Annual Report for Year Ended December 31, 2023 (Financial Notes and Statistical Information)
Excerpts from the 2023 Annual Report including notes to consolidated financial statements, schedules of remuneration for elected officials and employees, and municipal tax statistics.
Town of View Royal - Notes to Consolidated Financial Statements
Year ended December 31, 2023
1. Significant accounting policies (continued)
n) Financial instruments
The Town recognizes its financial instruments when the Town becomes party to the contractual provisions of the financial instrument. All financial instruments are initially recorded at their fair value.
At initial recognition, the Town may irrevocably elect to subsequently measure any financial instrument at fair value. The Town has not made such an election during the year.
The Town subsequently measures investments in equity instruments quoted in an active market and all derivative instruments, except those that are linked to, and must be settled by delivery of, unquoted equity instruments of another entity, at fair value. Fair value is determined by published price quotations. Transactions to purchase or sell these items are recorded on the trade date. Net gains and losses arising from changes in fair value are recognized in the statement of remeasurement gains and losses. The Town has not presented a statement of remeasurement gains and losses as it does not have any items giving rise to remeasurement gains (losses). Interest income is recognized in the statement of operations. Investments in equity instruments not quoted in an active market and derivatives that are linked to, and must be settled by delivery of, unquoted equity instruments of another entity, are subsequently measured at cost. With the exception of those instruments designated at fair value, all other financial assets and liabilities are subsequently measured at amortized cost using the effective interest rate method.
Transaction costs directly attributable to the origination, acquisition, issuance or assumption of financial instruments subsequently measured at fair value are immediately recognized in operating annual surplus. Conversely, transaction costs are added to the carrying amount for those financial instruments subsequently measured at cost or amortized cost.
2. Financial instruments
The Town’s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, deposits, and long-term 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 Town is not exposed to significant interest or credit risks arising from these financial instruments.
3. Cash and cash equivalents
| 2023 | 2022 | |
|---|---|---|
| Bank deposits | $ 36,585,698 | $ 25,315,336 |
| Municipal Finance Authority - Money Market | 1,029,469 | 979,922 |
| Municipal Finance Authority - Ultra Short Bond | 2,154,955 | 2,056,123 |
| Municipal Finance Authority - Short-Term Bond | 9,377,560 | 8,902,130 |
| Total | $ 49,147,682 | $ 37,253,511 |
Cash and cash equivalents consist of short-term investments in the MFA money market, ultra short-term, and short-term bond funds and pooled high-interest savings. The market value is equal to the carrying value. Temporary investments have yields ranging from 4.007% to 5.440%.
Included in cash and cash equivalents are the following restricted amounts:
| 2023 | 2022 | |
|---|---|---|
| Restricted cash - West Shore reserve funds (Note 10) | $ 361,178 | $ 359,475 |
| Restricted investments - reserve funds (Note 10) | 16,982,584 | 10,461,749 |
| Restricted investments - development cost charges (Note 6) | 9,466,742 | 6,222,401 |
| Total | $ 26,810,504 | $ 17,043,625 |
The Town has an operating line of credit with the Toronto Dominion Bank for an authorized amount of $1,000,000, bearing interest at bank prime rate less 0.50% per annum. At December 31, 2023 the balance outstanding was $nil (2022 - $nil).
4. Accounts Receivable
| 2023 | 2022 | |
|---|---|---|
| Government of Canada | $ 338,440 | $ 288,910 |
| Province of British Columbia | 1,087,263 | 1,143,299 |
| Regional and local governments | 8,939 | 5,727 |
| Deposits | 2,500 | 2,500 |
| Other trade receivables | 538,816 | 477,917 |
| Total | $ 1,975,958 | $ 1,918,353 |
5. Accounts payable and accrued liabilities
| 2023 | 2022 | |
|---|---|---|
| Government of Canada | $ 534,658 | $ 734,423 |
| Province of British Columbia | 612,368 | 659,872 |
| Regional and local governments | 712,894 | 773,195 |
| Payroll liabilities | 285,212 | 422,232 |
| Other trade payables | 2,899,873 | 1,930,929 |
| Total | $ 5,045,005 | $ 4,520,651 |
6. Deferred revenue
| Development cost charges | 2023 | 2022 |
|---|---|---|
| Beginning balance | $ 6,222,401 | $ 5,232,629 |
| Received during the year | 3,076,019 | 1,130,464 |
| Interest earned | 393,408 | 42,475 |
| Recognized as revenue | (225,086) | (183,167) |
| Ending balance | 9,466,742 | 6,222,401 |
| Deferred revenue - other | 1,479,527 | 1,079,560 |
| Total deferred revenue | $ 10,946,269 | $ 7,301,961 |
7. Long-term debt
a) Debt outstanding
| Issue # | Matures | Rate | Original Amount | Net debt 2023 | Net debt 2022 |
|---|---|---|---|---|---|
| 117 | Oct. 12, 2026 | 3.25% | $ 2,445,000 | $ 607,469 | $ 796,420 |
| 127 | Apr. 7, 2034 | 3.30% | 5,490,000 | 3,538,915 | 3,791,231 |
| Total | $ 7,935,000 | $ 4,146,384 | $ 4,587,651 |
b) Debenture debt
The loan agreements with the Capital Regional District and the MFA provide that if, at any time, the scheduled payments provided for in the agreements are not sufficient to meet the MFA’s obligations in respect of such borrowings, the resulting deficiency becomes a liability of the Town.
The Town issues its debt instruments through the MFA. Debt is issued on a sinking fund basis, where the MFA invests the Town’s sinking fund principal payments so that the payments, plus investment income, will equal the original outstanding debt amount at the end of the repayment period. Actuarial adjustments on debt represent the repayment and/or forgiveness of debt by the MFA using surplus investment income generated by the principal repayments.
Principal payments on long term debt for the next five years are as follows:
| Year | Amount |
|---|---|
| 2024 | $ 315,615 |
| 2025 | 333,073 |
| 2026 | 333,073 |
| 2027 | 201,822 |
| 2028 | 201,822 |
| Thereafter | 2,760,979 |
| Total | $ 4,146,384 |
c) Interest expense
Total interest expense during the year was $217,112 (2022 - $217,112).
8. Employee benefit and retirement obligations
Employee benefit obligations represent accrued benefits as follows:
| 2023 | 2022 | |
|---|---|---|
| Accrued vacation | $ 20,507 | $ 15,018 |
| Accrued overtime | 113,233 | 110,803 |
| Accrued sick leave | 134,900 | 126,900 |
| West Shore employee future benefit obligations | 40,944 | 40,419 |
| Total | $ 309,584 | $ 293,140 |
Accrued vacation is the amount of unused vacation entitlement carried forward into the next year. Accrued sick leave is the estimated liability for sick leave for all employees. Sick leave entitlements can only be used while employed by the Town and are not paid out upon retirement or termination of employment. The accrued sick leave actuarial valuation was estimated as at December 31, 2023.
Information about liabilities for accrued sick leave is as follows:
| 2023 | 2022 | |
|---|---|---|
| Accrued benefit obligation, beginning of year | $ 116,400 | $ 127,500 |
| Adjustment to benefit obligation | - | - |
| Current service cost | 8,300 | 10,300 |
| Interest cost | 5,400 | 3,300 |
| Benefits paid | (5,100) | (3,900) |
| Amortization of actuarial (gain) | (1,800) | (20,800) |
| Accrued benefit obligation, end of year | 123,200 | 116,400 |
| Unamortized gain | 11,700 | 10,500 |
| Accrued benefit liability, end of year | $ 134,900 | $ 126,900 |
The accrued benefit liability is included as part of employee benefit obligations on the Consolidated Statement of Financial Position. The actuarial gain is amortized over a period equal to the employees’ average remaining service lifetime of 11 years.
The significant actuarial assumptions adopted in measuring the Town’s accrued benefit obligations are as follows:
| 2023 | 2022 | |
|---|---|---|
| Discount rates | 4.10% | 4.40% |
| Expected future inflation rates | 3.50% | 2.50% |
| Expected wage and salary increase | 0.00% - 2.20% | 2.58% - 4.50% |
Municipal Pension Plan
The Town and its employees contribute to the Municipal Pension Plan (a jointly trusteed pension plan). The board of trustees, representing plan members and employers, is responsible for administering the plan, including investment of assets and administration of benefits. The plan is a multi-employer defined benefit pension plan. Basic pension benefits provided are based on a formula. As at December 31, 2022, the plan has about 240,000 active members and approximately 124,000 retired members. Active members include approximately 43,000 contributors from local governments.
Every three years, an actuarial valuation is performed to assess the financial position of the plan and adequacy of plan funding. The actuary determines an appropriate combined employer and member contribution rate to fund the plan. The actuary’s calculated contribution rate is based on the entry-age normal cost method, which produces the long-term rate of member and employer contributions sufficient to provide benefits for average future entrants to the plan. This rate may be adjusted for the amortization of any actuarial funding surplus and will be adjusted for the amortization of any unfunded actuarial liability.
The most recent actuarial valuation for the Municipal Pension Plan as at December 31, 2021, indicated a $3,761 million funding surplus for basic pension benefits on a going concern basis.
The Town paid $328,989 (2022 - $291,454) for employer contributions while Town employees contributed $284,205 (2022 - $252,474) to the plan in fiscal 2023.
The next valuation will be as at December 31, 2024 with results available in 2025.
Employers participating in the plan record their pension expense as the amount of employer contributions made during the fiscal year (defined contribution pension plan accounting). This is because the plan records accrued liabilities and accrued assets for the plan in aggregate, resulting in no consistent and reliable basis for allocating the obligation, assets and cost to the individual employers participating in the plan.
9. Tangible capital assets
a) Assets under construction and completed assets not yet in service
Assets under construction totaling $1,524,386 (2022 - $863,753) 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 $nil (2022 - $466,779).
c) Gain or loss on disposal of tangible capital assets
During the year, the Town recognized a net loss of $29,388 on disposal of tangible capital assets (2022 - $5,473,983 loss). This amount is included as gain (loss) of revenue on the Consolidated Statement of Operations.
10. Accumulated surplus
Accumulated surplus consists of individual fund surplus and reserve funds as follows:
| Surplus | 2023 | 2022 |
|---|---|---|
| Equity in tangible capital assets | $ 118,108,469 | $ 118,306,465 |
| Appropriated surplus - casino revenue | 4,751,391 | 4,606,192 |
| Appropriated surplus - Community Works Fund (Note 11) | 2,350,232 | 2,750,248 |
| Appropriated surplus - other | 605,797 | 506,660 |
| Unrestricted accumulated surplus | 7,043,418 | 5,855,751 |
| 132,859,307 | 132,025,316 | |
| Capital Renewal | 1,162,286 | 907,642 |
| Capital Works and Land Acquisition | 1,412,971 | 1,342,857 |
| Community Amenity Contributions | 1,623,239 | 662,178 |
| Fire Department Equipment | 159,125 | 140,090 |
| Future Operating Expenditures | 1,244,334 | 1,084,103 |
| Growing Communities (Note 12) | 4,879,515 | - |
| Machinery and Equipment Depreciation | 288,161 | 371,043 |
| Parks and Open Space | 1,505,786 | 1,431,067 |
| Parks Improvements | 612,952 | 490,136 |
| Police Equipment, Property and Contract | 365,896 | 353,126 |
| Police Operation and Maintenance | 2,218,321 | 2,009,760 |
| Sewer System Capital | 1,509,998 | 1,669,747 |
| West Shore Parks and Recreation Society reserves | 361,178 | 359,475 |
| 17,343,762 | 10,821,224 | |
| Total Accumulated Surplus | $ 150,203,069 | $ 142,846,540 |
11. Community Works Fund
Community Works Fund is a component of the Gas Tax Agreement funding provided by the Government of Canada and administered through the Union of British Columbia Municipalities (UBCM). Community Works Fund transfers are recorded as revenue when received, then held as reserves until spent on eligible expenditures.
| 2023 | 2022 | |
|---|---|---|
| Community Works Fund, beginning balance | $ 2,750,248 | $ 2,349,862 |
| Amounts received during the year | 538,584 | 515,956 |
| Interest earned | 142,003 | 15,609 |
| Amounts allocated to projects during the year | (1,080,603) | (131,179) |
| Ending Balance | $ 2,350,232 | $ 2,750,248 |
12. Growing Communities Fund: Reserve Funds
The Province of British Columbia distributed conditional Growing Communities Fund (GCF) grants to communities at the end of March 2023 to help local governments build community infrastructure and amenities to meet the demands of population growth. The GCF provided a one-time total of $1 billion in grants to all 161 municipalities and 27 regional districts in British Columbia.
The Town of View Royal received $4,665,000 of GCF funding in March 2023.
| Growing Communities Fund | 2023 | 2022 |
|---|---|---|
| Balance, beginning of year | $ - | $ - |
| Amounts received during the year | 4,665,000 | - |
| Interest earned | 214,515 | - |
| Eligible costs | - | - |
| Balance, end of year | $ 4,879,515 | $ - |
13. Taxes for municipal purposes
The Town is required to collect taxes on behalf of and transfer these amounts to the government agencies noted below. Taxes levied over or under the amounts requisitioned are recorded as accounts payable or receivable.
| Taxes | 2023 | 2022 |
|---|---|---|
| Property tax | $ 19,731,648 | $ 17,919,952 |
| Grants in lieu of taxes | 70,637 | 58,658 |
| 1% Utility tax | 144,523 | 136,471 |
| 19,946,808 | 18,115,081 | |
| Less taxes levied for other authorities | ||
| School authorities | 5,664,395 | 5,209,663 |
| Capital Regional District | 1,118,508 | 1,047,093 |
| Capital Regional Hospital District | 625,382 | 623,069 |
| British Columbia Assessment Authority | 174,825 | 162,546 |
| British Columbia Transit | 1,054,249 | 868,394 |
| Municipal Finance Authority | 1,000 | 889 |
| 8,638,359 | 7,911,654 | |
| Taxes for municipal purposes | $ 11,308,449 | $ 10,203,427 |
14. Gaming revenue
The Town has an agreement with the Province whereby 10% of the net gaming revenue from community casinos is to be paid to local governments. The Town also has a casino revenue sharing agreement with neighbouring municipalities whereby 55% of the revenue received from the Province in respect of the gaming facility situated within the Town is to be disbursed to these governments. This disbursement is netted against the gaming revenue in the consolidated financial statements for the Town as disclosed below.
| 2023 | 2022 | |
|---|---|---|
| Gaming revenue | ||
| Amounts received during the year | $ 4,360,712 | $ 4,456,891 |
| Disbursements to partner municipalities | (2,398,392) | (2,451,290) |
| Net gaming revenue | $ 1,962,320 | $ 2,005,601 |
15. Government grants and transfers
| 2023 | 2022 | |
|---|---|---|
| Conditional transfers | ||
| Federal | $ 545,624 | $ 558,823 |
| Provincial | 6,811,962 | 2,185,770 |
| Other agencies | 162,441 | 57,940 |
| 7,520,027 | 2,802,533 | |
| Unconditional transfers | ||
| Small communities protection | 344,000 | 449,000 |
| Traffic fine revenue sharing | 79,000 | 57,475 |
| 423,000 | 506,475 | |
| Total government grants and transfers | $ 7,943,027 | $ 3,309,008 |
16. Commitments and contingencies
a) The Capital Regional District ("CRD") debt, under provisions of the Local Government Act, is a direct, joint and several liability of the CRD and each member municipality within the CRD, including the Town.
b) The Town is a shareholder and member of the Capital Region Emergency Service Telecommunications Incorporated ("CREST") which provides centralized emergency communications, and related public safety information services to municipalities, regional districts, the provincial and federal governments and their agencies, and emergency service organizations throughout the Greater Victoria region and the Gulf Islands. Members’ obligations to share in funding ongoing operations and any additional costs relating to capital assets are to be contributed pursuant to a Members’ Agreement.
c) The Town is a defendant in various lawsuits. Whether claims are in progress or have yet to be initiated, the Town records an accrual in respect of legal claims that are likely to be successful and for which an amount is reasonably determinable.
d) Under borrowing arrangements with the MFA, the Town is required to lodge security by means of demand notes and interest bearing cash deposits based on the amount of the borrowing. As a condition of these borrowings, a portion of the debenture proceeds is withheld by the MFA as a debt reserve fund. These deposits are held by the MFA as security against the possibility of debt repayment default. If the debt is repaid without default, the deposits are refunded to the Town. At December 31, 2023 there were contingent demand notes of $204,201 (2022 - $204,201) and a contingent deposit of $102,782 (2022 - $99,684).
e) The Town entered into a long term contract with the Federal Government and the Royal Canadian Mounted Police for the provision of police services. Under the terms of this contract, the Town is responsible for 70% of policing costs, which in 2024 are estimated to be $2,582,284 (2023 actual $2,245,166). In addition, the most recent collective agreement between the Government of Canada and the National Police Federation expired in 2023. A timeline for a new contract to be negotiated is currently unknown. The result of the new agreement will be a retroactive pay increase for RCMP members and reservists. The Town's estimated share of the retroactive pay increase for 2023 is $37,847.
f) The Town has purchase orders in the amount of $169,754 open as at December 31, 2023 which have not been recorded. These amounts have been taken into account in the budget and will be recorded in the period the goods and services to which they relate are received.
g) On October 27, 2022 the Town of View Royal awarded a contract to Safetek Fire Apparatus of Abbotsford, BC in the amount of $975,221 USD, excluding taxes for the purpose of replacing one heavy rescue fire apparatus. Delivery of the fire truck is expected to occur in 2025.
17. Contaminated site
The Town owns one property not in productive use with levels of contamination exceeding current environmental standards. Testing of the contamination in 2003 found no known threats to human health or safety. The property is surrounded by the ocean and undeveloped crown-owned land with no current development applications. The property and surrounding crown-owned land were historically occupied by a plywood mill. Due to uncertainty regarding the future development of the surrounding property, the Town is unable to reasonably estimate what, if any, loss of future economic benefits will occur. As such no liability has been recorded in the consolidated financial statements for the year ending December 31, 2023.
18. Financial plan
The financial plan amounts presented throughout these consolidated financial statements are audited and represent the five year financial plan bylaw (Bylaw No. 1113) approved by Council on May 2, 2023 consolidated with the proportional share of the budgeted operating revenue and expense of West Shore Parks and Recreation Society. The summary below reconciles the 2023 consolidated financial plan to the Consolidated Statement of Operations.
| Consolidated financial plan, 2023 surplus (deficit) | $ - |
| Add: | |
| Capital expenditures | 6,697,093 |
| Transfers to reserves | 6,392,000 |
| Transfers to surplus | 2,474,420 |
| Principal payments on debt | 315,615 |
| Less: | |
| Transfers from equity in capital assets | (3,200,270) |
| Transfers from reserves for operating | (221,600) |
| Transfers from reserves for capital | (1,709,043) |
| Transfers from surplus for operating | (1,749,011) |
| Transfers from surplus for capital | (4,039,695) |
| Financial plan annual surplus (deficit) | $ 4,959,509 |
19. West Shore Parks and Recreation Society
a) Capital asset transfer
The lands and facilities comprising the Juan de Fuca Recreation Centre are owned by the member municipalities (the “Municipalities”) in their proportionate share, as specified in the Co-Owners’ Agreement. The Town became party to the agreement effective January 1, 2007. Future improvements are allocated among the partners as per the cost sharing formula in effect each year for each service or facility, as outlined in a Members’ Agreement. For 2023, the Town’s share of improvements purchased by the Society on its behalf is $256,813 (2022 - $85,556).
Because the cost sharing formula in the Members’ Agreement produces different cost shares for the members from year to year, there is a gain (loss) on the opening fund balances. In 2023, the Town recorded a loss of ($227,220) (2022 - loss of $396,724).
The participating Municipalities have each become members in the Society, which was incorporated to provide parks, recreation and community services to the Municipalities under contract. Under terms of an Operating, Maintenance and Management Agreement, the Society is responsible to equip, maintain, manage and operate the facilities located at the recreation centre.
b) Consolidation
Financial results and budget for the Society are consolidated into the Town’s financial statements proportionately, based on the cost sharing formula outlined in the Members’ Agreement. In 2023, the Town’s proportion for consolidation purposes was 13.210% (2022 - 13.685%). Condensed financial information for the Society is as follows:
| 2023 | 2022 | |
|---|---|---|
| Financial assets | $ 5,775,508 | $ 5,425,730 |
| Financial liabilities | 3,555,603 | 3,297,679 |
| Net financial assets | 2,219,905 | 2,128,051 |
| Non-financial assets | 1,673,134 | 1,153,172 |
| Accumulated surplus | 3,893,039 | 3,281,223 |
| Revenues | 9,659,065 | 7,316,425 |
| Requisition for members | 5,816,429 | 5,879,262 |
| 15,475,494 | 13,195,687 | |
| Expenses | 14,863,678 | 12,400,469 |
| Annual surplus (deficit) | $ 611,816 | $ 795,218 |
20. Segmented information
The Town is a diversified municipal organization that provides a wide range of services to its citizens. Town services are provided by departments and their activities reported separately. Certain functions have been separately disclosed in the segmented information, along with the services they provide, are as follows:
a) General government services
The general government operations provide the functions of corporate administration, finance, human resources and legislative services and any other functions categorized as non-departmental.
b) Protective services
Protective Services includes the View Royal Fire Rescue which is a composite fire department responsible to provide fire suppression service, fire inspections of public buildings, and training and education of volunteer firefighters as well as the citizens of View Royal. In addition, it also includes policing provided by the RCMP, emergency planning, animal control and the maintenance and enforcement of building and construction bylaws as well as all other municipal bylaws. Fire protection services are provided to the Songhees and Esquimalt First Nation communities under contract.
c) Transportation services
Transportation services comprises a wide variety of services such as the annual maintenance of all municipally owned roads and bridges, sidewalks, street signage, boulevards, bus shelters, street lighting and traffic signals. Transportation also includes the design, inspection, and maintenance of the storm drain collection systems.
d) Environmental health services
Environmental health services includes solid waste collection and disposal as well as collection and disposal of liquid waste through the sanitary sewer service.
e) Development services
Development services include all land use, planning, and zoning issues in the Town.
f) Recreation and cultural services
Recreation and culture includes maintenance and development of all parks and green spaces within the Town as well as the Town's financial contribution to the services provided by the Greater Victoria Public Library and the Town’s portion of West Shore Parks and Recreation Society.
g) Consolidated schedules of segmented disclosure by service
Schedules 1 and 2 provide additional financial information for the foregoing functions. Certain allocation methodologies have been employed in the preparation of the segmented financial information. Taxation is apportioned based on budgeted taxation revenue as presented in the consolidated financial plan.
21. Comparative figures
Certain comparative figures have been restated to conform with the current year's presentation.
Schedule 1 - Town of View Royal
Consolidated Schedule of Segment Disclosure by Service
Year ended December 31, 2023
| General Government Services | Protective Services | Transportation Services | Environmental Health Services | Development Services | Recreation and Cultural Services | 2023 Actual | 2023 Budget (Note 18) | |
|---|---|---|---|---|---|---|---|---|
| Revenue | ||||||||
| Taxation for municipal purposes | $ 2,343,439 | $ 4,253,851 | $ 2,871,975 | $ - | $ 402,008 | $ 1,437,176 | $ 11,308,449 | $ 11,318,193 |
| User charges and sales of services | 10,732 | 480,170 | 94,022 | 3,063,964 | 474,552 | 1,007,528 | 5,130,968 | 4,829,587 |
| Investment income | 1,325,588 | 135,177 | 144,592 | 133,628 | 50,711 | 103,992 | 1,893,688 | 115,000 |
| Actuarial adjustments on debt | - | 134,316 | - | - | - | - | 134,316 | - |
| Penalties and fines | 74,846 | 14,676 | - | - | - | - | 89,522 | 76,000 |
| Development charges earned | - | - | 199,710 | 3,648 | - | 21,728 | 225,086 | 722,345 |
| Contributions from developers and others | 3,000 | - | - | - | 910,350 | - | 913,350 | 1,018,000 |
| Other revenue from own sources | 111,821 | 57,725 | 103,275 | 2,432 | - | 116,184 | 391,437 | 307,580 |
| Government grants and transfers | 5,516,280 | 492,545 | 610,392 | - | 121,024 | 1,202,786 | 7,943,027 | 8,237,209 |
| Gain (loss) on sale of tangible capital assets (Note 9) | (539) | (21,233) | (7,616) | - | - | - | (29,388) | - |
| Total revenue | 9,385,167 | 5,547,227 | 4,016,350 | 3,203,672 | 1,958,645 | 3,889,394 | 28,000,455 | 26,623,914 |
| Expense | ||||||||
| Labour and benefits | 1,692,725 | 2,170,870 | 634,082 | 58,478 | 477,263 | 1,624,705 | 6,658,123 | 6,607,304 |
| Goods and services | 1,120,851 | 3,148,363 | 2,211,275 | 2,330,250 | 49,917 | 1,516,381 | 10,377,037 | 11,616,890 |
| Amortization | 81,738 | 417,953 | 1,951,453 | 297,919 | - | 415,371 | 3,164,434 | 3,223,099 |
| Change in proportionate share of West Shore Parks and Recreation Society | - | - | - | - | - | 227,220 | 227,220 | - |
| Debt interest | - | 217,112 | - | - | - | - | 217,112 | 217,112 |
| Total expense | 2,895,314 | 5,954,298 | 4,796,810 | 2,686,647 | 527,180 | 3,783,677 | 20,643,926 | 21,664,405 |
| Surplus (deficit) | $ 6,489,853 | $ (407,071) | $ (780,460) | $ 517,025 | $ 1,431,465 | $ 105,717 | $ 7,356,529 | $ 4,959,509 |
Schedule 2 - Town of View Royal
Consolidated Schedule of Segment Disclosure by Service
Year ended December 31, 2022
| General Government Services | Protective Services | Transportation Services | Environmental Health Services | Development Services | Recreation and Cultural Services | 2022 Actual | 2022 Budget | |
|---|---|---|---|---|---|---|---|---|
| Revenue | ||||||||
| Taxation for municipal purposes | $ 2,591,520 | $ 3,859,268 | $ 2,826,264 | $ - | $ 361,799 | $ 564,576 | $ 10,203,427 | $ 10,208,319 |
| User charges and sales of services | 13,949 | 448,633 | 62,173 | 2,960,595 | 676,315 | 885,955 | 5,047,620 | 4,646,625 |
| Investment income | 302,966 | 12,638 | 15,005 | 13,347 | 7,623 | 10,388 | 361,967 | 115,000 |
| Actuarial adjustments on debt | - | 118,083 | - | - | - | - | 118,083 | - |
| Penalties and fines | 91,351 | 18,010 | - | - | - | - | 109,361 | 60,000 |
| Development charges earned | - | - | 63,910 | 119,257 | - | - | 183,167 | 591,503 |
| Contributions from developers and others | 688 | - | 466,779 | - | 560,700 | 5,312 | 1,033,479 | - |
| Other revenue from own sources | 92,986 | 40,866 | 168,928 | - | - | 72,359 | 375,139 | 258,470 |
| Government grants and transfers | 906,103 | 367,008 | 451,572 | - | 304,687 | 1,279,638 | 3,309,008 | 2,881,953 |
| Gain (loss) on sale of tangible capital assets (Note 9) | (5,473,983) | - | - | - | - | - | (5,473,983) | - |
| Total revenue | (1,474,420) | 4,864,506 | 4,054,631 | 3,093,199 | 1,911,124 | 2,818,228 | 15,267,268 | 18,761,870 |
| Expense | ||||||||
| Labour and benefits | 1,507,418 | 2,064,417 | 622,035 | 49,260 | 420,844 | 1,539,455 | 6,203,429 | 6,016,900 |
| Goods and services | 1,249,975 | 2,374,205 | 1,872,091 | 2,211,554 | 141,097 | 1,420,637 | 9,269,559 | 11,131,319 |
| Amortization | 69,926 | 409,890 | 1,988,948 | 283,368 | - | 398,913 | 3,151,045 | 3,164,347 |
| Change in proportionate share of West Shore Parks and Recreation Society | - | - | - | - | - | 396,723 | 396,723 | - |
| Debt interest | - | 217,112 | - | - | - | - | 217,112 | 217,112 |
| Total expense | 2,827,319 | 5,065,624 | 4,483,074 | 2,544,182 | 561,941 | 3,755,728 | 19,237,868 | 20,529,678 |
| Surplus (deficit) | $ (4,301,739) | $ (201,118) | $ (428,443) | $ 549,017 | $ 1,349,183 | $ (937,500) | $ (3,970,600) | $ (1,767,808) |
Schedule 3 - Town of View Royal
Consolidated Schedule of Tangible Capital Assets
Year ended December 31, 2023
| Land | Land Improvements | Buildings | Vehicles, Machinery & Equipment | Roads | Drainage | Sewer | Work in Progress | West Shore | 2023 | 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost | |||||||||||
| Balance, beginning | $ 43,479,637 | $ 6,185,784 | $ 10,557,602 | $ 8,788,144 | $ 63,193,559 | $ 22,798,348 | $ 12,729,762 | $ 863,753 | $ 10,020,679 | $ 178,617,268 | $ 184,180,110 |
| Additions | - | 363,057 | 254,370 | 892,954 | 137,933 | 27,267 | 94,497 | 1,102,839 | 349,603 | 3,222,520 | 1,634,003 |
| Disposals or write-downs | - | - | - | (134,890) | (61,354) | - | - | - | (347,813) | (544,057) | (7,174,413) |
| Completed during year | - | - | - | - | - | - | - | (442,206) | - | (442,206) | (22,427) |
| Balance, ending | 43,479,637 | 6,548,841 | 10,811,972 | 9,546,208 | 63,270,138 | 22,825,615 | 12,824,259 | 1,524,386 | 10,022,469 | 180,853,525 | 178,617,273 |
| Accumulated amortization | |||||||||||
| Balance, beginning | - | 3,200,710 | 3,391,007 | 4,827,712 | 31,515,652 | 5,698,514 | 3,677,732 | - | 3,474,364 | 55,785,691 | 53,015,486 |
| Current year amortization | - | 266,643 | 214,177 | 484,682 | 1,578,850 | 266,910 | 135,979 | - | 217,113 | 3,164,434 | 3,151,045 |
| On disposals or write-downs | - | - | - | (128,668) | (30,988) | - | - | - | (120,593) | (280,249) | (380,835) |
| Balance, ending | - | 3,467,353 | 3,605,184 | 5,183,726 | 33,063,514 | 5,965,424 | 3,813,711 | - | 3,570,964 | 58,669,876 | 55,785,696 |
| Net book value | $ 43,479,637 | $ 3,081,488 | $ 7,206,788 | $ 4,362,482 | $ 30,206,624 | $ 16,860,191 | $ 9,010,548 | $ 1,524,386 | $ 6,451,505 | $ 122,183,649 | $ 122,831,577 |
Town of View Royal
Schedule of Payments Made for the Provision of Goods and Services
As at December 31, 2023 (Unaudited)
| Supplier Name | Amount Paid |
|---|---|
| 1279224 B.C. Ltd | $ 54,572 |
| Associated Fire & Safety | 42,597 |
| BC Hydro | 306,583 |
| BICC Professionals Inc. | 61,740 |
| Bunt & Associates | 34,351 |
| Capital Regional District - Accounts Receivable | 1,520,288 |
| Capital Regional District Water Department | 97,090 |
| Centralsquare Canada Software Inc. | 42,596 |
| City of Langford | 396,598 |
| City of Surrey | 83,556 |
| Colquitz Engineering Ltd. | 44,961 |
| Corporation of The Township of Esquimalt | 98,196 |
| CRD Bylaw Enforcement & Animal Control | 41,710 |
| CREST | 65,148 |
| Don Mann Excavating Ltd. | 275,137 |
| E.H. Emery Electric Ltd. | 70,900 |
| E.S. Williams & Associates Inc. | 232,060 |
| Enex Fuels Ltd. | 31,267 |
| G. & E. Contracting LP | 492,482 |
| Greater Victoria Public Library | 597,084 |
| Harbour Door Services Ltd. | 32,730 |
| Harris & Company LLP | 76,379 |
| Island Temperature Controls | 109,895 |
| Jenner Chevrolet Buick Gmc Ltd. | 137,088 |
| Lafrentz Road Marking | 61,302 |
| Logic League Consulting Ltd. | 50,400 |
| McElhanney Consulting Services Ltd. | 72,547 |
| Michell Excavating | 54,631 |
| Minister of Finance-EHT | 76,372 |
| Monk Office | 30,651 |
| Municipal Insurance Association of British Columbia | 158,176 |
| Municipal Pension Plan | 608,289 |
| North Island Pumps | 45,975 |
| Pacific Audio Works | 32,780 |
| Pacific Blue Cross | 208,526 |
| Phillips, Steven | 27,319 |
| PrairieCoast Equipment | 62,099 |
| Raylec Power Ltd. | 221,020 |
| Receiver General For Canada | 1,322,883 |
| Receiver General For Canada - RCMP Policing Contracts & Cost Recovery | 2,304,667 |
| Regroove Solutions Inc. | 60,417 |
| Rocky Mountain Phoenix | 41,577 |
| Scottish Line Painting Ltd. | 26,259 |
| Shaw Cablesystems GP | 56,255 |
| Softwareone Canada Inc. | 42,017 |
| Thrive Networks | 29,354 |
| Tip Top Tree Service Ltd. | 27,512 |
| Tomahawk Tree Service (2006) Ltd. | 48,659 |
| Victoria Contracting & Municipal Maintenance Corp. | 1,556,978 |
| Waste Management of Canada Corp. | 560,811 |
| Watt Consulting Group | 74,660 |
| West Shore Parks & Rec. Society | 768,358 |
| Workers' Compensation Board of BC | 101,745 |
| Young Anderson Barristers & Solicitors | 57,264 |
| Total aggregate payments to suppliers exceeding $25,000 | 13,734,511 |
| Consolidated total of payments of $25,000 or less | 1,192,925 |
| Total aggregate payments to suppliers | 14,927,436 |
Grants and contributions
| School District No. 61 | 41,000 |
| View Royal Firefighters Association | 36,913 |
| View Royal Reading Centre | 30,000 |
| Consolidated total of all grants and contributions $25,000 or less | 34,060 |
| Total aggregate grants and contributions | 141,973 |
Reconciling items, including adjustments for accrual-based accounting, disbursements for items which are not considered expenses for financial statement purposes, including payments for employee payroll deductions, capital acquisitions, debt principal, refunds, payments made directly by West Shore Parks and Recreation and the non-rebatable portion of GST: (4,475,260)
Total expense for goods, services and debt interest per Consolidated Financial Statements, Schedule 1: $ 10,594,149
Prepared pursuant to the Financial Information Regulation, Schedule 1, section 7 and the Financial Information Act, section 2
Town of View Royal
Statement of Remuneration and Expenses
As at December 31, 2023 (Unaudited)
| Name | Position | Remuneration | Expenses | Total |
|---|---|---|---|---|
| Elected Officials | ||||
| Tobias, Sid | Mayor | 47,797 | 2,833 | 50,630 |
| Brown, Donald | Councillor | 23,899 | 538 | 24,437 |
| Kowalewich, Damian | Councillor | 23,899 | 372 | 24,271 |
| Lemon, Margaret | Councillor | 23,899 | 446 | 24,345 |
| MacKenzie, Alison | Councillor | 23,899 | 475 | 24,374 |
| Mattson, Ron | Councillor | 23,899 | 347 | 24,246 |
| Rogers, John | Councillor | 23,899 | 485 | 24,384 |
| 191,191 | 5,496 | 196,687 | ||
| Employees | ||||
| Anema, Kim | Chief Administrative Officer | 185,875 | 5,561 | 191,436 |
| Atkinson, Angela | Accountant/Business Analyst | 94,678 | 822 | 95,500 |
| Bevan, Heath | Assistant Fire Chief | 167,940 | 621 | 168,561 |
| Bolster, Elena | Deputy Corporate Officer | 98,116 | 1,599 | 99,715 |
| Chow, Jeffrey | Senior Planner | 107,933 | 1,828 | 109,761 |
| Christenson, Dawn | Director of Finance and Technology | 158,504 | 5,342 | 163,846 |
| Cochrane, Jennifer | Executive Assistant | 96,464 | 543 | 97,007 |
| Denys, Melanie | Records Coordinator/Archivist | 75,942 | 4,455 | 80,397 |
| Drolet, Joseph | Firefighter | 150,603 | 16 | 150,619 |
| Ferguson, Jason | Parks Worker | 80,738 | 183 | 80,921 |
| Gray, Steve | Firefighter | 107,285 | 307 | 107,592 |
| Harbicht, Rob | Parks Worker | 80,224 | 378 | 80,602 |
| Hurst, Paul | Director of Protective Services | 188,446 | 3,180 | 191,626 |
| Jones, Sarah | Director of Corporate Administration | 189,415 | 6,633 | 196,048 |
| Kershaw, Keith | Firefighter | 104,573 | 551 | 105,124 |
| Leung, Ivan | Director of Engineering | 139,800 | 1,679 | 141,479 |
| Lubberts, Ben | Deputy Director of Engineering | 121,739 | 3,575 | 125,314 |
| Mollin, Troy | Captain-Emergency Programs | 149,464 | 478 | 149,942 |
| Morgan, Sarah | Accounting Clerk II | 75,766 | 1,268 | 77,034 |
| Pitre, Geoffrey | Captain-Fire Prevention | 169,595 | 1,211 | 170,806 |
| Podmoroff, David | Parks Supervisor | 115,310 | 113 | 115,423 |
| Scory, Sterling | Senior Planner | 105,234 | 4,649 | 109,883 |
| Taylor, Leanne | Director of Development Services | 143,726 | 7,549 | 151,275 |
| Vella, Steven | Manager of Accounting | 131,406 | 3,285 | 134,691 |
| Woodley, Darryl | Engineering Technologist | 96,078 | 2,374 | 98,452 |
| Consolidated total of other employees with remuneration of $75,000 or less | 1,386,323 | 39,678 | 1,426,001 | |
| 4,521,177 | 97,878 | 4,619,055 |
Reconciliation
Total remuneration and expenses for elected officials and employees: $ 4,712,368 Remuneration, $ 103,374 Expenses, $ 4,815,742 Total.
Reconciling items, including adjustments for accrual-based accounting, accruals for vacation, sick leave and post-employment benefits, employer share of CPP and EI, and labour costs paid through other entities (RCMP, West Shore Parks and Recreation) or capitalized: 1,945,755
Total labour and benefits expense per Consolidated Financial Statements, Schedule 1: $ 6,658,123
Prepared under the Financial Information Regulation, Schedule 1, section 6(2), (3), (4), (5) and (6)
Town of View Royal
Statement of Guarantee and Indemnity Agreements
As at December 31, 2023 (Unaudited)
The Town of View Royal has not provided any guarantees or indemnities under the Guarantee and Indemnities Regulation.
Prepared under the Financial Information Regulation, Schedule 1, subsection 5(3) and 5(4)
Town of View Royal
Statement of Severance Agreements
As at December 31, 2023 (Unaudited)
There were no severance agreements made between the Town of View Royal and its non-unionized employees during fiscal year 2023.
Prepared under the Financial Information Regulation, Schedule 1, subsection 6(8)
Town of View Royal
Statement of Permissive Tax Exemptions
As at December 31, 2023 (Unaudited)
| Organization | Folio | Municipal Property Tax |
|---|---|---|
| Places of public worship | ||
| All Saints Church - 287 Pallisier Ave | 401-04412.018 | $ 12,472 |
| St. Columba Church - 40 High Street | 401-07654.010 | 7,555 |
| Community activity centres | ||
| Strawberry Vale Community Hall - 11 High Street | 401-07647.010 | 9,405 |
| View Royal Community Hall - 279 Island Highway | 401-04399.010 | 7,919 |
| Not for profit organizations | ||
| Island Corridor Foundation | ||
| PID 023-005-459; Sections 6, 97, and 103: Plan VIP60330 | 401-18806.000 | 12,264 |
| PID 011-825-871;014-980-258;024-036-021;024-039-209;024-839-957 | 401-18807.000 | 20,112 |
| PID 011-825-871;014-980-258;024-036-021;024-039-209;024-839-957 | 401-18807.000 | 6 |
| PID 024-635-987; Lot 1, Sections 8 & 27; Plan VIP69799 | 401-18807.002 | 704 |
| Total | $ 70,437 |
Town of View Royal
Statement of Development Cost Charges (DCCs)
As at December 31, 2023
| Balance January 1 | Transferred to Projects | DCCs Received | Interest Earned | Balance December 31 | |
|---|---|---|---|---|---|
| Drainage DCCs | $ 1,350,651 | $ - | $ 74,679 | $ 72,268 | $ 1,497,598 |
| Highways DCCs | 2,090,251 | 199,709 | 927,666 | 128,593 | 2,946,801 |
| Park Improvement DCCs | 597,192 | 21,728 | 447,837 | 41,178 | 1,064,479 |
| Park Land DCCs | 916,076 | - | 745,731 | 64,878 | 1,726,685 |
| Sewer DCCs | 1,268,231 | 3,649 | 880,106 | 86,491 | 2,231,179 |
| Total | $ 6,222,401 | $ 225,086 | $ 3,076,019 | $ 393,408 | $ 9,466,742 |
Town of View Royal - Statistical Information (Unaudited)
Taxable Assessments of Land and Improvements - Final Roll Totals
| 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|
| Residential | 2,683,922,503 | 2,787,480,303 | 2,877,331,703 | 3,614,786,203 | 4,077,527,703 |
| Utilities | 333,700 | 378,000 | 431,800 | 726,800 | 804,500 |
| Light Industry | 3,632,000 | 3,836,000 | 3,697,100 | 3,863,000 | 3,873,000 |
| Business | 317,028,800 | 316,643,200 | 296,649,300 | 312,797,400 | 348,733,400 |
| Rec/Non Profit | 5,632,000 | 8,535,400 | 8,939,600 | 7,034,000 | 9,775,000 |
| Farm | 60,496 | 43,205 | 55,708 | 56,910 | 56,915 |
| Total | 3,010,609,499 | 3,116,916,108 | 3,187,105,211 | 3,939,264,313 | 4,440,770,518 |
Property Tax Rates - Municipal ($ per $1,000 assessment)
| 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|
| Residential | 2.26725 | 2.27610 | 2.33334 | 1.98712 | 1.95737 |
| Utilities | 40.00000 | 40.00000 | 40.00000 | 40.00000 | 40.00000 |
| Light Industry | 7.56922 | 7.59875 | 7.78987 | 7.87298 | 7.75511 |
| Business | 8.04875 | 8.08015 | 8.61774 | 8.54820 | 8.42023 |
| Rec/Non Profit | 10.71617 | 10.75798 | 11.90005 | 11.92273 | 11.74424 |
| Farm | 20.93015 | 21.01180 | 21.54026 | 23.01088 | 22.66639 |
Municipal Property Tax Billings by Property Class
| 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|
| Residential | 6,085,122 | 6,344,050 | 6,713,792 | 7,183,013 | 7,985,339 |
| Utilities | 13,347 | 15,120 | 17,272 | 29,072 | 32,180 |
| Light Industry | 27,490 | 29,149 | 28,800 | 30,413 | 30,036 |
| Business | 2,551,685 | 2,558,525 | 2,556,447 | 2,680,626 | 2,929,644 |
| Rec/Non Profit | 60,352 | 82,335 | 106,382 | 83,864 | 114,800 |
| Farm | 1,266 | 908 | 1,200 | 1,310 | 1,290 |
| Total | $ 8,739,262 | $ 9,030,087 | $ 9,423,893 | $ 10,008,298 | $ 11,093,289 |
¹ Supplementary assessment billings are attributed to the fiscal year in which they were paid, rather than the assessment roll year.
2023 Assessments by Property Class
2023 Municipal Property Tax by Property Class
Principal Corporate Taxpayers
| Registered Owner | Primary Property | Total 2023 General Municipal Taxes Levied |
|---|---|---|
| Eagle Creek Village Property Ltd. | Eagle Creek Village | $ 727,810 |
| Pioneer Square Holdings Ltd. | Admirals Walk | 337,264 |
| Goodwill Investments Ltd. | Fort Victoria | 210,814 |
| West Shore U-Lock Mini Storage Ltd. | U-Lock Mini Storage | 191,838 |
| Great Canadian Casinos Inc. | Elements Casino | 175,494 |
| Canadian Tire Real Estate Ltd. | Canadian Tire | 131,398 |
| Christie Point Apartments Ltd. | Christie Point Apartments | 124,228 |
| Natural Properties Ltd. | Reliable Controls | 123,753 |
| Adams Storage Village Ltd. | Adams Storage | 118,855 |
| 599510 BC Ltd. | Ashley Furniture | 98,912 |
| Total Tax Contributions from Top 10 Corporate Taxpayers | $ 2,240,366 | |
| Total General Municipal Tax | $ 11,093,289 | |
| Proportion of municipal tax paid by top ten corporate taxpayers | 20.20% |