2012 Financial Statements Regular Meeting of Council May 21 st, 2013

The Financial Statements have been prepared in accordance with GAAP established by PSAB The statements also comply with relevant requirements of the Community Charter The audit was conducted by BDO Canada LLP and has resulted in an unqualified audit opinion – Free from material misstatement The statements will be posted to the City’s website and a copy can be obtained at City Hall 2012 Financial Statements Basis of Presentation

2012 Financial Statements Private vs. Public Sector Statements Private SectorPublic Sector Balance SheetStatement of Financial Position Income StatementStatement of Operations Statement of Changes in Net Financial Assets Statement of Cash Flow Notes

Statement of Financial Position – Assets – what the City owns or controls Financial Assets (cash or to be converted to cash) Non-financial Assets (physical assets used to deliver services) – Liabilities – what the City owes – Accumulated Surplus – what remains after the assets have been used to meet the liabilities City’s resources available for provision of services 2012 Financial Statements Statement of Financial Position

Key Points Net Financial Assets total $7.8M – Cash and Investments - $22.2 million – Debt - $7.4M Net Book Value of Tangible Capital Assets of $170.8M Accumulated Surplus of $178.9M Comparison with Prior Year Increase in Cash and Portfolio Investments Property Tax and Utilities Receivable decrease Increase in Development Installments Receivable Accounts payable and Accrued Liabilities decrease Reduction in outstanding Borrowing Investment in Tangible Capital Assets

6 Annual revenues Gain on Disposal of TCA Annual expenses Expenditures Amortization Annual surplus = revenues - expenses Indicates whether the revenues raised in a year were sufficient to cover the year’s expenses Although the Gain on the Sale of Land is Revenue, the use of the proceeds to pay down of Borrowing is not an Expense 2012 Financial Statements Statement of Operations

Key Points Annual Surplus of $13.6M on revenues of $41.6M and expenses of $27.9M – Primarily due to Gain on Disposal of TCA, mainly the South Bonson Land Sale Annual amortization $4.6M ( $3.4M) included in expenses Comparison with Prior Year Taxes and utility fees due to rate increases and growth Reduced investment yields Lower grant revenues Contributions by developers/others Protective Services Curbside Organics New Library 2012 Financial Statements Statement of Operations

2012 Financial Statements Operating Results – Compared to Budget

Calculated on expenditure basis (same as the bylaw) Annual Surplus of $206,765 ( $485,053) Notable Variances from Budget – Property tax reassessments – Traffic Fine Revenue and Small Community Grants – Development activity – New Library operations – Building and property maintenance – Freshet costs – Subsidy for Solid Waste for curbside organics – Various under spends in Joint Parks & Leisure, Salaries & Benefits, RCMP Housing and Support and Road Maintenance

2012 Financial Statements Summary Unqualified Audit Report Net Financial Assets of $7.8M. Net Book Value of TCA of $170.8M (Replacement costs estimated at $319.5M to $341.9M) Accounting Surplus of $13.6M on Revenues of $41.6M Surplus compared to balanced budget of $206,765

2012 Financial Statements Next Steps Part of “Statutory” Annual Report to be received by Council prior to June 30 th – Opportunity for public input Part of SOFI to be received by Council and available for the public prior to June 30 th