Town of View Royal Annual Report 2012

Table of Contents

• Community Profile ... 3
• Message from the Mayor ... 5
• Mayor & Council ... 6
• Organizational Chart ... 8
• Mission, Vision & Values ... 9
• Summary of Services & Operations ... 11
• Municipal Highlights ... 12
• 2012 Municipal Goals & Objectives ... 14
• Ensuring Financial Sustainability ... 15
• Responding To Increasing Expectations ... 17
• Building Community Identity ... 19
• Critical Projects & Initiatives ... 21
• Looking Ahead: 2013-2014 ... 22
• Financial Information ... 25

Community Profile

View Royal is divided into eight distinct precincts based on such factors as topography, major transportation corridors, natural environment and the age of housing stock. These precincts are:

• Craigflower
• Harbour
• Helmcken
• Hospital
• Thetis
• Burnside
• Atkins
• Wilfert

The municipality encompasses McKenzie, Pike, Prior and Thetis Lakes and portions of Esquimalt Harbour and Portage Inlet and is situated adjacent to the established jurisdictions of the Township of Esquimalt, the District of Saanich and the City of Colwood.

A gateway between Victoria's urban core and the growing West Shore municipalities, View Royal is a vibrant community. This year's Annual Report outlines the Town of View Royal's achievements and major projects for 2012. It shows the progress on our 2012 municipal goals and objectives, highlights financial reporting, and gives insight into plans for 2013-2014.

• INCORPORATED DECEMBER 5, 1988
• 9,380 POPULATION
• 2,499 HECTARES LAND AREA
• 28 KM BIKE LANES
• 25 KM TRAILS
• $21.3M BUILDING PERMITS
• 68 MUNICIPAL PARKS & 732 HECTARES PARKLAND
• 264 BUSINESS LICENSES

MESSAGE FROM THE MAYOR

VIEW ROYAL: A TOWN OF VISION & VALUES

On behalf of View Royal Council and staff, I am pleased to share this year's Annual Report, which outlines our key objectives and accomplishments for 2012.

Residents can be proud that View Royal is a town of vision and values. It is a green and pleasant place that, in the search for a desirable place to live, has become one of the preferred municipalities in the Region.

Goals have been reached and much has been accomplished in 2012 for View Royal. Projects were completed that make the statement that this is a thriving, safe community. The combined efforts of Council and staff, volunteers, neighbours, institutions and the Region have made ours a town that invites investment and the comparative value of property investments was protected in 2012.

In 2012, we received community approval to build a new Public Safety Building, approved the new Craigflower Bridge design, established Dock Guidelines and made progress in replacing our out of date Land Use Bylaw. We worked on and enhanced our parks, including the gifted Welland Legacy Park, planted scenic medians and added cycle lanes, sidewalks and turning lanes.

I hope you will take a moment to review our achievements for 2012, and learn more about our efforts towards achieving a community that is livable, green, and sustainable.

View Royal is committed to staying faithful to our values, setting innovative standards and continuing to build and sustain our town as the best place to live and call home.

Graham Hill Mayor

MAYOR & COUNCIL

The Mayor and Council of the Town of View Royal were elected for a three-year term in the municipal election held in November 2011. Each member is appointed to Town and regional committees.

Mayor Graham Hill (December 2, 2002 - present)

• Finance & Administration - Chair
• CRD Board/Committee of the Whole
• CRD Hospital Board
• CRD Core Area Liquid Waste Management
• CRD Finance & Corporate Services
• CRD Planning, Transportation & Protective Services
• Greater Victoria Harbour Authority
• Island Corridor Foundation
• Te'Mexw Treaty Advisory Committee
• Tourism Victoria
• Municipal Insurance Association
• Victoria Chamber of Commerce

Councillor Ron Mattson (December 6, 2011 - present)

• Public Works & Transportation - Chair
• Parents Advisory Committee
• Victoria Family Court & Youth Justice Committee

Councillor Heidi Rast (December 2, 2008 - present)

• Protective Services & Community Services - Chair
• Capital Region Emergency Service Telecommunications (CREST)
• Community Policing
• Joint School District/Municipal Committee
• Police Building Liaison Committee
• West Shore Parks & Recreation Society

Councillor John Rogers (December 2, 1996 - present)

• Planning & Development - Chair
• CRD Climate Action Steering Committee
• CRD Housing Trust Fund Commission
• Chilco Trails Plan Steering Committee
• CRD Water Supply Commission
• Esquimalt Harbour Advisory Committee
• Friends of Cole Island
• Island Corridor Foundation
• Juan de Fuca Water Distribution Commission
• CRD Harbours Environmental Action Program Cost-Sharing Sub-Committee

Councillor David Screech (December 2, 2002 - present)

• Parks, Recreation & Environment - Chair
• CRD Arts Committee
• Greater Victoria Public Library
• Millstream Site Remediation Sub-Committee
• View Royal Reading Centre
• Westshore Chamber of Commerce
• West Shore Parks & Recreation Society

2012 Town of View Royal Organizational Chart

LIVABLE VIEW ROYAL:

simply the best place to call home.

MISSION - WHY WE EXIST

Building a resilient, vibrant community that fosters and balances social, environmental and economic well-being.

VISION - THE FUTURE WE STRIVE TO CREATE

Livable View Royal – simply the best place to call home.

VALUES - OUR GUIDEPOSTS

The Town of View Royal pursues good community through a corporate culture that is:

• Accountable,
• Respectful,
• Ethical,
• Collaborative,
• Innovative,
• Proactive,
• Efficient, and
• Effective.

COMMITMENT TO ORGANIZATIONAL EXCELLENCE

The Town of View Royal is committed to providing the best possible local government for our residents and business community. This commitment drives constant improvement, with particular emphasis on:

• providing strong, strategic policy-based governance,
• demonstrating collaborative leadership and effective shared decision-making within the community, with our regional partners, including First Nations,
• nurturing productive working relationships at the legislative and executive level,
• pursuing excellence founded on core values, approved plans, policies and our commitment to innovation,
• decision-making processes to be transparent and responsive,
• integrating strategic planning, business planning, budgeting and performance management systems,
• embracing evidence-based best practices for professionalism,
• enhancing customer service and related communications capacity, and
• positioning sustainability as the foundation of our municipal culture.

SUMMARY OF SERVICES & OPERATIONS

The TOWN OF VIEW ROYAL is responsible for the provision of a wide variety of local services and programs. These include:

• Transportation network (e.g. roads, bridges, street cleaning, sidewalks)*
• Stormwater management
• Garbage/household food waste collection
• Sanitary sewer collection system
• Parks, recreation and cultural facilities
• West Shore Royal Canadian Mounted Police (RCMP)
• Fire protection and inspection
• Emergency preparedness planning
• Land use planning
• Building permits
• Business licensing
• Bylaw establishment and enforcement
• Economic development
• Heritage and revitalization

*excludes Admirals Road, Six Mile Road and the Trans Canada Highway (Highway 1) which are controlled by the Ministry of Transportation & Infrastructure.

Town Services provided by OTHER organizations include:

• School system (Provincial Government and Local School Boards)
• Social and health programs (Provincial Government)
• Hospital care system (Provincial Government)
• Real property assessments (B.C. Assessment)
• Library collection and distribution system (Greater Victoria Public Library; Town is a part owner of the Downtown Branch)
• View Royal Reading Centre (Town provides partial support through a grant-in-aid)
• Planning and the management of public transit (Victoria Regional Transit System)

Town Services provided by the CAPITAL REGIONAL DISTRICT:

• Animal control
• Sewer system management
• Water management
• Recycling

The Town is represented on the following BOARDS AND COMMITTEES, which provide a variety of services to the residents of View Royal:

• Capital Regional District
• Capital Regional District Hospital
• Capital Regional District Housing Trust Fund Commission
• West Shore Parks & Recreation Society
• Greater Victoria Public Library
• Community Policing

2012 MUNICIPAL HIGHLIGHTS

PRIVATE DOCK DEVELOPMENT GUIDELINES APPROVED

The Town of View Royal approved its Private Dock Development Guidelines for new dock applications on December 4, 2012. The approved Guidelines are a result of more than a year-long process initiated by Council and their desire to have a set of guidelines by which to evaluate new dock applications.

Development of the Guidelines included a Public Consultation Plan. This Plan included two Public Advisory Groups, two Public Open Houses, consultation with DND staff, and general public correspondence and discussion. The Private Dock Development Guidelines will be used by the Town to evaluate new dock applications alongside the existing Environmental Development Permit guidelines identified within the Official Community Plan. The guidelines will also be used by the public and by the development community in establishing expectations for applications to be put forward to the Town.

CRAIGFLOWER BRIDGE REPLACEMENT PROJECT FINAL DESIGN

The final design concept for the replacement of the Craigflower Bridge and the upgrade of Admirals Road from the Island Highway to Gorge Road was approved by the Councils of both View Royal and Saanich.

Project consultants were asked to develop three concepts for a new bridge. When presented to the community, people liked different aspects of each concept design: the steel trusses from the first, the curving sidewalk from the second and the railings from the third. As a result, the team incorporated each of the preferred features into the final design.

Planned upgrades will include the replacement of the 80 year old Craigflower Bridge, construction of new sidewalks, bike lanes, safety features and road surface on Admirals Road, improvements to street lighting, installation of stormwater treatment facilities and rain gardens, boulevard landscaping and improvements, a refurbished traffic signal at the intersection of Admirals Road and Gorge Road West and replacement of the sanitary sewer, storm drain and water mains on Admirals Road.

NEW PUBLIC SAFETY BUILDING GETS THE GO AHEAD

Since 1944, View Royal Fire Rescue has provided emergency services in View Royal. After review of the current Fire Station (built in 1957), reports concluded that the structure lacks several amenities to make it functional as an emergency services building. Aside from the most pronounced deficiency - lack of seismic stability - the building was never designed to house career fire fighters, or serve as an administrative base and Emergency Operations Centre.

On November 14, 2012, View Royal residents cast their votes in favour of Public Safety Building Loan Authorization Bylaw No. 839, 2012 to authorize the Town of View Royal to borrow the required funds towards the construction of a new Public Safety Building. The new sustainable and efficient facility will be purpose built with a vision to the future needs of the community to ensure View Royal maintains its diverse emergency response capacity well into the 21st century.

NEW PARK IN VIEW ROYAL

Longtime resident Rex Welland gifted the Town of View Royal with a legacy – a park of 0.282 hectares located at the end of Stancil Lane. The Town owns the property while The Land Conservancy (TLC) holds a covenant that will ensure this land is permanently protected as park land. The Town is very appreciative of this generous donation and will work to ensure Mr. Welland’s legacy remains a well-cared for community amenity for years to come.

HIGHLIGHTS AT A GLANCE

• 264 business licenses issued in 2012 (95 commercial).
• Construction value of building permits issued in 2012 totaled $21,334,744.
• Hiring of a Director of Engineering Services, Director of Finance and Auxiliary Corporate Services Clerk to replace vacancies.
• Launched new methods for residents to stay connected with the Town including email notifications and social media sites (Twitter and Facebook).
• View Royal Archives joined the online community HistoryPin to share images with community members and other historical associations throughout the Capital Regional District.
• An Ecological Restoration Plan was developed to help restore the sensitive Garry Oak ecosystem in Portage Park.
• Town of View Royal, BC Heritage Branch and District of Saanich began work on the development of a Conservation Plan for the Craigflower Manor and Schoolhouse.

2012 MUNICIPAL GOALS & OBJECTIVES

The 2012 - 2014 Strategic Plan provides a regular opportunity to step back, look at the bigger picture and identify a few key areas or opportunities that require special attention or emphasis in the three to five years ahead. Three Strategic Priorities have been identified for 2012 to 2014:

• Ensuring FINANCIAL SUSTAINABILITY,
• Responding to INCREASING EXPECTATIONS, and
• Building COMMUNITY IDENTITY.

The reality and importance of ongoing work related to the core and fiduciary responsibilities of the Town – work that requires significant investment of time and dollars over and above the flow of regular duties - is also identified:

• CRITICAL PROJECTS AND INITIATIVES.

ENSURING FINANCIAL SUSTAINABILITY

STRATEGIC PRIORITY:

• Systematically consider ongoing and related costs as major decisions are made and/or projects are approved;
• Position View Royal as a development-friendly Town, committed to development opportunities identified in the OCP and efficient approval processes;
• Ongoing commitment to providing full value for money;
• Nurture entrepreneurial approach to revenue generation; and
• Be a strong voice at the regional level to ensure that affordability is a major factor in cost-shared initiatives.

DESIRED OUTCOMES:

• Confidence in the fiscal health and financial sustainability of the Town of View Royal;
• Diversified revenue base;
• Predictable property tax and user fee increases; and
• Optimized corporate efficiencies.

2012 INITIATIVES:

RESPONDING TO INCREASING EXPECTATIONS

STRATEGIC PRIORITY:

• Develop an innovation culture that regularly generates suggestions for service improvement;
• Communicate service levels, standards and related costs for each municipal function;
• Commit to a business model that aligns both services and support functions with the defined levels of service;
• Manage implications of governance processes and decisions within the capacity of available resources.

DESIRED OUTCOMES:

• A clear service model defining level of service and resource requirements for each municipal function;
• Community satisfaction within the parameters established in the service model;
• High public confidence in municipal governance.

2012 INITIATIVES:

BUILDING COMMUNITY IDENTITY

STRATEGIC PRIORITY:

• Look for opportunities to expand residential and business volunteerism;
• Support community-driven events that bring View Royal residents together;
• Commit to on-going development of parks and trails;
• Build alliances with community service organizations;
• On-going commitment to recognize our heritage.

DESIRED OUTCOMES:

• Build alliances with community service organizations;
• Strong identity - a unique Town with its own character and common purpose;
• Clearly defined, well services neighbourhoods with local service nodes and gathering places;
• Increased community connectivity and engagement in community events;
• A strong and growing volunteer corps, investing in View Royal.

2012 INITIATIVES:

CRITICAL PROJECTS & INITIATIVES

STRATEGIC PRIORITY:

The final strategic priority addresses projects that will consume significant financial and staff resources. Each are priorities on their own merits, reflecting:

• Commitments made in Council-approved plans and reports;
• Projects that are already underway;
• Legislated or regulatory requirements;
• Fiduciary obligations of Town Council to provide for social, environmental and economic well-being of the community.

2012 INITIATIVES:

LOOKING AHEAD: 2013 - 2014

Three Strategic Priorities have been identified for 2013 - 2014. The foundation bar at the bottom recognizes the reality and importance of ongoing work related to the core and fiduciary responsibilities of the Town; work that requires significant investment of time and dollars over and above the flow of regular duties.

ENSURING FINANCIAL SUSTAINABILITY: the next years will require strategic focus on financial sustainability.

RESPONDING TO INCREASING EXPECTATIONS: the Town will be challenged to respond to and manage these increasing expectations and financial sustainability simultaneously.

BUILDING COMMUNITY IDENTITY: we have made a great deal of progress on the physical, urban landscape front; the next three years provides an opportunity to strengthen our social sense of what it means to live in View Royal.

CRITICAL PROJECTS AND INITIATIVES: the Town must deliver on initiatives designed to meet legislated or regulatory requirements, projects already underway, and commitments made to the community in approved plans and reports.

FINANCIAL INFORMATION

Fiscal Year Ended December 31, 2012

Financial Information

Table of Contents

Statement of Financial Information Approval ... 29

Consolidated Financial Statements ... 30

• Managements Responsibility for the Consolidated Financial Statements ... 32
• Independent Auditors’ Report ... 33
• Consolidated Statement of Financial Position ... 34
• Consolidated Statement of Operations ... 35
• Consolidated Statement of Change in Net Financial Assets ... 36
• Consolidated Statement of Cash Flows ... 37
• Notes to the Consolidated Financial Statements ... 38

Schedule of Payments for Goods and Services ... 61 Statement of Remuneration and Expenses ... 63 Statement of Guarantee and Indemnity Agreements ... 64 Statement of Severance Agreements ... 65 Statement of Permissive Tax Exemptions ... 66 Statement of Development Cost Charges ... 67 5 Year Assessment and Property Tax Information ... 68 Long Term Debt and Capital Lease Obligations ... 70 Principal Taxpayers ... 71 Strategic Community Investment Funds Plan and Progress Report ... 72

Statement of Financial Information Approval

For the year ended December 31, 2012

The undersigned, as authorized by the Financial Information Regulation, Schedule 1, subsection 9(2), approves all the statements and schedules included in this Statement of Financial Information, produced under the Financial Information Act.

Jeannie Beauchamp, CGA Director of Finance July 16, 2013

Graham Hill, Mayor On behalf of Council, July 16, 2013

Prepared pursuant to the Financial Information Regulation, Schedule 1, section 9

Consolidated Financial Statements of TOWN OF VIEW ROYAL

Year ended December 31, 2012

Financial Statements

• Management's Responsibility for the Consolidated Financial Statements
• Independent Auditors' Report
• Consolidated Statement of Financial Position
• Consolidated Statement of Operations
• Consolidated Statement of Change in Net Financial Assets
• Consolidated Statement of Cash Flows
• Notes to Consolidated Financial Statements

MANAGEMENT'S RESPONSIBILITY FOR THE CONSOLIDATED FINANCIAL STATEMENTS

The accompanying consolidated financial statements of the Town of View Royal (the "Town") are the responsibility of Town's management and have been prepared in compliance with legislation, and in accordance with Canadian public sector accounting standards for local governments as recommended by the Public Sector Accounting Board of The Canadian Institute of Chartered Accountants. A summary of the significant accounting policies are described in the notes to the consolidated financial statements. The preparation of financial statements necessarily involves the use of estimates based on management's judgment, particularly when transactions affecting the current accounting period cannot be finalized with certainty until future periods.

The Town's management maintains a system of internal controls designed to provide reasonable assurance that assets are safeguarded, transactions are properly authorized and recorded in compliance with legislative and regulatory requirements, and reliable financial information is available on a timely basis for preparation of the consolidated financial statements. These systems are monitored and evaluated by management.

Mayor and Council meet with management and the external auditors to review the consolidated financial statements and discuss any significant financial reporting or internal control matters prior to their approval of the consolidated financial statements.

The consolidated financial statements have been audited by KPMG LLP, independent external auditors appointed by the Town. The accompanying Independent Auditors' Report outlines their responsibilities, the scope of their examination and their opinion on the Town's consolidated financial statements. Their opinion is based upon an examination conducted in accordance with Canadian generally accepted auditing standards, performing such test 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 Town in accordance with Canadian public sector accounting standards.

Chief Administrative Officer

J Beauchamp Director of Finance

INDEPENDENT AUDITORS' REPORT

To the Mayor and Councillors of Town of View Royal

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

Management's Responsibility for the Consolidated Financial Statements

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

Auditors' Responsibility

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

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

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

Opinion

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

Chartered Accountants Victoria, Canada

TOWN OF VIEW ROYAL

Consolidated Statement of Financial Position

December 31, 2012, with comparative information for 2011

Approved by: J. Beauchamp, CGA Director of Finance

TOWN OF VIEW ROYAL

Consolidated Statement of Operations

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

TOWN OF VIEW ROYAL

Consolidated Statement of Change in Net Financial Assets

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

TOWN OF VIEW ROYAL

Consolidated Statement of Cash Flows

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

TOWN OF VIEW ROYAL

Notes to Consolidated Financial Statements

Year ended December 31, 2012

1. Significant accounting policies:

The consolidated financial statements of the Town are prepared by management in accordance with Canadian public sector accounting principles for governments as recommended by the Public Sector Accounting Board (“PSAB”) of the Canadian Institute of Chartered Accountants.

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

7. Tangible capital assets:

(a) Assets under construction: Assets under construction totaling $1,154,605 (2011 - $168,949) have not been amortized. Amortization of these assets will commence when the asset is put into service.

(b) Contributed tangible capital assets: Contributed tangible capital assets have been recognized at fair market value at the date of contribution. The value of contributed capital assets received during the year is $6,000 (2011 - $8,356,280).

(e) Write-down of tangible capital assets: The write-down of tangible capital assets during the year was $37,070 (2011 - $nil).

8. Accumulated surplus:

Accumulated surplus consists of individual fund surplus and reserve funds as follows:

9. Net taxes available for municipal purposes:

13. Segmented information:

Schedule of Payments Made for the Provision of Goods and Services (Unaudited)

Year ended December 31, 2012

Grants and Contributions Exceeding $25,000

• VIEW ROYAL FIREFIGHTERS ASSOCIATION $46,985
• SHORELINE COMMUNITY SCHOOL ASSOCIATION 30,000
• VIEW ROYAL READING CENTRE 25,000
• Total aggregate grants and contributions exceeding $25,000 $101,985
• Consolidated total of grants and contributions of $25,000 or less 43,775
• Consolidated total of all grants and contributions exceeding $25,000 $145,760
• Total per Statement of Revenue and Expenditure 12,650,552
• Variance -$78,399*

Statement of Remuneration and Expenses (Unaudited)

Year ended December 31, 2012

Elected Officials

Employees

Statement of Permissive Tax Exemptions (Unaudited)

Year ended December 31, 2012

Statement of Development Cost Charges (DCC)

Year ended December 31, 2012

Statistical Information (Unaudited)

Principal Corporate Taxpayers (Unaudited)

Strategic Community Investment Funds Plan and Progress Report

(1) SCI Funds received or anticipated

(2) SCI Funds intended use, performance targets and progress made:

Small Community or Regional District Portion of the SCI Funds

Traffic Fine Revenue Sharing Portion of the SCI Funds

Report Date: June 26, 2013