $ 227 $ 148

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

2012 2013 2014 2015 2016

Capital Spending (In $1,000's)

Sewer Infrastructure

Drainage infrastructure

Road infrastructure

Transportation services equipment

Protective services equipment

General government equipment

Protective services vehicles

Vehicle fleet

Buildings

Land & Land Improvements

Capital Funding by Source

48 | P a g e



General taxation $ - $ - $ 15 $ 11 $ 279

General Non-statutory reserves 37 1,118 11 17 -

Sewer revenues - - - 12 -

Sewer non-statutory reserves - - - - -

Statutory reserves 950 1,111 955 1,319 504

Development cost charges - - - - -

Transfers from developers/other 4,050 91 6,254 - -

Long-term debt - - - 634 651

Short-term borrowing - - - - -

Government grants & Other - - - 314 81

$ 5,037 $ 2,320 $ 7,235 $ 2,307 $ 1,515

PROPORTIONAL BREAKDOWN OF

CAPITAL FUNDING 2016 2015 2014 2013 2012

General taxation 0.0% 0.0% 0.2% 0.5% 18.4%

Sanitary Sewer revenues 0.0% 0.0% 0.0% 0.5% 0.0%

Reserves 19.6% 96.1% 13.4% 57.9% 33.3%

Developers 80.4% 3.9% 86.4% 0.0% 0.0%

Long-term debt 0.0% 0.0% 0.0% 27.5% 43.0%

Short-term borrowing 0.0% 0.0% 0.0% 0.0% 0.0%

Government grants & Other 0.0% 0.0% 0.0% 13.6% 5.3%

100.0% 100.0% 100.0% 100.0% 100.0%

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

2012 2013 2014 2015 2016

Capital Funding by Source (in $1,000's)

Government grants & Other

Short-term borrowing

Long-term debt

Transfers from developers/other

Development cost charges

Statutory reserves

Sewer non-statutory reserves

Sewer revenues

General Non-statutory reserves

General taxation

Long-Term Debt By Function

49 | P a g e



Long-Term Debt by Function

Fire halls

$ 2,984 $ 3,115 $ 3,241 $ 3,363 $ 3,480

Roads

- - - - 84

Drainage

33 65 95 124 151

Buildings

1,186 1,238 1,289 1,337 1,362

$ 4,203 $ 4,418 $ 4,625 $ 4,824 $ 5,077

The long-term debt of the municipality is funded 99.9% from general taxation and 0.1% from parcel tax.

LONG-TERM DEBT PER CAPITA

$ 384 $ 408 $ 438 $ 475 $ 494

-

1,000

2,000

3,000

4,000

5,000

6,000

2012 2013 2014 2015 2016

Long-Term Debt by Function (in $1,000's)

Buildings

Drainage

Roads

Fire halls

Long-Term Debt Capacity

50 | P a g e



Long- Term Debt Per Capital

$ 384 $ 408 $ 438 $ 475 $ 494

Annual Debt Servicing

412 416 414 479 434

.

% of Annual Debt Servicing to Total

Expenses and principal payments

4.34% 4.67% 4.87% 5.82% 5.41%

LEGAL DEBT SERVICING LIMIT

$ 2,172 $ 2,073 $ 2,005 $ 1,871 $ 1,905

REMAINING DEBT SERVICING CAPACITY $ 1,760 $ 1,657 $ 1,591 $ 1,392 $ 1,471

$200

$250

$300

$350

$400

$450

$500

$550

2012 2013 2014 2015 2016

Debt per Capita

$-

$500

$1,000

$1,500

$2,000

$2,500

2012 2013 2014 2015 2016

Legal Debt Servicing Capacity (in $1,000's)

Capacity Available

Capacity Used

Taxable Property Assessments

51 | P a g e


(in $1,000's)

2016 2015 2014 2013 2012

Residential

$ 2,081,956 $ 1,958,907 $ 1,851,924 $ 1,817,841 $ 1,847,254

Utility

1,180 1,491 1,466 2,289 2,245

Major industry

8,327 8,296 8,286 7,856 8,016

Light industry

9,734 5,496 4,981 13,030 10,280

Commercial

17,007 19,416 20,113 11,729 11,934

Recreation and non-profit 4,678 4,300 4,451 4,378 4,271

Farm land

9,261 9,238 9,348 9,196 9,074

$ 2,132,143 $ 2,007,144 $ 1,900,569 $ 1,866,319 $ 1,893,074

% change from prior year 6.23% 5.61% 1.84% -1.41% -1.88% AVERAGE SINGLE FAMILY RESIDENTIAL

ASSESSED VALUES (in $1,000's) 2016 2015 2014 2013 2012

Land

$ 204 $ 195 $ 185 $ 180 $ 187

Improvements

287 275 263 260 260

$ 491 $ 470 $ 448 $ 440 $ 447

% change from prior year 4.47% 4.91% 1.82% -1.57% -2.40%

-

200

400

600

2012 2013 2014 2015 2016

Average Single Family Residential Assessed Value (in $1,000's)

Land Improvements

1,600,000

1,700,000

1,800,000

1,900,000

2,000,000

2,100,000

2,200,000

2012 2013 2014 2015 2016

Assessment Values (in $1,000's)

Farm land

Recreation and non-profit

Commercial

Light industry

Major industry

Utility

Residential

Property Tax Revenue

52 | P a g e



Residential

$ 5,204 $ 4,827 $ 4,642 $ 4,209 $ 4,047

Utility

44 55 54 85 83

Major industry

204 215 219 210 215

Light industry

72 40 93 89 66

Business

102 115 73 65 63

Recreation and non-profit 12 11 11 10 9

Farm land

88 102 105 96 90

$ 5,726 $ 5,365 $ 5,197 $ 4,764 $ 4,573

PROPERTY TAX REVENUE PER CAPITA $ 523 $ 496 $ 493 $ 469 $ 445

TAXES COLLECTED IN THE YEAR

$ 5,418 $ 5,059 $ 4,964 $ 4,476 $ 4,249

PERCENTAGE OF TAXES COLLECTED IN THE YEAR 94.62% 94.30% 95.52% 93.95% 92.91%

RATIO OF TAXES - RESIDENTIAL TO TOTAL PROPERTY (GENERAL TAXES ONLY) 90.88% 89.97% 89.32% 88.35% 88.50%

TAXES LEVIED FOR OTHER AGENCIES 2016 2015 2014 2013 2012

Provincial School Tax

$ 4,776 $ 4,659 $ 4,606 $ 4,429 $ 4,343

Regional District of North Okanagan 2,164 2,081 2,021 2,397 2,335

Regional Hospital Districts 618 602 581 549 477

Okanagan Regional Library 429 413 408 391 381

Other

125 128 127 123 122

$ 8,112 $ 7,883 $ 7,743 $ 7,889 $ 7,658

-

1,000

2,000

3,000

4,000

5,000

6,000

2012 2013 2014 2015 2016

Revenue by Assessment Class (In $1,000's)

Cl 9

Cl 8

Cl 6

Cl 5

Cl 4

Cl 2

Cl 1 -

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2012 2013 2014 2015 2016

Total Taxes Levied (In $1,000's)

Other

ORL

Hospital

RDNO

Province

Municipal

Principal Corporate Tax Payers

53 | P a g e


(in $1,000's)

Rank Property Owner Category

General Taxes Levied 2015

1 Tolko Industries Ltd. Industrial $ 203 1

2 Coldstream Ranch (2002) Ltd. Farm & Industrial 47 2

3 Timber Investments Residential 35 19

4 O-I Canada Corp Commercial 32 3

5 Canadian National Railway Ltd. Utility 32 4

6 West Kootenay Power & Light Co. Utility 26 5

7 Scenic Valley Trailer Park Ltd. Residential 18 7

8 Coldstream Court Resort Ltd. Commercial 17 6

9 Coldstream Meadows Property Management Ltd. Residential 16 8

10 Trintec Enterprises Ltd. Commercial 9 9

11 Podollan's Construction Ltd. Residential 9 10

12 673291 Alberta Ltd. Residential 8 11

13 Coldstream Lumber Remanufacturing Ltd. Industrial 8 12

14 MNB Holdings Ltd. Residential 6 14

15 INC. NO. BC0850137 Industrial 6 N/A

16 David Regehr Holdings Ltd. Residential 6 16

17 Kalview Estates Ltd. Residential 5 20

18 0850137 BC Ltd. Industrial 6 17

19 1691353 ALBERTA LTD Residential 5 N/A

20 1718189 ALBERTA LTD Residential 5 N/A

Total General Tax Revenue - Top Twenty $ 499

Total General Tax Revenue - District Wide $ 5,726

Proportion of Taxes Paid by Top Twenty 8.7%

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

2012 2013 2014 2015 2016

Taxes Paid - Principal Corporate vs Other Taxpayers (In $1,000's)

All Other Taxpayers

Top Twenty CorporateTaxpayers

Permissive Tax Exemptions

54 | P a g e


(Foregone Tax Revenues - Coldstream Portion Only)

LEGAL ROLL # NAME Class Assessment Taxes

Other Municipalities - parks, etc. District Lot 773 1763.500 City of Vernon - Kal beach foreshore 6I 26,900 $ 161

City of Vernon - Kal beach foreshore 8L 1,676,000 4,190

Plan B4067, Plan 455 1765.000 City of Vernon -Vernon Creek Control Gate - Westkal Rd.

6L 30,900 185

Lot C,Plan B4047 1766.000 City of Vernon - Kal Lake Pumphouse 2L&I 587,700 21,827

Lot A, Plan B4047 1767.000 City of Vernon - Water Reservoir 2L&I 986,000 36,621

Lot 1, Plan 6417 1768.000 City of Vernon - Kal Lake Pumphouse 2L&I 1,334,000 49,545

Non-profit Organizations Plan B5453; N/E 1/4 1228.000 Lavington Community Association - old hall

site - vacant land 8L 158,000 395

Lot 5, Plan 10026 954.000 Canadian Mental Health Association 1L&I 592,000 1,480

Lot 6, Plan KAP9714 Blk 2 37.000 Kindale Developmental Association lL&I 736,000 1,840

Lot 7, Plan 2122 656.000 Kindale Developmental Association lL&I 782,000 1,955

Lot 55, Plan KAP76946 179.358 Kindale Developmental Association lL&I 512,000 1,280

Lot 1, Plan 9735 728.000 Vernon & District Riding Club 8L 539,000 1,347

Lot 1,Plan KAP72589 448.000 Mackie Lake House Foundation 8L 3,806,000 9,514

1I 441,000 1,102

Lot 1, Plan 16554 568.000 Bishop Wild Bird Foundation 1L&I 2,694,000 6,734

Places of Worship Lot 1, Plan EPP18765, DL 57 831.015 Real Life Ministries Society 8L&I 925,000 2,312

L.1&2;Plan 3026 681.000 Ukrainian Catholic Eparchy 8L&I 266,800 667

682.000 Ukrainian Catholic Eparchy 6L 214,000 1,284

PCL.A, Plan B6907 1227.000 Lavington Fellowship Baptist Church 8L&I 787,500 1,969

Lot 1, Plan 40254 680.050

Roman Catholic Bishop of Kamloops - Our Lady of the Valley

8L&I 1,889,900 4,724

$ 149,134

Building Permits and Business Licenses

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Building Permit Construction Values (in $1,000's) 2016 2015 2014 2013 2012

Residential $ 18,325 $ 27,265 $ 38,353 $ 17,844 $ 16,695

Other 4,146 3,890 4,709 4,392 3,718

$ 22,471 $ 31,155 $ 43,062 $ 22,236 $ 20,413

Building Permit Fees (in $1,000's) $ 394 $ 292 $ 454 $ 278 $ 250

Number of Building Permits Issued 117 121 137 122 105

Business License Fees (in $1,000's) $ 41 $ 37 $ 39 $ 39 $ 40

Number of Licensed Businesses 266 248 243 249 256

Number of Land Use Applications * 18 11 15 25 23

* Includes applications for rezoning, OCP Amendments, Development Permit, ALR and Subdivision

Source: District of Coldstream Development Services and Building divisions

0

10,000

20,000

30,000

40,000

50,000

2012 2013 2014 2015 2016

Construction Values (In $1,000's)

Other

Residential

0

50

100

150

2012 2013 2014 2015 2016

Building Permits Issued

Number of Employees

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Number of Employees (Full Time Equivalents)* 2016 2015 2014 2013 2012

Administration

5.0 5.0 5.0 5.0 5.0

Finance

4.8 4.8 4.8 4.4 4.8

Building Inspection & Bylaw Enforcement 2.0 2.0 2.0 2.0 2.0


2.0 2.0 2.0 1.5 1.5

Engineering

2.0 2.4 2.4 1.9 1.9

Police (civilian staff) & Protective Services 2.3 2.0 2.0 2.0 2.0

Operations:

Sanitary Sewer

1.0 1.0 1.0 1.0 1.1

Public Works

9.0 9.0 9.0 10.4 10.2

Parks

3.6 3.2 3.2 - -

Water **

6.0 6.0 6.0 6.1 6.9

37.7 37.4 37.4 34.3 35.4

* Full-time equivalent is based on the total number of hours worked as a function of standard full-time hours

** Less: Number of employees for which full employment costs are recovered by the Regional

District of North Okanagan for Water.

(6.0)

(6.0)

(6.0)

(6.1)

(6.9)

Net number of Employees (relating to employment

costs recorded by the District of Coldstream) 31.7 31.4 31.4 28.2 28.5

Gross FTE Positions per 1,000 of population 3.45 3.46 3.54 3.37 3.45

Net FTE positions per 1,000 of population 2.90 2.90 2.98 2.77 2.77

252627282930313233

2012 2013 2014 2015 2016

Net Number of Employees (FTE's)

2.4

2.6

2.8

3.0

3.2

2012 2013 2014 2015 2016

Net FTE Positions per 1,000 Population

Population Demographics

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2016 2015 2014 2013 2012

Annual Estimated Population (Source: BC Statistics) 10,938 10,821 10,551 10,163 10,271

Population Growth Rate 1.08% 2.56% 3.82% -1.05% -0.47%

Statistics Canada Census Data (last three census years)

2016 2011 2006

Census Population

10,648 10,315 9,470

Population by Age Group 0 to 4

460 395 375

5 to 14

1,235 1,335 1,325

15 to 19

770 855 765

20 to 24

535 495 445

25 to 44

1,930 1,935 1,945

45 to 54

1,745 1,945 1,830

55 to 64

1,945 1,730 1,385

65 to 74

1,255 995 835

75 +

773 630 565

10,648 10,315 9,470

-

2,000

4,000

6,000

8,000

10,000

12,000

2006 2011 2016

Census Data - Population by Age Group

75 +

65 to 74

55 to 64

45 to 54

25 to 44

20 to 24

15 to 19

5 to 14

0 to 4

Statement of Financial Information

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SCHEDULE OF DEBTS

2016 2015

Purpose Date of

Issue Term in

Years Maturity

Date Interest Rate Original Debt Balance

Outstanding Balance Outstanding

Debenture Debt

Drainage 1997 20 2017 5.85% 434,100 $ 33,174.49 $ 64,769.33

Buildings 2007 25 2032 4.52% 4,000,000 2,983,545.27 3,114,993.38

Capital 2011 20 2031 3.25% 50,381 41,216.80 43,196.13

Buildings 2012 20 2032 3.40% 1,335,320 1,144,898.44 1,195,340.02

$ 4,202,835.00 $ 4,418,298.86

Other Debt

Capital 2016 5 2021 1.40% 250,000.00 250,000.00 -

$ 4,452,835.00 $ 4,418,298.86

SCHEDULE OF GUARANTEE AND INDEMNITY AGREEMENTS

Information on all guarantees and indemnities for the District of Coldstream is included in Note 11 to the

Financial Statements.


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SCHEDULE OF REMUNERATION AND EXPENSES

Elected Officials

Name Position Remuneration Expenses Total

Jim Garlick Mayor

$ 30,755.40 $ 2,338.42 $ 33,093.82

Gyula Kiss Councillor

15,144.20 - 15,144.20

Peter McClean Councillor

14,354.12 1,650.44 16,004.56

Douglas Dirk Councillor

12,905.64 - 12,905.64

Richard Enns Councillor

12,773.96 725.00 13,498.96

Glen Taylor Councillor

12,510.60 2,058.27 14,568.87

Patrick Cochrane Councillor

11,720.52 - 11,720.52

$ 110,164.44 $ 6,772.13 $ 116,936.57

Employees earning more than $75,000 per year

Name Position Remuneration Expenses Total

Trevor Seibel Chief Administrative Officer $ 141,371.42 $ 7,377.85 $ 148,749.27

Patricia Higgins Director of Financial Administration 109,011.02 3,132.03 112,143.05

Michael Reiley Director of Development Services 109,010.87 1,677.39 110,688.26

Michael Baker Director of Infrastructure Services 103,315.34 2,812.59 106,127.93

Bob Bibby Building Official

101,268.01 2,431.50 103,699.51

Keri-Ann Austin Corporate Officer

99,475.54 2,402.30 101,877.84

Michael Pethick Operations Superintendent 96,800.60 1,404.21 98,204.81

Dave Acton Utilities Foreman

90,954.82 1,776.27 92,731.09

Gord Mckay Roads Foreman

86,569.09 557.87 87,126.96

Neil Blundell Utilities Operator I 83,358.76 305.00 83,663.76

Brent Comeau Utilities Operator II 79,440.36 1,912.27 81,352.63

James Scherck Utilities Operator I 76,394.72 319.00 76,713.72

Jan Ullrich Mechanic

75,608.13 250.00 75,858.13

Irma Breitkreutz Deputy Municipal Clerk 75,184.70 1,930.21 77,114.91

1,327,763.38 28,288.49 1,356,051.87

Employees earning less than $75,000 per year

Consolidated total of other employees with remuneration less than $75,000

1,669,088.83 20,608.54 1,689,697.37

Total Remuneration

$ 3,107,016.65 $ 55,669.16 $ 3,162,685.81

There were no Council disqualifications in 2016 as per Section 110 of the Community Charter.

STATEMENT OF SEVERANCE AGREEMENTS

There was one severance agreement under which payment commenced between the District of Coldstream and its exempt

employee during the fiscal year 2016. Total Value - $15,000.00 – represents 4.3 months of compensation.


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SCHEDULE OF SUPPLIERS OF GOODS AND SERVICES (GREATER THAN $25,000)

Vendor Name 2016

2015 Comparative Amount

1 & 2 ELECTRIC LTD

$ 141,932.39 $ 105,947.93

A & D ASPHALT SOLUTIONS

123,004.85 172,484.40

AARDVARK PAVEMENT MARKING SERVICES 53,464.97 55,064.98

ALLEN DAVID

31,539.30 -

ALL SAFE TRAFFIC CONTROL INC - 30,739.54

ANDREW SHERET LTD

114,223.00 77,670.25

ARTERRA CONSTRUCTION LTD

- 86,675.78

ASPHALT VALLEY PAVING SERVICES 27,028.05 -

ASSOCIATED ENVIRONMENTAL CONSULTANTS INC 28,695.03 -

BANK OF MONTREAL/MASTERCARD 48,081.82 57,140.93

BANNISTER CHEVROLET INC

- 35,405.95

BC ASSESSMENT AUTHORITY

124,378.74 128,160.98

BC COMMISSIONAIRES

48,730.66 45,616.48

BC HYDRO & POWER AUTHORITY 167,079.32 158,000.36

BC TRANSIT

129,250.33 100,844.32

BLACK PRESS GROUP LTD

31,560.66 -

C.U.P.E.

36,953.56 32,689.19

CAPRI INSURANCE

58,564.50 58,413.00

CO-OP ARMSTRONG REGIONAL COOPERATIVE 107,037.11 130,857.61

CORIX WATER PRODUCTS

- 29,731.31

D W MCMULLEN & ASSOCIATES LTD. 34,194.52 28,204.88

DEAN TOOP EXCAVATING

112,768.52 145,870.12

EMPS/ELECTRIC MOTOR & PUMP SERVICE LTD. 31,003.92 29,646.99

FORTIS BC

- 25,388.36

FP TELESET

- 25,200.00

FRED SURRIDGE LTD.

67,256.22 35,666.68

GCR RAIL CROSSINGS

29,794.05 27,211.30

GILBERT PARTS DEPOT

31,968.76 33,323.23

GUILLEVIN INTERNATIONAL INC

125,357.61 58,309.02

HUB FIRE ENGINES & EQUIPMENT LTD - 466,924.64

INLAND KENWORTH VERNON

156,543.50 -

INSURANCE CORPORATION OF BC 33,407.00 32,674.00

LAVINGTON PELLET LIMITED PARTNERSHIP 46,847.46 -

LYNN'S EXECUTIVE CLEANING SERVICE INC 35,644.03 30,618.80


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Vendor Name 2016

2015 Comparative Amount

MINISTER OF FINANCE

56,888.44 55,691.26

MINISTRY OF PROVINCIAL REVENUE 1,982,837.22 1,957,332.90

MUNICIPAL INSURANCE ASSOC OF BC 69,251.56 67,736.00

MUNICIPAL PENSION PLAN

466,865.85 456,820.63

MURDY & MCALLISTER

38,508.75 32,999.94

NORTH OKANAGAN (SHUSWAP) REG HOSPITAL 618,383.89 599,721.00

NORTH OKANAGAN REGIONAL DISTRICT 5,319,480.42 4,627,617.78

NORTHERN COMPUTER

49,774.25 79,457.15

OKANAGAN AGGREGATES LTD

502,932.37 -

OKANAGAN REGIONAL LIBRARY

429,443.72 412,462.44

PACIFIC BLUE CROSS

198,699.54 188,719.88

PETER'S BROS. CONSTRUCTION LTD. 427,925.34 -

POSTILL NIXON EARTHWORKS

128,803.48 451,205.37

POSTILL, R.E.& SONS LTD

132,486.60 60,100.52

RECEIVER GENERAL FOR CANADA 1,517,562.24 1,284,973.98

REMAX VERNON TRUST ACCOUNT 50,000.00 -

ROCKY MOUNTAIN PHOENIX

29,874.46 -

ROYALE LANDSCAPING

252,387.64 195,007.96

SEAL TEC INDUSTRIES LTD

52,570.85 52,134.68

SPECIAL T CLEANING

132,227.25 136,280.38

SUPER SAVE DISPOSAL INC

30,938.11 27,809.17

TELUS COMMUNICATIONS (B.C.) INC. 31,194.86 31,983.31

TEMPLE CONSULTING GROUP LTD. 32,544.96 -

THE HIGHLANDS AT KALAMALKA LAKE - 34,505.11

TISHENKO ALEXANDER

166,497.85 -

URBAN SYSTEMS LTD

- 55,570.02

VERNON JUBILEE HOSPITAL FOUNDATION 55,600.00 -

VERNON, CITY OF

994,446.04 786,639.56

WORKSAFE BC

59,260.19 54,952.81

Payments to Vendors over $25,000 15,805,711.76 13,894,202.88

Payments to Vendors under $25,000 1,458,082.10 1,264,536.16

TOTAL PAYMENTS MADE

$ 17,263,793.86 $ 15,158,739.04

NOTE: 2015 Comparative Amounts are only those amounts appearing in the 2015

vendor payment report over $25,000.

Vendors showing 2015 amounts as zero may have received payments from the

District in 2015 but were below the threshold of $25,000.


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STATEMENT OF FINANCIAL INFORMATION APPROVAL

The undersigned, as authorized by the Financial Information Regulation, Schedule 1, Subsection 9(2), approves all the

statements and schedules included in this Statement of Financial Information, produced under the Financial Information Act.

May 9, 2016

Patricia (Pat) Higgins

Director of Financial Administration

Jim Garlick

Mayor, District of Coldstream

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Photos for this report have been provided primarily by Debbie Gibson

For additional copies of the 2016 Annual Report contact:

Director of Financial Administration District of Coldstream

9901 Kalamalka Road, Coldstream, BC V1B 1L6

Tel 250-545-5304| Fax 250-545-4733 www.coldstream.ca

http://www.coldstream.ca/

Documents

Annual Report 2016 - civicinfo.bc.ca · pursue the strategic priorities and directives of Municipal Council. The Official Community Plan (OCP) update and the Parks Master Plan were