Annual Report 2013 - North Cowichan€¦ · annual report. 2013. for the year ended december 31,...

Annual Report 2013FOR THE YEAR ENDED DECEMBER 31, 2013NORTH COWICHAN, BRITISH COLUMBIA, CANADA

This page has been intentionally left blank.

The Corporation of the District of North Cowichan2013 ANNUAL REPORT

North Cowichan, British Columbia

T 250.746.3100 | F 250.746.3133

[email protected] | www.northcowichan.ca

The Annual Report is produced by the Finance Department of the Municipality of North Cowichan in cooperation with all civic departments.

iv | Municipality of North Cowichan Annual Report 2013 | v

all residents within the Cowichan Valley Regional District thus eliminating the two-tier fee system entirely.

Agriculture is not only an important part of our heritage, it is also an important component of a healthy economy and vital to our survival. Preserving and supporting agriculture continues to be a strategic priority. The Agricultural Advisory Committee (AAC) has developed a plan to improve agricultural opportunities in North Cowichan. One of the Committee’s first suggestions, which has been endorsed by Council, was to create a reserve fund for agriculture. Additionally, the AAC has identified the Bonsall Creek Watershed Planning Initiative as a first step in helping farmers deal with both irrigation and storm water issues. This initiative is 50% funded by a grant from the Investment Agriculture Foundation of BC, with support of the Federal and Provincial Governments. The findings will help guide similar water management issues in other watersheds in North Cowichan. We are confident that by sticking to the plan, setting aside sufficient financial resources, and forming collaborative partnerships, we will reach our goals of protecting our agricultural land base, strengthening the economic vitality of farming, and promoting the importance of local food.

Looking forward in 2014, we hope to resolve some high profile issues. The future of Echo Heights, a road to Stoney Hill, planning for a new police headquarters, and the long-awaited skate park in Chemainus are a few of the challenges ahead.

We continue to deal with tough issues and have sought public input more extensively than ever before. We recognize that your views are vital in helping Council make good decisions that reflect the best interests of the community. We need to know what you think, and you

need to be provided with opportunities to tell us. As part of Council’s desire to improve the way we communicate and interact with our citizens, we dedicated time to developing a new Council Communications Plan. We hope that, over the next year, we can make significant progress implementing the communication approaches outlined in this plan. With more effective issue management will come increased public awareness, education and engagement. I trust you will use every opportunity to help shape our community.

I would also encourage you to sign up for ‘Notifications’ on our website www.northcowichan.ca as this will enable you to stay engaged in current issues. If you do not have time to share your views at a Council or committee meeting, please take a moment to contact me by email at [email protected], or by phone at 250.746.3115.

As a final note for 2013, I would like to thank the many citizens who have volunteered their time and energy to help keep this community safe, deliver the services that support our enviable quality of life, promote a healthy sustainable economy and preserve the natural environment that supports every aspect of life.

On behalf of Council, I am pleased to introduce this year’s Annual Municipal Report. As you will see in the following pages, 2013 was an eventful year in North Cowichan. We were able to move forward—and in some cases complete—some significant infrastructure projects while maintaining focus on our forward-looking strategic priorities.

In order to properly care for the needs of residents and businesses, now and into the future, we need to be smart about how we grow our communities. To this end, the Municipality has been actively working with the communities of Crofton and the University Village area to plan the revitalization, beautification and densification of these urban centres. Creating local area plans for these growth centres will help us stay true to the policies and guiding principles of sustainable growth as outlined in our Official Community Plan. Not only do we need to address issues of land use, infrastructure, and transportation, but we also need to ensure these plans promote safe and healthy communities, outline beneficial services, and propose needed community amenities, all of which support a healthy economy. Your continued support and input during these planning processes will be key to creating the community that you envision.

Increased densification in urban areas will create local jobs and help reduce our vehicle emissions that account for 79% of greenhouse gas emissions in North Cowichan. Along with the local area plans being developed in Crofton and the University Village area, the Municipality also adopted the Revitalization Tax Exemption Bylaw. The Bylaw is designed to encourage mixed use and commercial developments in our designated urban cores, and industrial developments in our industrial areas. We are already seeing some

promising results in our urban centres with the first new mixed use building being constructed on the corner of Garden and James Streets in the University Village Area, and another building is being constructed in Crofton. We anticipate that by the end of 2014, more benefits will be realized from those taking advantage of this new revitalization initiative designed to encourage modern development in the urban cores and bring new jobs to the Cowichan Valley.

Our Climate Action and Energy Plan (CAEP), which was selected for the top award by the Community Energy Association at the Union of BC Municipalities Convention in 2013, is now in the implementation phase. In a mutually beneficial partnership with BC Hydro, we have begun the replacement of inefficient heating, cooling and pumping systems, thereby reducing energy consumption, in our South End Water System and more is planned for our major facilities (e.g. Fuller Lake Arena). These actions will save us substantial amounts of money on our Municipal energy bills and reduce our carbon footprint. We are also working with the community to reduce home energy use with the Household Challenge that will start this September. Please check out our website for more information on this and other events associated with the CAEP.

North Cowichan has a strong legacy of providing valuable public services while maintaining competitive tax rates for residents and businesses wanting to locate in our Municipality. In 2013 we welcomed five new funding partners into the Cowichan Aquatic Centre—Regional District Electoral Areas A, B, C, D and E. We are pleased that these residents can now enjoy, at our normal rates, the great recreational programs and aquatic activities offered by our exceptional staff at the Aquatic Centre. It is my hope that we will eventually find a way to include

Jon Lefebure, Mayor

MAYOR’S MESSAGE

Annual Report 2013 | 1

TABLE OF CONTENTS

Mayor’s Message iv-v2013 Officials 2Organizational Structure 3Elected Officials 4Council Appointments 5Historical Reeves & Mayors 6Map of North Cowichan 7Objectives and Measures 8-92013 Accomplishments 10-15

Report from the Director of Finance 16 Financial Reporting Award 17

CONSOLIDATED FINANCIAL STATEMENTS 19

Statement of Responsibility 20Independent Auditor’s Report 21Consolidated Statement of Financial Position 22Consolidated Statement of Operations 23Consolidated Statement of Changes in Net Financial Assets 24Consolidated Statement of Cash Flow 25Notes to the Consolidated Financial Statements 26-41Schedules to the Consolidated Financial Statements 42-53Duncan-North Cowichan Joint Utilities Board 54-61

STATISTICAL INFORMATION 63

Five-year Statistical Review 64-73Demographic Statistics 75Top 10 Principal Taxpayers 76

OTHER INFORMATION 77

Permissive Tax Exemptions 78-81Chemainus Off-street Parking 82Development Cost Charges 83Declaration of Disqualification from Office 84

FINANCIAL REPORT

ANNUAL REPORT

2 | Municipality of North Cowichan Annual Report 2013 | 3

2013 OFFICIALS

MAYORJon Lefebure

COUNCILLORSRuth HartmannJohn Koury Barb LinesKate MarshAl SiebringJennifer Woike

AUDITORSHayes Stewart Little & Co.

BANKERSRoyal Bank of Canada

SOLICITORSYoung AndersonTaylor Granitto

ORGANIZATIONAL STRUCTURE

Citizens of North Cowichan

Mayor and Municipal Council

Chief Administrative OfficerDave Devana, CA

Director of Human ResourcesGaya Laflamme

Manager of Information ServicesJohn Gunn

Municipal ForesterDarrell Frank, RPF

Inspector, RCMPInspector Ray Carfantan, OIC

Director of Administration / Deputy CAOMark O Ruttan, BA, MPA, CMC

Director of FinanceMark Frame, BBA, CGA

Director of Engineering and OperationsJohn Mackay, P.Eng

Director of Development ServicesScott Mack, M.Arch, B.Sc. (Plan) MCIP

Director of Parks and RecreationErnie Mansueti


ELECTED OFFICIALS2011-2014 MAYOR & MUNICIPAL COUNCILThe Municipal Council is North Cowichan’s governing body. North Cowichan’s Municipal Council is comprised of a Mayor and six Councillors. Each member of the Municipal Council was elected in November 2011 for a three-year term. Under the Community Charter, Council’s role is to provide good government; services its citizens’ need and want; stewardship of its public assets; and a positive economic, social and environmental climate.

Council usually holds two regular council meetings each month, which are open to the public. Meeting agendas and schedules are available from the Municipal Hall or on the website at www.northcowichan.ca.

JON LEFEBUREMAYOR

JENNIFER WOIKECOUNCILLOR

AL SIEBRINGCOUNCILLOR

KATE MARSHCOUNCILLOR

RUTH HARTMANNCOUNCILLOR

JOHN KOURYCOUNCILLOR

BARB LINESCOUNCILLOR

COUNCIL APPOINTMENTS COMMITTEES, COMMISSIONS AND BOARDS

INTERNAL COMMITTEES, BOARDS AND PANELSAgricultural Advisory Committee Forestry Advisory Committee

Board of Variance Joint Utilities Board

Chemainus Advisory Committee Parcel Tax Roll Review Panel

Climate Change Advisory Committee Parks and Recreation Advisory Committee

Community Planning Advisory Committee Protective Services Committee

Economic Development Advisory Committee Sports Wall of Fame Nomination Committee

EXTERNAL APPOINTMENTSBC Forest Discovery Centre

Chemainus Festival of Murals Society

Chemainus and District Chamber of Commerce

City of Duncan Tourism Advisory Committee

Cowichan Communities Health Network

Cowichan Region Community Policing Advisory Committee

Cowichan Success-By-Six

Cowichan Valley Regional District Board

Cowichan Valley Regional District Heath Services Advisory Committee

Cowichan Valley Regional District Safety Advisory Committee

Cowichan Valley Regional District Sports Tourism Advisory Committee

Cowichan Valley Welcoming Communities Advisory Committee

Crofton Community Centre Society

Duncan - Cowichan Chamber of Commerce

Islands Agriculture Show Steering Committee

Island Savings Centre Commission

Maple Bay Community Association

Mayor's Advisory Committee on Disabilities (City of Duncan)

Regional Health Advisory Committee

Social Planning Cowichan Board

Somenos Management Committee

Vancouver Island Regional Library Board


HISTORICAL REEVES & MAYORSSINCE INCORPORATION IN 1873

T.J. Skinner 1873A.H. Green 1874J. Morley 1875-1877W. Drinkwater 1878-1879, 1888-1893W.H. Lomas 1880-1882W.C. Duncan 1883J.N. Evans 1884, 1886-1887, 1900-1903, 1915-1917, 1923-1928H.O. Wellburn 1885S.H. Davie 1894-1895, 1904-1906T.A. Wood 1896-1899H. Bonsall 1907J.Mc.L. Champbell 1908A.C. Aitken 1909-1911, 1922-1923P.W. Anketell Jones 1912-1913J.I. Mutter 1914, 1918-1919A.A.D. Herd 1920E.W. Paitson 1921-1922G.A. Tisdall 1929-1937D.D. Chapman 1938-1949A.E. Beasley 1950-1953C.A.P. Murison 1954-1959D.C. Morton 1960-1969G.C. Smith 1970-1977G.W. Whittaker 1978-1979G.P. Bruce 1980-1987H.R. Hollett 1988-1996, 2000-2002A. Murray 1997-1999J. Lefebure 2002-2008, 2011-CurrentT. Walker 2008-2011

MAP OF NORTH COWICHANLocated on the east coast of Vancouver Island in the Cowichan Valley Regional District, North Cowichan is centrally located between the cities of Victoria to the south, and Nanaimo to the north. Vancouver is located to the east, separated by the Salish Sea. Spanning 195 square kilometers, North Cowichan is the largest District Municipality by area on Vancouver Island.

Salt Spring Island

North Cowichan

Ladysmith

Victoria

Duncan

Mill Bay

To Nanaimo

Vancouver Island

Vancouver

Surrey

CANADA

USA


Prepared in compliance with sections 98(2)(d) and (f) of the Community Charter, this statement sets out Council’s broad objectives through 2015, corresponding performance measures, and a progress for previous years. Council’s primary objectives are to foster North Cowichan’s social, economic, and environmental well-being in order to be the best place on Vancouver Island to live, work and play. It is anticipated that the future format and content of the report will integrate progress monitoring and reporting on the key objectives and measures contained in North Cowichan’s Official Community Plan.

OBJECTIVE 1 FOSTER SOCIAL WELL-BEING TO CREATE HEALTHY, SAFE, INCLUSIVE AND VIBRANT COMMUNITIES

Performance Measure 2012 Progress 2013 Progress

1 Crime rates 1 7.48% 6.92%

2 Vehicle accidents 2 268 279

3 Boil water advisories 3 0 0

4 Fire calls 4 757 809

5 Trails built 5 unavailable 10.28 km

6 Parks added 6 unavailable unavailable

OBJECTIVE 2 FOSTER ECONOMIC WELL-BEING TO ENCOURAGE A FLOURISHING AND DIVERSE LOCAL ECONOMY


1 Housing starts 7 96 102

2 Non-residential building permits 8 11 12

3 New business starts 9 176 138

4 Unemployment rate 10 6.9% 7.5%

6 Assessment base 11 $4.47 billion $4.41 billion

7 General residential tax rate 12 3.8203 4.0927

8 Avg. general municipal home taxes $1,281 13 $1,332

OBJECTIVE 3 FOSTER ENVIRONMENTAL WELL-BEING TO PROTECT THE ENVIRONMENT & CREATE QUALITY GREEN SPACES


1 Net carbon emissions 14 748 tonnes CO2e 986 tonnes CO2e

2 Trees planted in forest reserve 54,057 46,563

OBJECTIVES AND MEASURES

NOTES OBJECTIVES AND MEASURES 1 The crime rate is a reflection of community safety and security, as well as an indicator of other social and economic problems. The crime rate includes actual confirmed crimes against persons, crimes against property, and other Criminal Code offences per 100 population.

2 The number of vehicle accidents is a measure of traffic safety. This measures includes fatalities and damages over $1,000.

3 The number of boil water advisories is a measure of the health and safety of municipal water systems. The number of advisories has been reduced due to the development of the new Chemainus wells.

4 The number of response calls to the North Cowichan Fire Department is an indicator of building safety.

5 The kilometres of trails built includes formal trails built by or for the Municipality.

6 The acres of parks added includes municipal and regional parks added during the previous year.

7 Housing starts includes news single and multi-family home starts. This figure is considered a good leading indicator for home sales and a major indicator of economic activity and consumer confidence.

8 The number of non-residential building permits issued is an important measure of a jurisdiction’s economic activity and attractiveness to investors.

9 The number of new business formations is an important measure of economic and entrepreneurial activity.

10 The unemployment rate is estimated by BC Stats for North Cowichan, Duncan and Electoral Areas D & E. It comprises the number of unemployed persons expressed as a percentage of the labour force.

11 The total net taxable assessment base for North Cowichan provides an estimate of the market value of all land and improvements assessed for general municipal purposes, according to BC Assessment’s revised roll.

12 Competitive property tax rates are an important measure of economic well-being. This figure represents the general portion of the residential property tax rate per $1,000 of assessed value.

13 Increase includes $275 tax shift from Class 4 - Major Industry to Class 1 - Residential.

14 Net carbon emissions are the amount of net greenhouse gas emissions per equivalent tonne of carbon dioxide emitted by North Cowichan’s municipal operations. This figure is reported annually in the Climate Action Revenue Incentive Program report to the Province of BC and includes offsets from introducing household organic waste composting.


2013 ACCOMPLISHMENTS

CHEMAINUS RIVER BRIDGE

FLOOD PROTECTION WORKS

During 2013, phase 2 of diking along Beverly Street between Lakes Road and the Trans-Canada Highway was completed. Two-thirds funding was provided by the Federal and Provincial Governments, and the Municipality of North Cowichan and neighbouring jurisdictions contributed one-third funding. Once the final phase of diking is completed, the developed areas of University Village, the City of Duncan, and Cowichan Tribes will be protected from a 1 in 200 year flood. The dike also includes a 2.5 kilometre trail along the top, offering an additional recreational opportunity for the public. To date this has been very popular with walkers and joggers enjoying the views over the Somenos Marsh. Along with these flood protection works, Beverly Street was rebuilt and now includes bike lanes and improved pedestrian crossings.

REPORT ON MUNICIPAL SERVICES AND OPERATIONS

CHEMAINUS RIVER BRIDGE REPLACEMENT

Replacing the existing timber bridge built in 1952, a new, low-maintenance steel plate girder bridge over the Chemainus River was opened to traffic in December 2013. The Federal Gas Tax Fund fully funded the $5 million project. The new bridge improves the connection between Crofton and Chemainus. It includes a wider deck that facilitates two-way traffic and includes a new bike lane for safe pedestrian and cycling passage as part of the Trans-Canada Trail, and the Cowichan Valley Regional Trail and Cycle Network. The project also included a partnership with the Halalt First Nation to enhance a Chemainus River side channel for salmon rearing.

BOYS ROAD ULTRAVIOLET (UV) WATER TREATMENT FACILITY

North Cowichan’s new water treatment plant for South End water users was completed in October 2013. The state-of-the-art ultraviolet water disinfection system provides continuous treatment of the well water supply without chemicals. The new building has been designed as a post-disaster seismic structure. Electrical upgrades to the 35-year old electrical control system, funded in part by a grant of $41,000 from BC Hydro, will help North Cowichan reduce its electrical costs



COWICHAN REGIONAL VISITOR CENTRE

CLIMATE ACTION AND ENERGY PLAN

With strong community support and collaboration, North Cowichan adopted a Climate Action and Energy Plan in February 2013 to help guide the future of land use, local economy, energy use, and emissions reductions in our community. The Community Energy Association recognized the Plan with its top Climate & Energy Action Award at the 2013 Union of BC Municipalities Annual Convention. The award specifically acknowledged the establishment of the Climate Action Reserve Fund which will enable North Cowichan to implement the Plan’s strategies and recommendations to reduce carbon emissions, conserve energy and save money over the next few decades.


COWICHAN REGIONAL VISITOR CENTRE

The construction of a new Regional Visitor Centre at the south-east corner of the Trans-Canada Highway and Drinkwater Road began in the spring and was completed at the end of the year. The project was managed by North Cowichan for the BC Forest Discovery Centre and the Duncan-Cowichan Chamber of Commerce. Working with a challenging triangular site, the diagonal cross section of a barn was the inspiration for the intriguing design that reflects the rich agricultural heritage of the Cowichan Valley.

REVITALIZATION

North Cowichan Council adopted a Revitalization Tax Exemption Bylaw. The Bylaw is expected to encourage new, mixed use developments in our urban areas and industrial developments in our industrially-zoned properties, support economic growth and create jobs.

The first eligible development to take advantage of the new Revitalization Tax Exemption Bylaw is the new four-storey building on James Street in the University Village area. This mixed use development (office and residential) is expected to be completed in 2014, and will be a significant kick start to revitalization of this area.

NEW WEBSITE LAUNCH

In August, North Cowichan launched the newly-designed Municipal website at www.northcowichan.ca. The new site features improved navigation and organization of Municipal services, text size controls, language translation options, an improved search tool and a Spotlight function to bring attention to promoted programs. The new site design makes it easier for our audience to access information related to Council and Committees along with the numerous Parks and Recreation programs that run throughout the year.


CROFTON LOCAL AREA PLANNING PROCESS

Early in 2013, North Cowichan began a planning process with Crofton residents to develop a local area land use plan for Crofton. The local area plan for Crofton will be built on the goals and principles of the Official Community Plan by specifically reflecting the needs of residents and businesses now, and anticipating what will be needed in the future. The Plan is intended to provide strategic guidance for future decisions related to things such as land use, urban form, mobility and infrastructure issues. Based on enthusiastic participation in the public engagement process, the resulting Plan is expected to enhance the strong sense of community that currently exists for years to come.


COWICHAN AQUATIC CENTRE


NEW PARTNERS IN COWICHAN AQAUTIC CENTRE

Thanks to agreements reached between Regional District Electoral Areas A, B, C, D and E during 2013, more Cowichan Valley residents are able to enjoy the Cowichan Aquatic Centre at normal rates. This full-featured facility continues to draw people from all parts of the region who appreciate the variety of fitness classes, programs, and, of course, the pools!

MUNICIPAL HALL ADDITION

A long-awaited addition to the Municipal Hall was built in 2013. The existing Municipal Hall was constructed in 1967 and had reached capacity. The new addition provides additional offices, meeting rooms, a customer service counter, washrooms with showers and lockers, and collaborative workstations. As part of the Municipality’s commitment to “Wood First” the addition plan incorporated wood into many of the addition’s design elements. It is expected that this new addition will meet North Cowichan’s space needs for many years to come.

UNIVERSITY VILLAGE LOCAL AREA PLAN

Commencing in June 2013, the planning process began for the development of a local area land use plan for the area around Vancouver Island University / James Street / Beverly Street, known as University Village. This area has been identified as a key growth centre in North Cowichan’s Official Community Plan. North Cowichan, in collaboration with the City of Duncan, is exploring creative options for future growth and change in this area to produce a plan that will address long-term development. The Plan will also provide the foundation for economic, environmental and social development of the University Village area. Late in 2013, the project scope expanded to include Cowichan Tribes and the Ministry of Transportation and Infrastructure to make recommendations on how to improve the movement and safety of pedestrians, cyclists and vehicles along the Trans-Canada Highway corridor. It is expected that a draft plan will be ready for Council consideration in 2014.


REPORTFROM THE DIRECTOR OF FINANCEMay 7, 2014

Mayor and CouncilMunicipality of North Cowichan

Your Worship and Members of Council,

I am pleased to present the Municipality of North Cowichan’s 2013 Annual Financial Report for the fiscal year ended December 31, 2013, as required by sections 98 and 167 of the Community Charter.

This report includes the auditor’s report, the 2013 financial statements, and supplementary information for the Municipality of North Cowichan.

The Consolidated Financial Statements are the responsibility of the management of the Municipality of North Cowichan and were prepared by municipal staff in accordance with generally accepted accounting principles for local governments, as recommended by the Public Sector Accounting Board (PSAB) of the Canadian Institute of Chartered Accountants, and have been applied on a basis consistent with that of the preceding year.

The Municipality maintains a system of internal accounting controls designed to safeguard the assets of the Corporation and to provide reliable financial information. We confirm and test these systems on a cyclical basis by contracted audit services.

The audit firm Hayes, Stewart, Little and Company was appointed by Council and is responsible for expressing an opinion as to whether the consolidated financial statements fairly present the financial position of the Municipality of North Cowichan and the results of its 2013 operations.

The 2013 audited financial statements were presented to and approved by Council.

As at December 31, 2013, the Municipality had an accumulated surplus of $267 million, an increase of $11.1 million for the year. This is largely comprised of net investments in tangible capital assets ($237 million), which includes land, park infrastructure, roads, and utility assets. Debenture debt increased by $0.77 million to $22.3 million. The reserves increased by $.258 million to $6.5 million.

Consolidated revenues increased by $7.6 million, taxation increased by $1.26 million, grants increased by $5.5 million and collections from developers and others decreased by $.46 million. Expenses increased by $0.7 million.

Capital expenditures for the year were $20.1 million including $2.2 million in roads projects, $4.5 million on the Chemainus River Bridge, $4.9 million on the Lakes Road/Beverly Street dike, $4.9 million for water projects, $2.1 million on the Municipal Hall expansion, $.7 million for sewer projects and $.7 million in infrastructure contributed by developers.

In 2013, North Cowichan increased the budget for tax supported capital from $2.86 million to $2.89 million. This amounted to 12.2% of 2013 property taxes being allocated to general capital compared to 12.7% in 2012. This is consistent with Council’s Revenue, Tax and Budget Policy adopted in 2010 requiring adequate capital funding of 10-15% of property tax revenues.

Respectfully,

Mark Frame, CGA Director of Finance

FINANCIAL REPORTING AWARDCANADIAN AWARD FOR FINANCIAL PLANNINGThe Government Finance Officers Association of the United States and Canada (GFOA) awarded a Canadian Award for Financial Reporting to the District of North Cowichan for its Annual Report of the fiscal year ended December 31, 2012. The Canadian Award for Financial Reporting program was established to encourage municipal governments throughout Canada to publish high quality financial reports and to provide peer recognition and technical guidance for officials preparing these reports.

In order to be awarded a Canadian Award for Financial Reporting, a government unit must publish an easily readable and efficiently organized annual financial report whose contents conform to program standards. Such reports should go beyond the minimum requirements of generally accepted accounting principles, and demonstrate an effort to clearly communicate the municipal government’s financial picture, enhance an understanding of financial reporting by municipal governments and address user needs.

A Canadian Award for Financial Reporting is valid for a period of one year only. We believe our current report continues to conform to the Canadian Award for Financial Reporting program requirements, and we are submitting it to GFOA.


The Corporation of the District of North CowichanCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2013

[AUDITED]DECEMBER 31, 2013


THE CORPORATION OF THE DISTRICT OF NORTH COWICHAN

Statement of Responsibility

The accompanying consolidated financial statements are the responsibility of the management of the District of North Cowichan and have been prepared in compliance with legislation, and in accordance with generally accepted accounting principles established by the Public Sector Accounting Board of The Canadian Institute of Chartered Accountants.

In carrying out its responsibilities, management maintains appropriate systems of internal and administrative control designed to provide reasonable assurance that transactions are executed in accordance with proper authorization, that assets are properly accounted for and safeguarded, and that financial information produced is relevant and reliable.

The North Cowichan Municipal Council met with management and the external auditors to review the consolidated financial statements and discuss any significant financial reporting or internal control matters before approving the consolidated financial statements.

Hayes Stewart Little & Company, as the Municipality’s appointed external auditors, has audited the consolidated financial statements. The Auditor’s report is addressed to the Mayor and members of Council and appears on the following page. Their opinion is based upon an examination conducted in accordance with Canadian generally accepted auditing standards, performing such tests and other procedures as they consider necessary to obtain reasonable assurance that the consolidated financial statements are free of material misstatement and present fairly the financial position and results of the Municipality in accordance with Canadian generally accepted accounting principles.

Dave Devana

Chief Administrative Officer

May 7, 2014

www.hslco.com

DUNCAN NANAIMO VICTORIA 823 Canada Ave. 30 Front St. 1000-747 Fort St. Duncan, BC V9L 1V2 Nanaimo, BC V9R 5H7 Victoria, BC V8W 3E9 Tel: 250.746.4406 | Fax: 250.746.1950 Tel: 250.753.2544 | Fax: 250.754.1903 Tel: 250.383.8994 | Fax: 250.383.8904

Duncan: 888.746.4406 | Nanaimo: 888.754.9551 | Victoria: 855.383.8994

INDEPENDENT AUDITOR'S REPORT To the Mayor and members of Council of THE CORPORATION OF THE DISTRICT OF NORTH COWICHAN Report on Consolidated Financial Statements We have audited the accompanying consolidated financial statements of The Corporation of The District of North Cowichan, which comprise the consolidated statement of financial position as at December 31, 2013, and the consolidated statement of operations, change in net financial assets, and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information. Management's Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with Canadian public sector accounting standards and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. These standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free 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 judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluation of the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, these consolidated financial statements present fairly, in all material respects, the financial position of The Corporation of The District of North Cowichan as at December 31, 2013 and its financial performance, changes in net financial assets and its cash flow for the year then ended in accordance with Canadian public sector accounting standards. Other Matter Our audit was made for the purpose of forming an opinion on the consolidated financial statements taken as a whole. The current year's supplementary information, including Schedules 1 to 11, has been presented for purposes of additional analysis. The supplementary information has been subjected to the auditing procedures applied in the audit of the consolidated financial statements and, in our opinion, this supplementary information is presented fairly, in all material respects, in relation to the consolidated financial statements taken as a whole.

Duncan, BC Chartered Accountants May 7, 2014


RESTATEDFINANCIAL ASSETS 2013 ACTUAL 2012 ACTUALCash and cash equivalents (Notes 2 and 4) $2,413,069 $3,111,980

Temporary investments (Notes 2 and 4) 36,380,283 36,459,064

Accounts receivable (Note 5) 5,772,630 3,583,586

Property acquired for taxes (Note 2) 4,137,209 4,137,296

Deposit - Municipal Finance Authority (Note 9) 1,239,090 1,365,559

49,942,281 48,657,485

LIABILITIESAccounts payable and accrued liabilities (Note 6) 6,004,622 4,120,279

Employee future benefits and wages payable (Note 2) 3,445,902 3,233,289

Unearned revenue (Note 7) 3,285,328 3,757,362

Reserve - Municipal Finance Authority (Note 9) 1,239,090 1,365,559

Restricted reserves (Note 11) 6,765,155 7,195,898

Debenture debt (Note 13) 22,272,673 21,503,802

43,012,770 41,176,189

NET FINANCIAL ASSETS 6,929,511 7,481,296

NON-FINANCIAL ASSETS Tangible capital assets (Schedule X) 259,490,915 247,822,061

Inventory of supplies (Note 2) 614,153 606,464

Prepaid items 54,923 54,172

260,159,991 248,482,697

ACCUMULATED SURPLUS (Note 15 and 19) $267,089,502 $255,963,993

COMMITMENTS AND CONTINGENT LIABILITIES (Note 14)

Approved by:

M. Frame,

Director of Finance

See accompanying notes to the financial statements.


Consolidated Statement of Financial PositionAS AT DECEMBER 31, 2013, WITH COMPARATIVE FIGURES FOR 2012


Consolidated Statement of OperationsAS AT DECEMBER 31, 2013, WITH COMPARATIVE FIGURES FOR 2012

RESTATED2013 BUDGET 2013 ACTUAL 2012 ACTUAL

REVENUE (Note 16)

Taxation (Schedule I) $29,131,675 $29,157,058 $27,897,043

Sales of services (Schedule II) 9,212,724 10,147,745 8,896,641

Other revenue from own sources (Schedule III) 1,072,841 1,029,313 1,041,398

Gain on sale - 16,664 15,726

Return on investments 235,792 518,519 497,351

Grants and government transfers (Schedule IV) 7,255,930 8,106,819 2,589,619

Collections from developers and others 70,000 1,713,654 2,173,267

Transfer from cemetery trust - 4,378 4,000

46,978,962 50,694,150 43,115,045

EXPENSESGeneral government services (Schedule V) 2,931,925 3,276,183 3,027,446

Protective services (Schedule VI) 8,331,017 8,087,517 7,357,668

Transportation services (Schedule VII) 9,460,056 8,884,844 9,130,683

Environmental health services (Schedule VIII) 1,509,846 1,445,782 1,619,496

Forestry services 1,391,430 1,459,565 1,214,269

Environmental development services 1,111,510 1,032,004 928,357

Recreation and cultural services (Schedule IX) 8,322,799 8,290,239 7,913,099

Interest 1,438,789 1,370,213 1,413,970

Water 3,650,710 3,311,480 3,200,407

Sewer 3,992,295 2,950,753 3,098,018

Write down of asset - 233,766 -

Loss on sale - 5,775 224,134

Actuarial adjustment to debt - (779,480) (287,724)

42,140,377 39,568,641 38,839,823

ANNUAL SURPLUS $4,838,585 11,125,509 4,275,222

ACCUMULATED SURPLUS, BEGINNING OF YEAR (Note 15 and 19) 255,963,993 251,688,771

ACCUMULATED SURPLUS, END OF YEAR (Note 15 and 19) $267,089,502 $255,963,993




Consolidated Statement of Changes in Net Financial AssetsFOR THE YEAR ENDED DECEMBER 31, 2013, WITH COMPARATIVE FIGURES FOR 2012

RESTATED2013 BUDGET 2013 ACTUAL 2012 ACTUAL

(Note 16)

ANNUAL SURPLUS $4,838,585 $11,125,509 $4,275,222

Acquisition of tangible capital assets (23,577,832) (20,083,207) (11,607,938)

Amortization of tangible capital assets 8,071,200 8,174,811 7,825,301

Gain on sale of tangible capital assets - (16,664) (15,726)

Loss on sale of tangible capital assets - 5,775 224,134

Proceeds on sale of tangible capital assets - 16,664 84,600

Write-downs of tangible capital assets - 233,766 -

(15,506,632) (11,668,855) (3,489,629)

Decrease (Increase) in prepaids - (750) 43,761

Increase in inventories - (7,689) (8,383)

- (8,439) 35,378

CHANGE IN NET FINANCIAL ASSETS (10,668,048) (551,785) 820,971

NET FINANCIAL ASSETS AT BEGINNING OF YEAR 7,481,296 7,481,296 6,660,325

NET FINANCIAL ASSETS AT END OF YEAR $(3,186,751) $6,929,511 $7,481,296



Consolidated Statement of Cash FlowFOR THE YEAR ENDED DECEMBER 31, 2013, WITH COMPARATIVE FIGURES FOR 2012

RESTATED2013 ACTUAL 2012 ACTUAL

OPERATING TRANSACTIONSAnnual surplus $11,125,509 $4,275,222

Non-cash items included in surplus:

Amortization of tangible capital assets 8,174,811 7,825,301

Actuarial adjustment to debt (779,480) (287,724)

Write-downs of tangible capital assets 233,766 -

Loss (Gain) on sale of tangible capital assets (10,889) 208,408

18,743,717 12,021,207

Temporary investments 78,781 (3,363,299)

Accounts receivable (2,189,044) 2,333,218

Inventory of supplies (7,689) (8,383)

Prepaid items (750) 43,761

Land acquired for taxes 87 124,173

Accounts payable 1,884,344 (1,101,759)

Accumulated sick leave 212,613 369,570

Unearned revenue (472,034) (220,833)

Restricted reserves (430,744) 652,419

Cash provided by operating transactions 17,819,281 10,850,074

CAPITAL TRANSACTIONSProceeds on sale of tangible capital assets 16,664 84,600

Cash applied to acquire tangible capital assets (20,083,207) (11,607,938)

Cash applied to capital transactions (20,066,543) (11,523,338)

FINANCING TRANSACTIONSProceeds from debenture debt 2,500,000 745,475

Repayment of debenture debt (951,649) (925,870)

Cash applied to financing transactions 1,548,351 (180,395)

CHANGE IN CASH AND CASH EQUIVALENTS (698,911) (853,659)

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 3,111,980 3,965,639

CASH AND CASH EQUIVALENTS, END OF YEAR $2,413,069 $3,111,980




Notes to the Consolidated Financial StatementsFOR THE YEAR ENDED DECEMBER 31, 2013

1. GENERAL

The Corporation of the District of North Cowichan (the Corporation) was incorporated in 1873 under a statute of the Province of British Columbia and operates under the provisions of the Local Government Act and the Community Charter of British Columbia. The principal activities include community development, parks and recreation, police and fire protection, road transportation, forestry management, cemetery, solid waste, water utility, sewer utility, and fiscal services.

2. SIGNIFICANT ACCOUNTING POLICIES

It is the Corporation’s policy to follow Canadian public sector accounting standards and to apply such principles consistently. The following is a summary of the Corporation’s significant policies:

a) BASIS OF PRESENTATION

These consolidated financial statements consolidate the following operations:

General Capital Fund

General Revenue Fund

Reserve Fund

Water Systems Capital Fund

Water Systems Revenue Fund

Sewer Systems Capital Fund

Sewer Systems Revenue Fund

The Corporation has an interest in a significant cost sharing arrangement – the Duncan – North Cowichan Joint Utilities Board. Adjustments have been made to these consolidated statements to include the Corporation’s proportionate share of assets, liabilities and net revenues over expenditures of the administrative body at approximately the following percentage:

Duncan-North Cowichan Joint Utilities Board 53.2%

b) BASIS OF ACCOUNTING

The Corporation follows the accrual method of accounting for revenues and expenses. Revenues are normally recognized in the year in which they are earned and measurable. Expenses are recognized as they are incurred and measurable as a result of the delivery of goods or services and/or upon the creation of a legal obligation to pay. Expenses paid in the current period and attributable to a future period are recorded as prepaid.

c) REVENUE RECOGNITION

i) Taxation revenues are recognized at the time of issuing the property tax notices for the fiscal year.

2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

c) REVENUE RECOGNITION (CONTINUED)

ii) Sale of services and user fee revenues are recognized when the service or product is rendered by the Corporation.

iii) Grant revenues are recognized when the funding becomes receivable.iv) Revenue unearned in the current period is recorded as deferred revenue.v) Government transfers are recognized in the period in which events giving rise to the

transfer occur, providing the transfers are authorized, any eligibility criteria have been met and reasonable estimates of the amounts can be made.

d) CASH AND CASH EQUIVALENTS

Cash and cash equivalents consist of cash on deposit in qualifying institutions as defined in the community charter.

e) INVESTMENTS

Investments are recorded at cost which at December 31, 2013, would approximate market value. Investments consist of cash on deposit in the Municipal Finance Authority (“MFA”) investment funds that are highly liquid, readily convertible to cash, and are subject to an insignificant risk of change in value.

f) PROPERTY AQUIRED FOR TAXES – DEEDED TO MUNICIPALITY

Land is shown at estimated historical cost.

g) EMPLOYEE FUTURE BENEFITS AND WAGES PAYABLE

The Corporation and its employees make contributions to the Municipal Pension Plan. The Corporation’s contributions are expensed as paid.

Sick leave cash-out and severance benefits accrue to the Corporation’s employees. The liability relating to these benefits is determined in accordance with Section PS 3255 of the Public Sector Accounting Handbook of the Canadian Institute of Chartered Accountants. Actuarial gains and losses are amortized on a straight-line basis over the average remaining service life of employees.

The following amounts are the accrued liabilities in respect of Employee Future Benefits and wages payable:

2013 2012

Wages payable $663,273 $669,805

Sick leave cash-out and severance benefits 2,782,629 2,563,484

$3,445,902 $3,233,289





g) EMPLOYEE FUTURE BENEFITS AND WAGES PAYABLE (CONTINUED)

Under the terms of the union contract, sick leave not taken in a year is carried forward to a maximum accumulation for 180 working days for each employee. On retirement or termination of employment after 5 years of service, sick leave accumulated is paid out at the employee’s prevailing wage rate.

The Corporation also provides 30 days of paid leave at retirement, as prescribed by the Pension (Municipal) Act, at the employee’s prevailing wage rate.

The liabilities for sick leave cash-out and severance benefits are based on an actuarial valuation as at December 31, 2013.

2013 2012

Accrued benefit obligation $2,668,873 $2,588,522Unamortized actuarial gain/(loss) 113,756 (25,038)Accrued benefit liability $2,782,629 $2,563,484

Benefit expense: Current service cost $272,706 $246,965 Interest cost 74,400 70,235 Amortization of net actuarial (gain)/loss 7,524 15,317

$354,630 $332,517

Significant actuarial assumptions as at December 31st include:

2013 2012

Valuation interest rate 3.00% 2.80%Rate of compensation increase 3.75% 3.75%Expected coverage remaining service life (in years) 9.9 10.0

h) APPROPRIATED SURPLUS – GENERAL REVENUE FUND

General Revenue Fund appropriations are non-statutory reserves established at the discretion of Council. These reserves are outlined in Note 15.

i) The reserve for property acquired for taxes is an amount set aside to offset the carrying value of property acquired for taxes.


h) APPROPRIATED SURPLUS – GENERAL REVENUE FUND

ii) Reserves for future expenditures are amounts set aside from past and current operations for future operating and capital expenditures.

iii) The reserve for uncollected taxes is an amount set aside to offset uncollected taxes.iv) The reserve for mural protection is an amount set aside for the protection, enhancement

and maintenance of the Chemainus murals and is established by by-law.v) The reserve for the Joint Utilities Board is an amount set aside for future capital expendi-

tures, established at the discretion of the Board.

i) USE OF ESTIMATES

The preparation of financial statements in accordance with Canadian generally accepted accounting principles as recommended by PSAB requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenditure during the reporting period. Significant areas requiring the use of management estimates relate to the determination of accrued sick benefits and retirement liability, collectability of accounts receivable, amortization of capital assets, deferred charges and provisions for contingencies. Actual results could differ from those estimates. Adjustments, if any, will be reflected in operations in the period of settlement.

j) LEASES

Leases are classified as capital or operating leases. Leases which transfer substantially all of the benefits and risks incidental to the ownership of property are accounted for as capital leases. All other leases are accounted for as operating leases and the related lease payments are charged to expenses incurred.

k) NON-FINANCIAL ASSETS

Non-financial assets are not available to discharge existing liabilities and are held for use in the provision of services. They have useful lives extending beyond the current year and are not intended for sale in the ordinary course of operations. The change in non-financial assets during the year, together with the excess of revenues over expenses, provides the change in net financial assets for the year.

l) TANGIBLE CAPITAL ASSETS

Tangible capital assets are recorded at cost less accumulated amortization and are classified according to their functional use. Cost includes all amounts that are directly attributable to the acquisition, construction, development or betterment of the asset. Donated assets are recorded at their estimated fair value upon acquisition. Certain tangible capital assets for which historical





l) TANGIBLE CAPITAL ASSETS (CONTINUED)

cost information was not available were recorded at the current fair market values, in the year of recognition, discounted by a relevant inflation factor. Certain assets are disclosed at a nominal value as the determination of current fair market value was not available. The cost, less residual value, of the tangible capital assets is amortized on a straight-line basis over their estimated useful lives as follows:

Land IndefiniteLand Improvements 10 to 30 yearsBuildings 15 to 50 yearsEngineering Structures 10 to 60 yearsMachinery & Equipment 5 to 40 yearsCapital Works In Progress Life determined when complete

Amortization is charged on a monthly basis, starting the month following the date of acquisition and ending in the month of disposition. Capital works in progress are not amortized until the asset is available for productive use.

Certain assets, which have historical or cultural value including works of art, historical documents, as well as historical and cultural artifacts, are not recognized as tangible capital assets because a reasonable estimate of the future benefits associated with such property cannot be made. Intangibles, Crown lands that have not been purchased by the Corporation, water, and other natural resources, are not recognized as tangible capital assets.

i) Contributions of tangible capital assets

Tangible capital assets received as contributions are recorded at their estimated fair value at the date the Corporation acquires ownership and are recorded as revenue.

Land and infrastructure assets contributed to the Corporation in 2013 totaled $663,420 (2012 - $2,173,267) and were capitalized at their fair value at the time of receipt.

m) MATERIALS AND SUPPLIES

Inventories of materials and supplies are valued at weighted average cost with allowance made for damaged or obsolete goods.

3. FINANCIAL INSTRUMENTS

The Corporation’s financial instruments consist of cash and cash equivalents, temporary investments, ac-counts receivable, accounts payable and accrued liabilities, restricted reserves, and debenture debt. The carrying amount of these financial instruments approximates their fair value because they are short-term in nature or because they bear interest at market rates. Unless otherwise noted, it is management’s opinion that the Corporation is not exposed to significant interest or credit risks arising from these financial instruments.

4. CASH AND INVESTMENTS

Cash and investments are comprised of cash on hand, cash on deposit at financial institutions and investments held in the Municipal Finance Authority of British Columbia investments funds.

2013 2012

Cash $2,413,069 $3,111,980Temporary Investments 36,380,283 36,459,064

$38,793,352 $39,571,044

Temporary Investments consist of short-term investments in the Municipal Finance Authority of BC money market and intermediate funds and the market value is equal to the carrying value. Temporary Investments have yields ranging from 1.03% to 1.70%.

Included in investments are the following restricted amounts that can only be expended in accordance with the terms of the Reserve and Restricted Reserve Funds.

2013 2012

Restricted Investments $13,233,941 $13,621,425

5. ACCOUNTS RECEIVABLE

2013 2012

Property taxes $2,214,264 $1,861,523Water rates 135,570 129,569Federal government 353,117 407,391Provincial government 1,624,077 604,222Local government 442,806 200,036General 1,002,796 380,845

$5,772,630 $3,583,586



Notes to the Consolidated Financial Statements FOR THE YEAR ENDED DECEMBER 31, 2013

6. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

2013 2012

General $5,339,605 $3,537,228Salaries and wages 465,729 375,567Accrued Interest 199,288 207,484

$6,004,622 $4,120,279

7. UNEARNED REVENUE

2012 Contributions and interest

Revenue earned or refunded

2013

Prepaid taxes and licenses $1,265,845 $1,377,470 $1,265,845 $1,377,470Service fees and deposits 1,990,886 684,229 1,036,308 1,638,807Aquatic Centre unearned revenue

95,855 442,607 397,372 141,090

General unearned revenues 190,046 12,151 74,236 127,961Cowichan Place – City of Duncan

214,730 - 214,730 -

$3,757,362 $2,516,457 $2,988,491 $3,285,328

8. LISTING OF OPERATING EXPENDITURES BY OBJECT TYPE

The following provides a summary of operating expenses by object:

2013 2012(Restated)

Salaries, wages and benefits $14,841,611 $14,410,936Contract services 11,448,715 10,488,458Amortization 8,174,811 7,825,301Materials and supplies 4,506,996 4,764,748Interest 590,733 1,126,246Other 5,775 224,134Total expense $39,568,641 $38,839,823

9. MUNICIPAL FINANCE AUTHORITY – RESERVE DEPOSITS

The Corporation issues debt instruments through the Municipal Finance Authority. As a condition of these borrowings, a portion of the debenture proceeds are withheld by the Municipal Finance Authority as a debt reserve fund. The Corporation also executes demand notes in connection with each debenture whereby the Corporation may be required to loan certain amounts to the Municipal Finance Authority. The details of the cash deposits and demand notes at year end are as follows:

2013 2012

Cash deposits $362,266 $404,249Demand notes 876,824 961,310

$1,239,090 $1,365,559

10. FUNDS HELD IN TRUST

These funds account for assets, which must be administered as directed by agreement or statute for certain beneficiaries. In particular, these funds are for the Cemetery Trust Fund. In accordance with PSAB recommendations on financial statement presentation for local governments, trust funds are not included in the Corporation’s Consolidated Financial Statements. A summary of trust fund activities by the Corporation is as follows:

2013 2012

AssetsCash and short term investments $310,979 $299,738

EquityOpening balances $299,738 $291,469Contributions 15,619 12,269Transfer to general revenue fund (4,378) (4,000)

$310,979 $299,738

11. RESTRICTED RESERVES

Receipts which are restricted by the legislation of senior governments are deferred and reported as liabilities. Included in liabilities are reserves for development cost charges, the use of which, with any earnings thereon, is restricted by legislation or agreement with external parties. These amounts are recognized as revenue in the period in which corresponding expenditures are incurred.

Development Cost Charges 2013 2012

Opening balances $7,195,898 $6,543,479Contributions 439,906 560,383Return on investment 106,951 92,036Transfer to capital (977,600) -

$6,765,155 $7,195,898




12. FEDERAL GAX TAX AGREEMENT FUNDS

Gas Tax funding is provided by the Government of Canada. The use of the funding is established by a

funding agreement between the Corporation and the Union of British Columbia Municipalities. Gas Tax funding may be used towards designated public transit, community energy, water, wastewater, solid waste and capacity building projects, as specified in the funding agreements.

Federal Gas Tax Agreement Funds 2013 2012

Opening balance of unspent funds $0 $0Add: Amount received during the year 790,235 790,580Less: Amount spent (790,235) (790,580)Closing balance of unspent funds $0 $0

13. DEBENTURE DEBT

M.F.A Issue

Number

Interest Rate

Maturity Date Originally Approved

2013

Net Unmatured

2012

Net Unmatured

General Capital FundChemainus Safety Bld 60 4.75% Apr 12, 2015 $1,950,000 $- $426,115Maple Bay Fire Hall 95 4.17% Apr 12, 2025 1,600,000 1,104,912 1,175,618Maple Bay Fire Hall 103 4.65% Apr 23, 2028 500,000 409,055 428,698Cowichan Aquatic Ctr 104 5.15% Nov 20, 2028 15,000,000 12,271,656 12,860,945Cowichan Aquatic Ctr 106 4.13% Oct 12, 2029 2,265,500 1,942,431 2,028,010Duncan Curling Club N/A 4.00% Jan 15, 2032 551,500 514,245 533,244Tier 2 Flood Protection 121 2.90% Oct 4, 2032 745,475 720,440 745,475 Tier 2 Flood Protection 124 3.15% Apr 8, 2033 1,000,000 1,000,000 -Municipal Hall Expansion

126 3.85% Sep 26, 2033 1,500,000 1,500,000

25,112,475 19,462,739 18,198,105

Water Systems Capital FundChemainus 64 4.43% Sept 25,

2016300,000 65,556 85,361

Chemainus 110 4.50% April 8, 2030 1,750,000 1,566,550 1,630,113

Crofton 106 4.13% Oct 13, 2029 530,000 454,420 474,441

South End 63 4.00% Dec 1, 2016 590,000 128,927 167,876South End 63 4.00% Dec 1, 2016 200,000 43,704 56,907

3,370,000 2,259,157 2,414,698

13. DEBENTURE DEBT (CONTINUED)

M.F.A Issue

Number

Interest Rate

Maturity Date

Originally Approved

2013

Net Unmatured

2012

Net Unmatured

Sewer Systems Capital FundChemainus 65 4.55% Apr 24, 2017 1,207,000 343,435 419,322

Crofton 65 4.55% Apr 24, 2017 728,700 207,342 253,157

South End 60 4.75% Apr 12, 2015 1,000,000 - 218,520 2,935,700 550,777 890,999

$31,418,175 $22,272,673 $21,503,802

Future payments on net outstanding debt over the next five years and thereafter are as follows:

Year General Water Sewer TotalPrincipal repayments:

2014 $779,090 $109,531 $58,541 $947,1622015 779,896 109,531 58,541 947,9682016 780,734 109,531 58,540 948,8052017 781,607 76,566 58,540 916,7132018 782,515 76,566 - 859,081

Thereafter 8,434,940 900,998 - 9,335,93812,338,782 1,382,723 234,162 13,955,667

Actuarial sinking fund earnings:2014 146,499 52,952 69,246 268,6972015 182,732 60,207 75,635 318,5742016 220,414 67,789 82,344 370,5472017 259,603 21,215 89,390 370,2082018 300,360 25,127 - 325,487

Thereafter 6,014,349 649,144 - 6,663,4937,123,957 876,434 316,615 8,317,006

$19,462,739 $2,259,157 $550,777 $22,272,673

Interest paid during the year was $1,370.213 (2012 - $1,413,970).

14. COMMITMENTS AND CONTINGENT LIABILITIES

a) The Cowichan Valley Regional District debt is, under the provisions of the Local Government Act, a direct, joint and several liability of the Corporation and other local governments within the Cowichan Valley Regional District.




14. COMMITMENTS AND CONTINGENT LIABILITIES (CONTINUED)

b) Loan agreements with the Cowichan Valley Regional District and the Municipal Finance Authority provide that if at any time the scheduled payments provided for in the agreements are not sufficient to meet the Municipal Finance Authority’s obligations in respect to such borrowings, the resulting deficiencies become a liability of the Corporation.

c) The Corporation has guaranteed a commercial loan to a maximum of $400,000 to the Duncan-Cowichan Chamber of Commerce. The loan matures September 1, 2014.

d) The Corporation and its employees contribute to the Municipal Pension Plan (Plan), 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 multiemployer contributory pension plan. Basic pension benefits provided are based on a formula. The Plan has about 179,000 active members and approximately 71,000 retired members. Active members include approximately 173 contributors from the Corporation.

The most recent actuarial valuation as at December 31, 2012 indicated a $1,370 million funding deficit for basic pension benefits. The next valuation will be as at December 31, 2015, with results available in 2016. Employers participating in the Plan record their pension expense as the amount of employer contributions made during the fiscal year (defined contribution plan accounting). This is because the Plan records accrued liabilities and accrued assets for the Plan in aggregate with the result that there is no consistent and reliable basis for allocating the obligation, Plan assets and cost to individual employers participating in the Plan.

The Corporation paid $975,324 (2012 $894,968) for employer contributions while employees contributed $857,947 (2012 - $799,753) to the Plan in fiscal 2013.

e) At the end of the year the Corporation was involved in a number of legal actions the outcomes of which are indeterminate at this time. The Corporation carries liability insurance with a current deductible of $25,000.

f) The Corporation has entered into three operating leases for photocopiers with terms ranging from 36 to 60 months. Under the operating leases, the Corporation is required to make monthly lease payments calculated by a formula specified in the agreement. Payments in 2013 totaled $8,072. As at December 31, 2013 the estimated balance outstanding was $20,429

15. ACCUMULATED SURPLUS

2013 2012(Restated)

Operating FundsUnappropriated:

General $1,440,071 $1,177,681Water Systems 2,164,535 4,139,347Sewer Systems 9,340,222 7,981,647

12,944,828 13,298,675Appropriated:

Reserves for property acquired for taxes:Property deeded to municipality 4,137,209 4,137,209

Reserves for future expenditures:General fund 4,080,397 3,495,262Wharves 337,068 328,748Ice arena 67,053 67,053

Reserve for uncollected taxes 1,295,091 1,531,868Reserve for mural protection 26,684 18,826Reserve for Joint Utilities Board 514,144 456,732

10,457,646 10,035,69823,402,474 23,334,373

Capital FundsGeneral Capital 184,191,009 175,897,108Water Capital 27,656,072 24,719,780Sewer Capital 24,091,788 24,470,451Joint Utility Board Capital 1,279,373 1,331,484

237,218,242 226,418,823

Reserve FundsLand Sales 820,481 1,499,182Machinery and Equipment 1,968,575 1,371,486Local Area Service 1,039,722 846,899Forest 1,148,454 825,324Park Development 190,499 187,797Parkland Purchase 352,891 603,298Chemainus Parking 145,695 142,102Oceanfront - 83,235Agriculture 10,000 -Self-Insurance 113,306 111,698Climate Action and Energy Plan 136,969 18,700 Maple Bay Sewer 157,297 155,066Gravel Pits 384,897 366,010

6,468,786 6,210,797$267,089,502 $255,963,993




16. BUDGET DATA

The budget data presented in these financial statements is based upon the 2013-2017 Financial Plan Bylaw adopted by council May 1, 2013. The chart below reconciles the approved budget to the budget figures reported in these financial statements.

Financial Plan Bylaw surplus for the year $0Add back:

Principal debt repayment 1,056,402Capital expenditures 23,577,832

Less:Amortization (8,071,200)Proceeds from borrowing (2,793,150)Budgeted transfers from reserve funds (2,385,234)Budgeted transfers from Development Cost Charges (566,000)Budgeted transfers from accumulated surplus (5,980,065)

Adjusted Annual Surplus $4,838,585

17. JOINT UTILITIES BOARD

The Duncan – North Cowichan Joint Utilities Board operates and maintains joint sewer lagoons on behalf of the City of Duncan and the District of North Cowichan. The distribution of expenditures related to operations is based on the number of users in each municipality as well as users from surrounding areas in the Cowichan Valley Regional District and the Cowichan Tribes.

The Joint Utilities Board leases the sewage lagoon lands under a forty-nine year operating lease with the lease expiring July 31, 2060. The Corporation’s proportionate share of the future minimum lease payments is $159,659 per annum with an estimated annual increase of 2.2%.

Because the percentage of units owned by the partners changes from year-to-year which produces different cost shares for each partner, there is a write down or write up of asset balances. In 2013 the Corporation recorded a write down of assets in the amount of $25,687 (2012 - $0)

Financial results for the Joint Utilities Board are consolidated into the Corporation’s financial statements proportionately based on the units owned by each partner. In 2013 the Corporation’s proportion for consolidation purposes was 53.2% (2012 – 54.2%) Condensed financial information for the Joint Utilities Boards is as follows:

17. JOINT UTILITIES BOARD (CONTINUED)

2013 2012

Net financial assets $967,218 $842,637Non-financial assets 2,406,782 2,456,492

Accumulated Surplus $3,374,000 $3,299,129

Revenues $870,500 $1,892,783Expenses 795,629 778,377

Annual Surplus $74,871 $1,114,406

18. SEGMENT REPORTING

The Corporation’s operations and activities are organized and reported by fund. Services are provided by departments and their activities are reported in these funds. Certain departments have been separately disclosed in the segmented information, along with the services they provide as follows:

General Government Services

This segment includes Administration, Finance, Information Technology and other corporate services.

Protective Services

This segment includes police protection, fire protection, building and plumbing inspections, animal control, weed control, and other protective services.

Transportation Services

This segment is responsible for the construction and maintenance of the Corporation’s infrastructure, including drainage and transportation systems.

Environmental Health Services

This segment is comprised of garbage and recycling collection and the Mountain View Cemetery.

Forestry Services

This segment is responsible for the maintenance and management of the Municipal Forest Reserve.

Environmental Development Services

This segment includes planning and development, which includes processing development applications and developing related policies and regulations.




18. SEGMENT REPORTING (CONTINUED)

Recreation and Culture Services

The Parks and Recreation department manages, facilitates, and maintains a system of services, facilities, and parks to enhance the quality of life for the citizens of North Cowichan.

Water

This segment includes all of the operating activities related to the treatment and distribution of water throughout the Corporation.

Sewer

This segment includes all of the operating activities related to the collection and treatment of wastewater (sewage) throughout the Corporation.

Reserve Funds

These funds have been created to hold assets for specific future requirements pursuant to the Community Charter.

For each reported segment, revenues and expenses represent both amounts that are directly attributable to the segment and amounts that are allocated on a reasonable basis. Taxes, grants in lieu of taxes and any revenues not directly attributable to a segment are apportioned to the General Revenue Fund service based on the net annual budget.

19. PRIOR PERIOD ADJUSTMENT

During the year the Corporation identified certain arterial, collector and local roads that had been inaccurately classified which affected the historical accumulated amortization and net book values used in the prior year financial statements.

Also, during the year the Corporation changed its accounting policy for the useful lives of arterial and collector roads to more accurately reflect the net book value of these assets. The change in accounting policy affected the historical accumulated amortization and net book values used in the prior year financial statements.

The Corporation applied the adjustments for the above error and change in accounting policy retroactively and prior periods have been restated as follows:

19. PRIOR PERIOD ADJUSTMENT (CONTINUED)

Opening Accumulated SurplusAccumulated surplus, as previously reported $252,490,793

Change in accumulated amortization due to useful life changes (802,022)Opening accumulated surplus, as restated $251,688,771

2012 Annual SurplusAnnual surplus, as previously reported $4,259,463

Change in 2012 amortization due to useful life changes 14,173Change in 2012 loss on disposals of tangible capital assets due to useful life changes

1,586

Annual surplus, as restated $4,275,222

2012 Tangible Capital AssetsNet book value of tangible capital assets as previously reported $248,608,324

Change in opening accumulated amortization due to useful life changes (802,022)Change in 2012 amortization expense due to useful life changes 14,173 Change in 2012 loss on disposal of tangible capital assets due to useful life changes

1,586

Net book value of tangible capital assets, as restated $247,822,061

2012 Amortization expenseAmortization expense, as previously reported $7,839,474

Change in 2012 amortization expense due to useful life changes (14,173)Loss on disposal of tangible capital assets, as restated $7,825,301

2012 loss on disposal of tangible capital assetsLoss on disposal of tangible capital assets, as previously reported $225,720

Change in 2012 loss on disposal of tangible capital assets due to useful life changes

(1,586)

Loss on disposal of tangible capital assets, as restated $224,134

20. COMPARATIVE FIGURES

Certain comparative figures have been reclassified to conform to the current year financial statement presentation.



Schedules to the Consolidated Financial StatementsFOR THE YEAR ENDED DECEMBER 31, 2013





TAXATIONSCHEDULE I

2013BUDGET 2013 2012(Note 16)

MUNICIPAL PURPOSES:General taxation $23,764,978 $23,737,196 $22,493,092

Business Improvement Area 91,900 87,319 91,827

Utilities 893,877 893,872 820,259

Grants in lieu of taxes 253,250 253,987 253,065

Tax Penalties 280,000 364,376 327,287

Water systems 1,698,986 1,682,917 1,636,133

Sewer systems 2,148,684 2,137,391 2,275,380

Total Municipal Taxes 29,131,675 29,157,058 27,897,043

COLLECTIONS FOR OTHER GOVERNMENTS:School 12,399,500 12,400,567 12,155,133

Cowichan Valley Regional Hospital District 1,938,750 2,388,779 1,900,740

Cowichan Valley Regional District 6,156,870 6,462,047 6,036,143

BC Assessment 389,260 385,024 381,558

Municipal Finance Authority 1,100 1,077 1,082

Total Collections for other governments 20,885,480 21,637,494 20,474,656

50,017,155 50,794,552 48,371,699

Deduct: requisitions remitted to other taxing authorities (20,885,480) (21,637,494) (20,474,656)

Total Taxes Collected $29,131,675 $29,157,058 $27,897,043

SALES OF SERVICESSCHEDULE II

2013BUDGET 2013 2012(Note 16)

General government service $35,900 $38,929 $34,962

Protective services 277,550 288,172 255,306

Fire protection 158,190 156,658 160,623

Transportation service 106,150 126,821 130,725

Residential garbage - municipal 1,149,540 1,121,491 1,112,692

Forestry 1,443,325 1,904,171 1,232,674

Cowichan aquatic centre 1,749,296 1,754,454 1,568,310

Fuller Lake arena 293,830 274,576 284,275

Other recreation 24,330 48,836 35,908

Wharves 206,040 194,446 195,808

Miscellaneous 83,960 229,225 100,993

Cemetery 119,170 128,846 104,175

Water 2,055,644 2,282,609 2,135,305

Sewer 1,509,799 1,598,511 1,544,885

$9,212,724 $10,147,745 $8,896,641






OTHER REVENUE FROM OWN SOURCESSCHEDULE III

2013BUDGET 2013 2012(Note 16)

Licences and Permits $766,320 $585,902 $741,729

Fines 1,840 2,200 3,900

Rentals 271,887 421,375 276,064

Water 20,228 19,836 19,705

Sewer 12,566 - -

$1,072,841 $1,029,313 $1,041,398

GRANTS AND GOVERNMENT TRANSFERSSCHEDULE IV

2013BUDGET 2013 2012(Note 16)

OPERATING GRANTS Traffic Fines Revenue $196,000 $195,173 $399,603

Other Grants 128,930 87,150 123,705

324,930 282,323 523,308

CAPITAL GRANTS Fuel Tax 791,000 790,235 790,580

Infrastructure Grants (Prov/Fed)

Chemainus River Bridge 4,500,000 3,860,086 507,034

Diking - 3,114,175 396,697

4,500,000 6,974,261 903,731

ICBC Grants 80,000 60,000 72,000

Provincial and other Grants

Osborne Bay Sea Trail - - 300,000

Visitor Information Centre 1,560,000 - -

1,560,000 - 300,000

$7,255,930 $8,106,819 $2,589,619






GENERAL GOVERNMENT SERVICESSCHEDULE V

2013BUDGET 2013 2012(Note 16)

Legislative $235,760 $235,931 $226,182

Administration 1,185,512 1,194,636 1,131,236

Financial management 1,464,465 1,495,858 1,464,107

Common services 428,608 551,435 546,333

Other government services 137,440 221,514 156,452

Administration recoveries (574,860) (532,919) (555,953)

Amortization 55,000 109,728 59,089

$2,931,925 $3,276,183 $3,027,446

PROTECTIVE SERVICESSCHEDULE VI

2013BUDGET 2013 2012(Note 16)

POLICE PROTECTION:R.C.M.P. contract $4,389,340 $4,216,110 $3,689,920

Municipal employees 1,237,904 1,192,435 1,026,136

Crime Prevention 7,000 7,000 7,000

Building maintenance 201,430 202,168 169,975

By-law enforcement 56,980 61,637 57,973

5,892,654 5,679,350 4,951,004

FIRE PROTECTION:General fire protection 93,884 91,747 94,279

Chemainus fire hall 289,873 277,341 271,639

Crofton fire hall 250,780 273,555 246,593

Maple Bay fire hall 257,328 237,385 248,182

South End fire hall 362,542 338,257 311,391

1,254,407 1,218,285 1,172,084

OTHER PROTECTION:Building and plumbing inspections 497,090 513,987 542,373

Animal control 150,700 144,431 150,564

Weed control 7,046 8,138 7,172

Mosquito control 42,120 26,263 40,650

696,956 692,819 740,759

Amortization 487,000 497,063 493,821

$8,331,017 $8,087,517 $7,357,668






TRANSPORTATION SERVICESSCHEDULE VII

2013 RESTATEDBUDGET 2013 2012(Note 16)

Administration $1,332,676 $1,208,113 $1,198,322

Small tools and equipment 47,870 64,708 62,059

Workshop and yard maintenance 144,028 134,152 176,563

Roads - construction 313,348 333,456 339,856

Roadway surfaces maintenance 1,757,876 1,517,247 1,492,149

Snow and ice removal 382,988 325,166 409,501

Bridge - maintenance 6,370 5,771 23,926

Street lighting 395,246 412,400 389,761

Signs and line painting 261,210 229,261 231,591

Drainage 500,677 537,342 560,447

Sidewalk maintenance 31,362 34,887 35,465

Other transportation 183,855 170,184 157,661

Engineering and public works recoveries (227,450) (519,802) (232,559)

Amortization 4,330,000 4,431,959 4,285,941

$9,460,056 $8,884,844 $9,130,683

ENVIRONMENTAL HEALTH SERVICES

SCHEDULE VIII

2013BUDGET 2013 2012(Note 16)

Garbage collection and recycling $1,064,442 $1,074,130 $1,373,035

Mountain View Cemetery 167,420 139,066 127,699

Energy Manager 66,598 80,132 -

Energy Upgrades Buildings 42,346 30,890 -

Carbon Offsets 23,440 - -

Climate Action Energy Plan 23,600 - -

Amortization 122,000 121,564 118,762

$1,509,846 $1,445,782 $1,619,496

Annual Report 2013 | 5150 | Municipality of North Cowichan



RECREATION AND CULTURAL SERVICES

SCHEDULE IX

2013BUDGET 2013 2012(Note 16)

Administration $116,460 $89,107 $87,479

Crofton swimming pool 52,460 53,257 50,799

Cowichan aquatic centre 2,986,633 3,170,347 2,926,282

Fuller Lake arena 917,969 916,415 959,342

Parks common services 42,850 36,752 26,762

Community recreation program 85,030 81,962 86,590

Chemainus parks and playgrounds 426,780 387,075 377,519

Crofton parks and playgrounds 153,890 195,113 188,353

South end parks and playgrounds 1,037,830 889,845 854,712

Wharves 172,630 152,188 142,498

Library 1,177,917 1,177,916 1,107,132

Grants-in-aid 146,350 146,759 114,437

Amortization Expense 1,006,000 993,503 991,194

$8,322,799 $8,290,239 $7,913,099

TAN

GIB

LE C

APITA

L AS

SETS

SCH

EDUL

E X

COST

ACCU

MUL

ATED

AM

ORT

IZAT

ION

NET

BO

OK

VALU

EBa

lanc

e D

ecem

ber

31,

2012

2013

Ad

ditio

ns20

13

Dis

posa

ls

Bala

nce

Dec

embe

r 31

, 20

13

Bala

nce

Dec

embe

r 31

, 20

1220

13

Addi

tions

2013

D

ispo

sals

Bala

nce

Dec

embe

r 31

, 20

1320

1220

13

Land

$35

,512

,189

$

1,12

4,78

5 $

- $

36,6

36,9

74

$-

$-

$-

$-

$35

,512

,189

$

36,6

36,9

74

Land

Im

prov

emen

ts 7

,869

,758

6

81,2

72

-

8,5

51,0

30

2,9

50,7

76

341

,069

-

3

,291

,845

4

,918

,982

5

,259

,185

Build

ings

41,

516,

417

4,9

23,2

53

-

46,

439,

670

12,

750,

324

1,1

08,6

55

-

13,

858,

979

28,

766,

093

32,

580,

691

Engi

neer

ing

Stru

ctur

es 2

49,1

48,8

86

14,

863,

072

-

263

,986

,271

9

1,50

6,83

7 5

,165

,721

-

9

6,67

2,55

8 1

57,6

42,0

50

167

,313

,713

Mac

hine

ry &

Eq

uipm

ent

30,

062,

033

2,4

56,5

07

289

,236

3

2,22

9,30

4 1

4,31

2,18

1 1

,559

,366

2

83,4

61

15,

588,

086

15,

749,

852

16,

641,

218

Wor

k In

Pro

gres

s 5

,232

,895

7

52,4

59

4,9

26,2

20

1,0

59,1

34

-

-

-

-

5,2

32,8

95

1,0

59,1

34

$36

9,34

2,17

8 $

24,8

01,3

48

$5,

215,

456

$38

8,90

2,38

3 $

121,

520,

118

$8,

174,

811

$28

3,46

1 $

129,

411,

468

$24

7,82

2,06

1 $

259,

490,

915

THE

CORP

ORA

TIO

N O

F TH

E D

ISTR

ICT

OF

NO

RTH

CO

WIC

HAN

Sche

dule

s to

the

Cons

olid

ated

Fin

ancia

l Sta

tem

ents

FO

R TH

E YE

AR E

ND

ED D

ECEM

BER

31, 2

013


THE

CORP

ORA

TIO

N O

F TH

E D

ISTR

ICT

OF

NO

RTH

CO

WIC

HAN

Sche

dule

s to

the

Cons

olid

ated

Fin

ancia

l Sta

tem

ents

FO

R TH

E YE

AR E

ND

ED D

ECEM

BER

31, 2

013

OPE

RATI

ON

S BY

SEG

MEN

TSC

HED

ULE

XI

Gen

eral

go

vern

men

t se

rvic

es

Prot

ectiv

e se

rvic

esTr

ansp

orta

tion

serv

ices

Envi

ronm

enta

l he

alth

ser

vice

sFo

rest

ry

serv

ices

Envi

ronm

enta

l de

velo

pmen

t se

rvic

es

Recr

eatio

n an

d cu

ltura

l se

rvic

esW

ater

wor

ksSe

wer

Sy

stem

Rese

rve

Fund

sCa

pita

lCo

nsol

idat

ed

Reve

nues

Taxe

s $

2,41

6,50

8 $

6,02

2,29

0 $

8,13

5,39

4 $

146,

791

-

$86

5,05

5 $

5,28

2,42

6 $

1,68

2,91

7 $

2,13

7,39

1 -

$

2,46

8,28

6 $

29,1

57,0

58

Sale

s of

ser

vice

268

,154

4

44,8

30

126

,821

1

,250

,337

1

,904

,171

-

2

,272

,312

2

,282

,609

1

,598

,511

-

-

1

0,14

7,74

5

Oth

er re

venu

e fro

m

own

sour

ce 3

5,54

2 8

73,9

49

48,

572

-

-

47,

598

3,8

16

19,

836

-

-

-

1,0

29,3

13

Gai

n on

sal

e -

-

2

,664

1

4,00

0 -

-

-

-

-

-

-

1

6,66

4

Retu

rn o

n in

vest

-m

ents

21,

105

52,

595

71,

049

1,2

82

-

7,5

55

46,

133

58,

095

118

,661

1

40,9

35

1,1

09

518

,519

Prov

inci

al a

nd o

ther

go

vern

men

t gra

nts

-

201

,673

8

20,0

10

-

-

25,

223

25,

652

-

-

-

7,0

34,2

61

8,1

06,8

19

Capi

tal g

rant

s -

-

-

-

-

-

-

-

-

-

-

-

Colle

ctio

ns fr

om

deve

lope

rs a

nd

othe

rs -

-

-

-

-

-

-

-

-

2

,000

1

,711

,654

1

,713

,654

Tran

sfer

from

ce

met

ery

trus

t -

-

-

4

,378

-

-

-

-

-

-

-

4

,378

2,7

41,3

09

7,5

95,3

37

9,2

04,5

10

1,4

16,7

88

1,9

04,1

71

945

,431

7

,630

,339

4

,043

,457

3

,854

,563

1

42,9

35

11,

215,

310

50,

694,

150

Expe

nses

Wag

es a

nd s

alar

ies

2,7

16,6

00

2,3

22,7

26

2,7

35,8

92

492

,959

3

04,9

83

802

,279

3

,825

,703

9

84,6

92

655

,778

-

-

1

4,84

1,61

2

Cont

ract

ed s

ervi

ces

545

,758

4

,620

,651

1

,292

,135

5

35,5

76

1,0

74,5

42

194

,846

2

,037

,264

3

51,3

02

736

,166

6

0,47

6 -

1

1,44

8,71

6

Mat

eria

l and

sup

-pl

ies

(73,

360)

643

,993

4

34,9

78

295

,683

8

0,04

0 3

4,87

9 1

,542

,540

1

,045

,563

4

93,4

24

9,2

54

-

4,5

06,9

94

Amor

tizat

ion

109

,728

4

97,0

63

4,4

31,9

59

121

,564

-

-

9

93,5

03

929

,922

1

,091

,072

-

-

8

,174

,811

Oth

er -

-

-

-

-

-

-

5

,775

-

-

-

5

,775

Inte

rest

15,

315

115

,981

4

4,60

4 -

-

-

8

87,0

16

165

,799

1

41,4

98

-

-

1,3

70,2

13

Actu

aria

l adj

ustm

ent

to d

ebt

-

(386

,969

) -

-

-

-

(9

5,06

1) (4

6,01

1) (2

51,4

39)

-

-

(779

,480

)

3,3

14,0

41

7,8

13,4

45

8,9

39,5

68

1,4

45,7

82

1,4

59,5

65

1,0

32,0

04

9,1

90,9

65

3,4

37,0

42

2,8

66,4

99

69,

730

-

39,

568,

641

Exce

ss o

f rev

enue

s ov

er e

xpen

ses

$(5

72,7

32)

$(2

18,1

08)

$26

4,94

2 $

(28,

994)

$44

4,60

6 $

(86,

573)

$(

1,56

0,62

6) $

606,

415

$98

8,06

4 $

73,2

05

$1

1,21

5,31

0 $

11,1

25,5

09

SCH

EDUL

E XI

Gen

eral

go

vern

men

t se

rvic

es

Prot

ectiv

e se

rvic

esTr

ansp

orta

tion

serv

ices

Envi

ronm

enta

l he

alth

ser

vice

sFo

rest

ry

serv

ices

Envi

ronm

enta

l de

velo

pmen

t se

rvic

es

Recr

eatio

n an

d cu

ltura

l se

rvic

esW

ater

wor

ksSe

wer

Sy

stem

Rese

rve

Fund

sCa

pita

lCo

nsol

idat

ed

Reve

nues

Taxe

s $

2,30

1,92

2 $

5,48

6,64

8 $

7,95

7,56

8 $

125,

417

-

$76

9,63

5 $

5,04

4,79

7 $

1,63

6,13

3 $

2,27

5,38

0 -

$

2,29

9,54

1 $

27,8

97,0

41

Sale

s of

ser

vice

135

,557

4

16,3

29

130

,725

1

,216

,867

1

,232

,674

-

2

,084

,300

2

,135

,305

1

,544

,885

-

-

8

,896

,642

Oth

er re

venu

e fro

m

own

sour

ce 3

5,88

2 8

34,8

83

29,

086

-

-

118

,098

3

,744

1

9,70

5 -

-

-

1

,041

,398

Gai

n on

sal

e -

-

7

,601

8

,125

-

-

-

-

-

-

-

1

5,72

6

Retu

rn o

n in

vest

-m

ents

20,

170

48,

072

69,

722

1,0

99

-

6,7

43

44,

201

51,

871

95,

846

158

,573

1

,055

4

97,3

52

Prov

inci

al a

nd o

ther

go

vern

men

t gra

nts

-

404

,603

8

15,2

80

50,

000

-

30,

000

14,

005

-

-

-

1,2

75,7

31

2,5

89,6

19

Capi

tal g

rant

s -

-

-

-

-

-

-

-

-

-

-

-

Colle

ctio

ns fr

om

deve

lope

rs a

nd

othe

rs -

-

-

-

-

-

-

-

-

-

2

,173

,267

2

,173

,267

Tran

sfer

from

ce

met

ery

trus

t -

-

-

4

,000

-

-

-

-

-

-

-

4

,000

2,4

93,5

31

7,1

90,5

35

9,0

09,9

82

1,4

05,5

08

1,2

32,6

74

924

,476

7

,191

,047

3

,843

,014

3

,916

,111

1

58,5

73

5,7

49,5

94

43,

115,

045

Expe

nses

-

Wag

es a

nd s

alar

ies

2,5

90,3

26

2,1

68,2

96

2,7

04,7

65

463

,838

2

94,7

22

699

,957

3

,722

,000

1

,021

,534

7

45,4

89

6

-

14,

410,

933

Cont

ract

ed s

ervi

ces

508

,756

4

,093

,802

1

,410

,058

5

17,9

20

817

,398

1

72,9

05

1,8

21,0

71

308

,988

8

01,8

05

35,

756

-

10,

488,

459

Mat

eria

l and

sup

plie

s (1

30,7

28)

601

,749

7

17,8

60

362

,511

1

02,1

49

35,

496

1,3

75,1

32

973

,031

5

71,0

83

156

,465

-

4

,764

,748

Amor

tizat

ion

59,

090

493

,821

4

,285

,941

1

18,7

62

-

-

991

,194

8

96,8

54

979

,640

-

-

7

,825

,302

Oth

er -

-

9

2,30

6 2

8,95

8 -

-

4

,748

1

7,20

9 8

0,91

3 -

-

2

24,1

34

Inte

rest

6,1

21

182

,595

-

-

-

-

8

87,7

59

168

,477

1

69,0

18

-

-

1,4

13,9

70

Actu

aria

l adj

ustm

ent

to d

ebt

-

(86,

110)

-

-

-

-

(69,

105)

(39,

369)

(93,

139)

-

-

(287

,723

)

3,0

33,5

65

7,4

54,1

53

9,2

10,9

30

1,4

91,9

89

1,2

14,2

69

908

,358

8

,732

,799

3

,346

,724

3

,254

,809

1

92,2

27

-

38,

839,

823

Exce

ss o

f rev

enue

s ov

er e

xpen

ses

$(5

40,0

34)

$(2

63,6

18)

$(2

00,9

48)

$(8

6,48

1) $

18,4

05

$16

,118

$(1

,541

,752

) $

496,

290

$66

1,30

2 $

(33,

654)

$5,

749,

594

$4,

275,

222

THE

CORP

ORA

TIO

N O

F TH

E D

ISTR

ICT

OF

NO

RTH

CO

WIC

HAN

Sche

dule

s to

the

Cons

olid

ated

Fin

ancia

l Sta

tem

ents

FO

R TH

E YE

AR E

ND

ED D

ECEM

BER

31, 2

012



www.hslco.com

DUNCAN NANAIMO VICTORIA 823 Canada Ave. 30 Front St. 1000-747 Fort St. Duncan, BC V9L 1V2 Nanaimo, BC V9R 5H7 Victoria, BC V8W 3E9 Tel: 250.746.4406 | Fax: 250.746.1950 Tel: 250.753.2544 | Fax: 250.754.1903 Tel: 250.383.8994 | Fax: 250.383.8904

Duncan: 888.746.4406 | Nanaimo: 888.754.9551 | Victoria: 855.383.8994

INDEPENDENT AUDITOR'S REPORT

To the Duncan - North Cowichan Joint Utilities Board,

Report on Financial StatementsWe have audited the accompanying financial statements of the Duncan - North Cowichan Joint Utilities Board, which comprise the statement of financial position as at December 31, 2013, and the statements of operations for the year then ended, and a summary of significant accounting policies and other explanatory information.

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

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, 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 the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimatesmade by management, as well as evaluation of the 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.

OpinionIn our opinion, these financial statements present fairly, in all material respects, the financial position of the Duncan - North Cowichan Joint Utilities Board as at December 31, 2013 and its financial performance and its cash flow for the year then ended in accordance with Canadian public sector accounting standards.

Duncan, BC Chartered AccountantsMay 7, 2014


2013 2012

FINANCIAL ASSETS

Investments (Notes 3 & 6) $ 967,218 $ 842,637

NET FINANCIAL ASSETS 967,218 842,637

NON-FINANCIAL ASSETS

Tangible capital assets (Schedule I) 2,406,782 2,456,492

ACCUMULATED SURPLUS $ 3,374,000 $ 3,299,129

M. Frame,

Director of Finance


DUNCAN - NORTH COWICHAN JOINT UTILITIES BOARD

Statement of Financial PositionAS AT DECEMBER 31, 2013, WITH COMPARATIVE FIGURES FOR 2012


Statement of OperationsAS AT DECEMBER 31, 2013, WITH COMPARATIVE FIGURES FOR 2012

2013BUDGET 2013 2012

REVENUEContributions from:

The Corporation of the District of North Cowichan $597,380 $442,339 $601,024

The Corporation of the City of Duncan 366,207 268,331 360,420

Cowichan Valley Regional District 170,228 134,833 173,313

Cowichan Tribes 19,322 15,616 21,287

Government Grant - - 729,110

Interest received 12,000 9,381 7,629

1,165,137 870,500 1,892,783

EXPENSES Administration 37,405 35,520 35,685

Amortization - 49,710 28,998

Sewer lagoon operation and maintenance 1,000,532 710,399 713,694

1,037,937 795,629 778,377

ANNUAL SURPLUS 127,200 74,871 1,114,406

ACCUMULATED SURPLUS, BEGINNING OF YEAR 3,299,129 3,299,129 2,184,723

ACCUMULATED SURPLUS, END OF YEAR $3,426,329 $3,374,000 $3,299,129




Notes to the Financial Statements FOR THE YEAR ENDED DECEMBER 31, 2013

1. SUMMARY OF OPERATIONS

The Duncan – North Cowichan Joint Utilities Board operates and maintains joint sewer lagoons on behalf of the City of Duncan and the District of North Cowichan. The distribution of expenditures related to operations is based on the number of users in each municipality.

2. SIGNIFICANT ACCOUNTING POLICIES

It is the Board’s policy to follow Canadian public sector accounting standards and to apply such principles consistently. The following is a summary of the Corporation’s significant policies:

a) BASIS OF ACCOUNTING

The Board follows the accrual method of accounting for revenues and expenses. Revenues are normally recognized in the year in which they are earned and measurable. Expenses are recognized as they are incurred and measurable as a result of the delivery of goods or services and/or upon the creation of a legal obligation to pay. Expenses paid in the current period and attributable to a future period are recorded as prepaid.

b) REVENUE RECOGNITION

i) Contributions from partners are recognized when invoiced.

ii) Government transfers are recognized in the period in which events giving rise to the trans-fer occur, providing the transfers are authorized, any eligibility criteria have been met and reasonable estimates of the amounts can be made.

c) CASH AND CASH EQUIVALENTS

Cash and cash equivalents consist of cash on deposit in qualifying institutions as defined in the community charter.

d) USE OF ESTIMATES

The preparation of financial statements in accordance with Canadian generally accepted accounting principles as recommended by PSAB requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenditure during the reporting period. A significant area requiring the use of management estimates relate to the determination of amortization of capital assets. Actual results could differ from those estimates. Adjustments, if any, will be reflected in operations in the period of settlement.


e) NON-FINANCIAL ASSETS

Non-financial assets are not available to discharge existing liabilities and are held for use in the provision of services. They have useful lives extending beyond the current year and are not intended for sale in the ordinary course of operations. The change in non-financial assets during the year, together with the excess of revenues over expenses, provides the change in net financial assets for the year.

f) TANGIBLE CAPITAL ASSETS

Tangible capital assets are recorded at cost less accumulated amortization and are classified ac-cording to their functional use. Cost includes all amounts that are directly attributable to the acqui-sition, construction, development or betterment of the asset. Donated assets are recorded at their estimated fair value upon acquisition. The cost, less residual value, of the tangible capital assets is amortized on a straight-line basis over their estimated useful lives as follows:

Engineering Structures 10 to 60 yearsCapital Works In Progress Life determined when complete

Amortization is charged on a monthly basis, starting the month following the date of acquisition and ending in the month of disposition. Capital works in progress are not amortized until the asset is available for productive use.

3. INVESTMENTS

Investments are carried at cost, which at December 31, 2013, would approximate market value. The balance of investments has been internally restricted by the Board and is to be expended in accordance with the terms of the reserve for capital expenditure.

4. OPERATING LEASE

The Board leased the sewage lagoon lands under a forty-nine year operating lease with the lease expiring July 31, 2060. Future minimum lease payments are $300,110 per annum with an estimated annual increase of 2.2%.

5. FINANCIAL INSTRUMENTS

The Board’s financial instruments consist of investments. The carrying amount of these financial instruments approximates their fair value because they are short-term in nature or because they bear interest at market rates.

Unless otherwise noted, it is management’s opinion that the Board is not exposed to significant interest or credit risks arising from these financial instruments.


6. CAPITAL RESERVE FUNDS

The Capital reserve funds are non-statutory reserves, for the purpose of future capital expenditures, estab-lished at the discretion of the Board. Balances and changes are outlined as follows:

2013 2012Balances, beginning of year $842,637 $719,809Add: transfer from current operations 124,581 122,828Balance, end of year $967,218 $842,637

7. LISTING OF OPERATING EXPENDITURES BY OBJECT TYPE

The following provides a summary of operating expenses by object:

2013 2012

Salaries, wages and benefits $109,336 $100,339Contract services 73,651 58,004Amortization 49,708 28,997 Materials and supplies 263,991 294,695Land Rent 298,943 296,342Total expense $795,629 $778,377

8. STATEMENT OF CASH FLOWS

A statement of cash flows has not been prepared as it is not considered to provide any additional informa-tion.


Notes to the Financial Statements - continuedFOR THE YEAR ENDED DECEMBER 31, 2013

DUN

CAN

- N

ORT

H C

OW

ICH

AN JO

INT

UTIL

ITIE

S BO

ARD

Sche

dule

s to

the

Cons

olid

ated

Fin

ancia

l Sta

tem

ents

FO

R TH

E YE

AR E

ND

ED D

ECEM

BER

31, 2

013

TAN

GIB

LE C

APITA

L AS

SETS

SCH

EDUL

E I

COST

ACCU

MUL

ATED

AM

ORT

IZAT

ION

NET

BO

OK

VALU

EBa

lanc

e D

ecem

ber

31,

2012

2013

Ad

ditio

ns20

13

Dis

posa

ls

Bala

nce

Dec

embe

r 31

, 20

13

Bala

nce

Dec

embe

r 31

, 20

1220

13

Addi

tions

2013

D

ispo

sals

Bala

nce

Dec

embe

r 31

, 20

1320

1220

13

Engi

neer

ing

Stru

ctur

es $

2,48

5,49

0 -

-

$2,

485,

490

$28

,998

$

49,7

10

- $

78,7

08

$2,

456,

492

$2,

406,

782


The Corporation of the District of North CowichanSTATISTICAL INFORMATIONFOR THE YEAR ENDED DECEMBER 31, 2013

[UNAUDITED]



Statistical InformationFIVE-YEAR STATISTICAL REVIEW 2009-2013





TAXABLE ASSESSMENTS OF LAND AND IMPROVEMENTS 2009-2013(IN THOUSANDS)

Property Class 2009 2010 2011 2012 2013

Residential $3,747,541 $3,754,510 $3,952,085 $3,940,355 $3,855,900

Utilities 4,753 4,804 4,966 5,008 5,053

Major Industry 152,018 145,926 140,001 139,792 138,177

Light Industry 53,992 61,648 59,294 55,841 57,710

Business 213,242 258,689 285,121 304,847 330,410

Managed Forest 1,847 2,021 1,842 1,730 2,206

Recreation 13,765 13,775 13,071 12,410 12,872

Farm 8,047 8,028 8,119 8,324 8,414

$4,195,205 $4,249,401 $4,464,499 $4,468,307 $4,410,742

88%

0%

3% 1%8%

0%0% 0%

Assessment by Property Class

Residential

Utilities

Major Industry

Light Industry

Business

Managed Forest

Recreation

Farm



TAX REVENUE BY PROPERTY CLASS 2009-2013

Property Class 2009 2010 2011 2012 2013

Residential $8,029,480 $9,441,758 $11,278,037 $15,048,039 $15,773,792

Utilities 116,299 133,040 145,100 153,043 158,711

Major Industry 6,589,982 6,089,982 6,329,325 3,604,805 3,743,516

Light Industry 821,062 952,633 1,051,981 959,972 1,037,669

Business 1,723,699 2,105,616 2,390,129 2,628,819 2,902,512

Managed Forest 45,559 56,185 47,319 29,734 40,770

Recreation 29,498 32,146 37,305 36,879 47,310

Farm 90,278 74,347 58,042 31,801 32,916

$17,445,857 $18,885,707 $21,337,238 $22,493,092 $23,737,196

Collection Rate 70% 74% 93% 94% 95%

67%1%

16%

4%

12%

0% 0% 0%

2013 Tax Revenue by Property Class

Residential

Utilities

Major Industry

Light Industry

Business

Managed Forest

Recreation

Farm






SOURCES OF REVENUE 2009-2013

2009 2010 2011 2012 2013General Taxation $17,445,856 $18,885,707 $21,337,238 $22,493,092 $23,737,196

Other Taxation 4,373,979 4,716,621 5,126,499 5,403,951 5,419,862

Sales of Services 8,061,405 7,850,498 8,655,047 8,896,641 10,147,745

Other Revenue from Own Source 937,002 1,217,893 1,068,696 1,041,398 1,029,313

Gain on Sale - 581,944 2,510 15,726 16,664

Return on Investment 1,521,025 1,209,059 515,044 497,351 518,519

Grants 4,037,985 3,583,390 4,274,832 2,589,619 8,106,819

Developer & Other 3,087,164 3,485,061 8,208,308 2,173,267 1,713,654

Transfer from Cemetery trust 10,122 3,245 4,839 4,000 4,378$39,474,538 $41,533,418 $49,193,013 $43,115,045 $50,694,150

Source: North Cowichan Finance Department

47%

11%

20%

2%0%

1%16%

3%

0%

2013 Sources of Revenue

General Taxation

Other Taxation

Sales of Services

Other Revenue from Own Source

Gain on Sale

Return on Investment

Grants

Developer & Other

Transfer from Cemetery trust

8%

20%

23%

3%0%4%

3%

23%

9%

7%

0%

2013 ExpensesGeneral Government

Protective Services

Transportation

Garbage and Recycling

Cemetery

Forestry

Development Services

Parks, Recreation & Culture

Water Services

Sewer Services

Loss on Sale

EXPENSES BY FUNCTION 2009-2013

2009 2010 2011 2012 2013

General Government $3,295,338 $3,058,750 $2,939,517 $3,033,567 $3,314,041

Protective Services 6,985,546 7,171,748 7,604,723 7,454,153 7,822,699

Transportation 9,244,407 8,901,986 9,048,272 9,130,683 8,939,568

Garbage and Recycling 1,106,949 1,191,522 1,122,537 1,491,797 1,306,716

Cemetery 153,007 160,619 173,891 127,699 139,066

Forestry 1,062,675 1,191,351 1,323,529 1,214,269 1,459,565

Development Services 738,330 742,159 863,639 928,357 1,032,004

Parks, Recreation & Culture 8,242,444 8,156,023 8,825,029 8,731,752 9,251,441

Water Services 2,475,041 2,941,810 3,041,508 3,329,515 3,431,267

Sewer Services 2,424,352 2,909,598 2,843,884 3,173,897 2,866,499

Loss on Sale 105,304 6,996 127,385 224,134 5,775

$35,833,393 $36,432,562 $37,913,914 $38,839,823 $39,568,641







EXPENSES BY OBJECT 2009-2013

2009 2010 2011 2012 2013

Salaries, wages and benefits $11,801,046 $12,316,155 $13,415,581 $14,410,936 $14,841,611

Contract services 10,878,591 10,899,271 11,434,673 10,488,458 11,448,715

Amortization 6,886,261 7,120,674 7,487,622 7,825,301 8,174,811

Materials and supplies 5,873,638 5,359,211 5,674,503 4,764,748 4,506,996

Interest 1,350,041 1,426,913 1,470,697 1,126,246 590,733

Other -956,185 -689,662 -1,569,162 224,134 5,775

$35,833,392 $36,432,562 $37,913,914 $38,839,823 $39,568,641


38%

29%

21%

11%

1% 0%

2013 Expenses by Object

Salaries, wages andbenefits

Contract services

Amortization

Materials and supplies

Interest

Other$220,000,000

$225,000,000

$230,000,000

$235,000,000

$240,000,000

$245,000,000

$250,000,000

$255,000,000

$260,000,000

$265,000,000

$270,000,000

2009 2010 2011 2012 2013

Accumulated Surplus

Surplus

ACCUMULATED SURPLUS

2009 2010 2011 2012 2013

Accumulated Surplus $235,308,816 $240,409,672 $251,688,771 $255,963,993 $267,089,502

Annual Surplus $3,641,145 $5,100,856 $11,279,099 $4,275,222 $11,125,509







NET FINANCIAL ASSETS

2009 2010 2011 2012 2013

Net Financial Assets $7,057,461 $6,426,947 $6,660,325 $7,481,296 $6,929,511


$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

2009 2010 2011 2012 2013

Net Financial Assets

Net Financial Assets $0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

2009 2010 2011 2012 2013

Reserve Fund BalancesDCC Restricted Reserves

Land Sales

Machinery and Equipment

Local Area Service

Forest

Park Development

Parkland Purchase

Chemainus Parking

Gravel Pits

Maple Bay Sewer

Oceanfront

Agriculture

New Works or Extensions

New Works Pollution

Self-Insurance

Climate Action and Energy Plan

RESERVE FUND BALANCES2009 2010 2011 2012 2013

DCC Restricted Reserves $8,066,620 $7,128,016 $6,543,479 $7,195,898 $6,765,155

Land Sales 3,742,470 3,515,852 2,331,708 1,499,182 820,481

New Works or Extensions 984,530 796,968 806,528 0 0

New Works Pollution 151,170 152,926 155,520 0 0

Machinery and Equipment 1,975,953 1,882,624 1,779,890 1,371,486 1,968,575

Local Area Service 810,336 803,482 729,242 846,899 1,039,722

Forest 1,148,739 943,249 807,139 825,324 1,148,454

Park Development 207,570 182,202 185,292 187,797 190,499

Parkland Purchase 796,920 877,758 756,651 603,298 352,891

Chemainus Parking 141,849 158,759 160,402 142,102 145,695

Agriculture 0 0 0 0 10,000

Gravel Pits 325,764 344,437 357,043 366,010 384,897

Self-Insurance 0 0 0 111,698 113,306

Climate Action and Energy Plan 0 0 0 18,700 136,969

Maple Bay Sewer 0 150,445 152,998 155,066 157,297

Oceanfront 0 80,755 82,125 83,235 0

$18,351,921 $17,017,473 $14,848,017 $13,406,695 $13,233,941







DEBENTURE DEBT

2009 2010 2011 2012 2013Debenture Debt $22,375,955 $22,990,272 $21,971,921 $21,503,802 $22,272,673

Debt per Capita 759 771 763 734 761


LIABILITY SERVICING

2009 2010 2011 2012 2013Liability Servicing Limit $8,049,144 $8,359,564 $9,027,106 $9,398,637 $10,270,490Total Liability Servicing Cost 4,945,570 2,320,821 2,760,466 2,609,840 2,856,862Liability Servicing Capacity Available $3,103,574 $6,038,743 $6,266,640 $6,788,797 $7,413,628


TAXES COLLECTED FOR OTHER AGENCIES

2009 2010 2011 2012 2013

School $11,623,880 $11,990,562 $12,057,995 $12,155,133 $12,400,567

CVRHD 973,386 1,218,527 1,575,368 1,900,740 2,388,779

CVRD 4,604,784 4,982,589 5,550,043 6,036,143 6,462,047

BC Assessment 376,079 392,807 389,030 381,558 385,024

MFA 1,004 1,028 1,076 1,082 1,077

$17,579,133 $18,585,513 $19,573,512 $20,474,656 $21,637,494


$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

2009 2010 2011 2012 2013

Capital Expenditures by Source of Funding

Developer / Other Contribution

Sales / Trade

Grants

Debt

DCC

Reserve Funds

Operating Funds

CAPITAL EXPENDITURES AND SOURCES OF FINANCING

2009 2010 2011 2012 2013

Operating Funds $3,564,628 $3,405,084 $4,582,019 $4,256,479 $7,511,079

Reserve Funds 2,569,549 2,829,997 2,253,520 3,156,986 1,224,538

DCC 575,922 1,709,481 1,074,972 - 977,600

Debt - 1,750,000 551,500 745,475 2,500,000

Grants 1,785,130 2,487,159 3,049,194 1,275,731 7,034,261

Sales / Trade 7,000 2,765 - - -

Developer / Other Contribution 1,954,264 1,491,450 7,133,337 2,173,267 835,729

$10,456,493 $13,675,936 $18,644,542 $11,607,938 $20,083,207


74 | Municipality of North Cowichan



NEW CONSTRUCTION2009 2010 2011 2012 2013

Building Permits Issued 404 395 262 296 251Construction Value $33,732,982 $57,975,216 $41,480,281 $44,012,722 $41,849,005


TOTAL POPULATION2009 2010 2011 2012 2013

Total population estimates 29,493 29,837 29,298 29,294 29,277% Change from prior year 1% 1% -2% -0% -0%

Source: BC Stats

2011 POPULATION BY AGE GROUP - Median age of population 47.1 years

2006 POPULATION AGED 25-65 HIGHEST EDUCATION LEVEL

Source: Statistics Canada Census

- 500

1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000

Population by Age Group

Male

Female

Total

14%

30%

16%

21%

5% 14%

Highest EducationNo certificate, diploma or degree

High school certificate or equivalent

Trades certificate, apprentice

College / non-university certificate

2013 TOP 10 PRINCIPAL CORPORATE TAXPAYERS

Taxpayer Industry Tax Contribution

Catalyst Paper Corporation Industry $3,400,850

Western Forest Products Inc. Industry 580,452

Calloway Reit (Cowichan) Inc. Retail 506,224

Riocan Holdings Retail 418,515

Cowichan Town Centre Market Inc. Retail 195,071

Alpine-Pacific Leasing Ltd Retail 130,739

Island Timberlands GP Ltd Industry 109,883

Peter Baljet Chevrolet Buick GMC Ltd Retail 80,360

Shell Canada Limited Business 78,290

Centra Gas British Columbia Inc. Utility 74,322

Total Tax Contribution from Top 10 Taxpayers $5,574,706

Total Municipal Tax $23,737,196

Proportion of municipal tax paid by top ten 23%



Statistical Information


The Corporation of the District of North CowichanOTHER INFORMATIONFOR THE YEAR ENDED DECEMBER 31, 2013



Permissive Tax Exemptions Amount of Municipal Property Taxes that would have been imposed if no tax exemption in dollars.

ROLL # PROPERTY ADDRESS OWNER OR OCCUPANT TAXES

24001-000 3790 GIBBINS RD 744 (COWICHAN) SQUADRON ADMIN SOCIETY $867

12143-000 1597 JOAN AVE ANGLICAN SYNOD DIOCESE OF BC (ALL SAINTS ANGLICAN CHURCH) 237

15117-000 VICTORIA RD ANGLICAN SYNOD DIOCESE OF BC (ST. MICHAEL’S AND ALL ANGELS’ ANGLICAN CHURCH) 1,233

16124-000 2852/2858 MILL ST ANGLICAN SYNOD DIOCESE OF BC (ST. MICHAEL’S AND ALL ANGELS’ ANGLICAN CHURCH) 1,096

362-000 5795 CHURCH RD ANGLICAN SYNOD DIOCESE OF BC (ST. PETER’S ANGLICAN CHURCH) 9,759

1-000 5800 CHURCH RD ANGLICAN SYNOD DIOCESE OF BC (ST. PETER’S ANGLICAN CHURCH) 2,023

01881-000 3441 GIBBINS RD BC CORPORATION OF SEVENTH-DAY ADVENTIST CHURCH (DUNCAN) 1,426

05469-001 2892 DRINKWATER RD. BC FOREST DISCOVERY CENTRE 2,960

05977-000 DRINKWATER RD BC FOREST DISCOVERY CENTRE 965

05105-060 7550 BELL MCKINNON RD BC S.P.C.A.. 4,090

1608-000 2085 MAPLE BAY RD BISHOP OF VICTORIA (QUEEN OF ANGELS SCHOOL) 11,897

16108-100 9727 AND 9745 ELM ST BISHOP OF VICTORIA (ST. JOSEPH’S ELEMENTARY SCHOOL) 4,498

08630-001 WATER LICENCE 106188 CAMP QWANOES 3

08630-002 WATER LICENCE 108939 CAMP QWANOES 3

08633-000 1148 SMITH RD CAMP QWANOES 4,733

08633-001 1 - 1148 SMITH RD CAMP QWANOES 157

08076-000 PID 009-625-399 CAMP QWANOES 2,602

16487-000 3318 RIVER RD CANADIAN BAPTISTS OF WESTERN CANADA (CALVARY BAP-TIST CHURCH) 4,651

15642-005 9796 WILLOW ST CHEMAINUS CHAMBER OF COMMERCE 705

15642-000 9796 WILLOW ST CHEMAINUS FESTIVAL OF MURALS SOCIETY 1,624

15152-100 9867 MAPLE ST CHEMAINUS HEALTH CARE AUXILIARY 5,696

15148-010 9906 ESPLANADE ST CHEMAINUS HEALTH CARE FOUNDATION 2,369

15148-005 9910 ESPLANADE ST CHEMAINUS HEALTH CARE HOUSING SOCIETY 9,618

15004-005 RIFLE RANGE CHEMAINUS ROD & GUN CLUB 267

15798-101 9758 CHEMAINUS RD CHEMAINUS ROTARY CLUB 432

15656-000 9824 WILLOW ST CHEMAINUS SENIORS DROP-IN CENTRE SOCIETY 6,219

15103-001 9745 CHEMAINUS RD CHEMAINUS THEATRE FESTIVAL SOCIETY 869

15105-100 9737 CHEMAINUS RD CHEMAINUS THEATRE FESTIVAL SOCIETY 25,081

15086-200 9574 BARE POINT RD CHEMAINUS THEATRE FESTIVAL SOCIETY 16,520

15054-115 9799 WATERWHEEL CRES CHEMAINUS VALLEY HISTORICAL SOCIETY 384

01038-001 BEVERLY ST CHESTERFIELD SPORTS SOCIETY 1,029

01038-002 5847 CHESTERFIELD AVE CHESTERFIELD SPORTS SOCIETY 2,387

06503-000 6118 LANE RD CHRISTIAN SCIENCE SOCIETY, DUNCAN 1,606


05359-005 6124 RYALL RD CLEMENTS CENTRE SOCIETY 1,600

05359-006 6124 RYALL RD CLEMENTS CENTRE SOCIETY 3,372

01791-020 5855 CLEMENTS ST COWICHAN AGRICULTURAL SOCIETY & FARMERS INSTITUTE 2,514

05099-000 7380 TRANS CANADA HWY COWICHAN EXHIBITION 37,791

08548-000 1860 HERD RD COWICHAN RUGBY CLUB 3,433

01587-000 5856 CLEMENTS ST COWICHAN VALLEY ASSOCIATION FOR COMMUNITY LIVING 11,729

01082-000 5810 GARDEN ST COWICHAN VALLEY BASKET SOCIETY 1,095

02310-000 3036 SHERMAN RD COWICHAN VALLEY CHURCH OF THE NAZARENE 1,598

01920-000 5860 BANKS RD COWICHAN VALLEY HOSPICE SOCIETY 942

15040-002 2876 FULLER LAKE RD COWICHAN VALLEY MINOR HOCKEY CLUB 72

05999-000 3253 SHERMAN RD COWICHAN VALLEY SOCCER ASSN. 3,005

05567-000 6137 SOMENOS RD COWICHAN VALLEY SOCCER ASSN. 1,104

05033-000 MT. PREVOST COWICHAN WAR MEMORIAL TRUSTEES 80

08338-000 8104 MUSGRAVE ST CROFTON COMMUNITY CENTRE SOCIETY 3,558

08333-020 MORGAN ST CROFTON COMMUNITY CENTRE SOCIETY 2,129

12395-000 1675 ROBERT ST CROFTON COMMUNITY CENTRE SOCIETY 1,251

08333-100 8003 YORK AVE CROFTON COMMUNITY CENTRE SOCIETY 2,718

12316-010 1507 JOAN AVE CROFTON OLD SCHOOL MUSEUM 1,023

12316-011 1507 JOAN AVE CROFTON SENIORS SOCIETY 4,107

00205-100 495 BEECH AVE DUNCAN CHRISTIAN SCHOOL 3,052

01918-000 5781 CHESTERFIELD ST DUNCAN CHRISTIAN SCHOOL 2,289

947-000 2246 AND 2244 MOOSE RD DUNCAN COMMUNITY LODGE SOCIETY (LOYAL ORDER OF THE MOOSE) 9,671

06000-000 3191 SHERMAN RD DUNCAN CURLING CLUB 5,856

6474-000 2359 CALAIS RD FRANCISCAN POOR CLARE NUNS (ST. CLARE’S MONASTERY) 5,130

6355-000 WICKS RD FRANCISCAN POOR CLARE NUNS (ST. CLARE’S MONASTERY) 3,868

02246-005 2731 BOYS RD FRESHWATER FISHERIES SOCIETY OF B.C. 622

8314-000 6722 BEAUMONT AVE FRIENDS OF COWICHAN CADETS SOCIETY 1,178

16273-000 9877 ESPLANADE ST HARBOUR VIEW HOUSING SOCIETY 8,026

15791-000 2828 PINE ST HARBOUR VIEW HOUSING SOCIETY 4,555

172-001 RAIL CORRIDOR ISLAND CORRIDOR FOUNDATION 810
















Permissive Tax Exemptions - continuedAmount of Municipal Property Taxes that would have been imposed if no tax exemption in dollars.




1232-011 RAIL CORRIDOR ISLAND CORRIDOR FOUNDATION 1,040





















3995-022 RAIL CORRIDOR. ISLAND CORRIDOR FOUNDATION 371






1640-005 5990 INDIAN RD MAPLE BAY ROWING CLUB 1,732

8328-000 6735 BEAUMONT AVE MAPLE BAY ROWING CLUB 1,544

8595-001 1241 MAPLE BAY RD NATURE CONSERVANCY OF CANADA 2,009

8597-000 AITKEN RD NATURE CONSERVANCY OF CANADA 2,148

8595-000 MAPLE BAY RD NATURE CONSERVANCY OF CANADA 7,426

3931-010 COWICHAN BAY NATURE TRUST OF B.C. 54

5084-000 TRANS CANADA HWY NATURE TRUST OF B.C. 1,890




200-000 6045 TRANS CANADA HWY NATURE TRUST OF B.C. & DUCKS UNLIMITED 1,080

476-000 1839 TZOUHALEM RD NEW LIFE COMMUNITY BAPTIST CHURCH 4,712

12266-200 TSUSSIE RD PENELUKUT DEVELOPMENT SOCIETY 44

15592-000 9471 CHEMAINUS RD PENTECOSTAL ASSEMBLIES (CHEMAINUS TABERNACLE) 315

2217-000 ARBUTUS AVE QUEEN MARGARET’S SCHOOL 3,123

999-000 660 BROWNSEY AVE QUEEN MARGARET’S SCHOOL 9,218

880-000 660 BROWNSEY AVE QUEEN MARGARET’S SCHOOL 7,151

955-000 1031 GOVERNMENT ST QUEEN MARGARET’S SCHOOL 4,037

15736-000 9775 CHEMAINUS RD ROYAL CANADIAN LEGION (CHEMAINUS LEGION) 2,805

830-000 3210 SHERMAN RD SIKH TEMPLE, DUNCAN 8,358

16-001 1843 TZOUHALEM RD SISTERS OF ST. ANN (PROVIDENCE FARM) 1,351

5373-000 3248 COWICHAN VALLEY HWY SOMENOS COMMUNITY ASSOCIATION 2,661

433-000 2004 AND 2030 CRESCENT RD ST. PETER’S CRESCENT SOCIETY 1,617

977-000 5814 BANKS RD STEINER EDUCATIONAL SOCIETY (ISLAND OAK HIGH SCHOOL) 1,961

477-000 1815 TZOUHALEM RD THE CHURCH OF JESUS CHRIST OF LATTER-DAY SAINTS 3,008

15646-000 9814 WILLOW ST THE TRUSTEES OF THE CHEMAINUS/CROFTON PASTORAL CHARGE (CHEMAINUS UNITED CHURCH) 502

1572-001 2704 JAMES ST TRINITY EVANGELICAL LUTHERAN CHURCH 880

2227-000 3968 GIBBINS RD VIMY COMMUNITY CLUB 1,371

24017-000 2558 MT SICKER RD WESTHOLME SCHOOL SOCIETY 1,782

Total $386,568



Chemainus Off-Street Parking

Report prepared as required under section 906 (9) of the Local Government Act

January 1, 2013 $142,102

Interest 1,593

Current Year Contributions 2,000

Current Year Expenditures 0

December 31, 2013 $145,695

Report prepared as required under section 937.01 of the Local Government Act

Jan. 1, 2013 Interest Current Year Contributions

Current Year Expenditures Dec. 31, 2013

ROADS $812,691 $13,291 $228,331 $(581,600) $472,713

PARKS 2,787 163 27,641 30,591

CHEMAINUS

WATER 245,020 3,892 36,357 285,269

SEWER 80,910 1,253 8,851 91,014

325,930 5,145 45,208 0 376,283

CROFTON

WATER 101,843 1,475 1,132 0 104,450

SEWER 45,828 672 1,158 47,658

147,671 2,146 2,290 0 152,1098

SOUTH END

DRAINAGE 21,070 409 11,660 0 33,139

WATER 1,574,024 22,968 37,695 (396,000) 1,238,687

SEWER 4,311,725 62,828 87,081 4,461,634

5,906,819 86,205 136,436 (396,000) 5,733,460

TOTAL $7,195,898 $106,951 $439,906 $(977,600) $6,765,155

Development Cost Charges Waived under Section 933.1(2) in 2013

ROADS WATER SEWER TOTAL

CROFTON 1533 Joan Ave. $31,445 $9,830 $5,032 $46,307

SOUTH END 2728 James St. 36,948 9,861 46,809

TOTAL $68,393 $9,830 $14,893 $93,116


Development Cost Charges

84 | Municipality of North Cowichan


Declaration of Disqualification from Office

NIL REPORTNo application has been made for any Council or former Council member to be disquailified from office under section 111 of the Community Charter.

Mark O. Ruttan

Director of Administration

May 27, 2014


7030 Trans-Canada Highway | Box 278Duncan, British Columbia, CanadaPhone 250.746.3100Fax 250.746.3133Email [email protected]

Visit us online www.northcowichan.caor scan to visit our homepage

Annual Report 2013 - North Cowichan€¦ · annual report. 2013. for the year ended december 31,...

Documents

Transcript of Annual Report 2013 - North Cowichan€¦ · annual report. 2013. for the year ended december 31,...