2013 Annual Report - Strathcona Regional District · the Strathcona Regional District Board the...

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Strathcona Regional District 2013 Annual Report and Financial Statements

Table of Contents

Page

History and Purpose 3

Vision, Mission and Values 4

Elected Officials and Appointed Officers 5

Message from the Chair 6

Message from the Chief Administrative Officer 7

Functions and Participating Areas 8

2013 Highlights 11

Management’s Responsibility for Financial Reporting 14

Auditors’ Report 15

Consolidated Financial Statements

A Consolidated Statement of Financial Position 17

B Consolidated Statement of Operations 18

C Consolidated Statement of Changes in Net Financial Assets 19

D Consolidated Statement of Cash Flows 20

Notes to the Consolidated Financial Statements 21

Supporting Schedules

1 Consolidated Schedule of Segment Disclosure by Service 2013 28

2 Consolidated Schedule of Segment Disclosure by Service 2012 29

3 Consolidated Schedule of Tangible Capital Assets 30

4 Consolidated Schedule of Long-Term Debt 31

Supplementary Information and Information Pursuant to the Financial Information Act

Statement of Financial Information Approval 34

i Consolidated Summary of Surpluses and Reserves 35

ii Schedule of Changes in Reserve Fund Balances 37

iii Schedule of Service Requisition Limits 38

iv Schedule of Guarantee and Indemnity Agreements 40

v Schedule of Remuneration and Expenses 41

vi Statement of Severance Agreements 42

vii Schedule of Payments to Suppliers 43


Page 1



Page 2

History and Purpose

The Strathcona Regional District (SRD) is a partnership of four electoral areas and five municipalities providing approximately 43,000 residents with 53 services that include parks, land use planning, water, solid and liquid waste systems, and a full-service sports facility. The geography of the SRD ranges from forested hills to remote inlets to picturesque villages to vibrant urban landscapes. The borders extend from the Oyster River in the south to the southern part of Brooks Peninsula in the northwest, to the Sayward Valley and then east to take in Cortes, Quadra and the Discovery Islands, and a portion of the mainland north of Powell River.

The SRD was established on February 15, 2008, when the Provincial government restructured the Comox Strathcona Regional District into the Strathcona Regional District and the Comox Valley Regional District, immediately to the south of the SRD. The Strathcona Regional District municipal members include the Villages of Gold River, Sayward, Tahsis, and Zeballos and the City of Campbell River. Its electoral areas, shown on the map below, include Area A (Kyuquot/Nootka-Sayward), Area B (Cortes Island), Area C (Discovery Island-Mainland Inlets) and Area D (Oyster Bay-Buttle Lake).


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Vision

To provide the citizens with a healthy environment and social well being that leads to a vibrant

quality of life through responsible economic development and effective delivery of services.

Mission

On behalf of our constituents we will:

Advocate

Liaise with other orders of government (Federal, Provincial, First Nations)

Exercise local control

Deliver services economically and efficiently

Reach out and engage the public

Effectively manage growth

Values

We honour and value:

Respect for each other

Leadership

Integrity

Responsibility

Accountability

Dedication

Innovation

Diversity

Openness

Strathcona Regional District offices

990 Cedar Street Campbell River, BC


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2013 Elected Officials and Appointed Officers

Board of Directors

City of Campbell River A. Adams City of Campbell River R. Mennie City of Campbell River R. Kerr City of Campbell River C. Moglove City of Campbell River M. Storry Village of Gold River C. Anderson Village of Sayward J. MacDonald Village of Tahsis B. Overton Village of Zeballos E. Lewis (Chair) Electoral Area A – Kyuquot-Nootka/Sayward G. Whalley Electoral Area B – Cortes Island N. Anderson Electoral Area C – Discovery Islands–Mainland Inlets J. Abram Electoral Area D – Oyster Bay–Buttle Lake B. Leigh

Officers

Chief Administrative Officer R. Hotsenpiller Officer responsible for Financial Administration D. Christenson Officer responsible for Corporate Administration T. Yates


Page 5

Message from the Chair

As part of my privilege as Chair of the Board, I would like to present to you, on behalf of my colleagues at the Strathcona Regional District Board the 2013 Annual Report. This is the result of many months of Board and staff collaboration and it is a pleasure to now present it to you for your review.

The SRD was established in 2008 as a split in the Comox Strathcona Regional District, by decree of the Minister of the day. Year by year we have been improving on the situation that was handed to us. I am proud to be the Chair of such a promising organization. We are working together extremely well as a Board and with our excellent staff.

In this past year we defied the norm in other regions and hired a new Chief Administrative Officer from within our organization rather than looking afield. Under his leadership we have just about completed the task of putting in place all of the key players necessary to make our organization do what it is intended to do: serve the public!

In the past year we have accomplished many noteworthy goals. We have a new First Nations observer at the table from the Ka:’yu:’k’t’h’/Chek’tles7et’h’ First Nations and we will add more First Nations members to the table as treaties are completed. We are all part of the same community and contribute to the well-being of our area. We have taken part in numerous Federal and Provincial initiatives that will allow our voices to be heard at those levels on issues that affect constituents every day concerning the environment, the economy and your social well being. We have spent a lot of time working through the process of proposals such as a boundary expansion to the City of Campbell River, water and sewer issues in a number of areas and substantial improvements to the Strathcona Gardens facility.

We are finally realizing the building of a new hospital in our area and also one in the Comox Valley. This has been a long time coming and has taken an inordinate amount of energy and time on the part of the Board and the citizens of our area. Together, we will have a facility that we can all be proud of and will make good use of into the future. We are also working diligently on various solid waste management issues for all of the communities within our area. This is a massive undertaking and is a cost that we must bear to meet Provincial requirements and local needs.

It is my hope that in this coming year we will work even more closely together to accomplish the job of governing such a diverse area in the best way possible. We need to work together and ensure that no one is overlooked. We are one large community and we need to realize that sooner than later. Our strength is in our constituents and in our good governance. I look forward to working with my colleagues, our staff and most of all, you, the citizens whom we serve, in the coming year.

Jim Abram Chair of the Board

May 22, 2014


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Message from the Chief Administrative Officer

2013 has been a pivotal year in the development of the Strathcona Regional District. From 2008 through 2012, much effort has been directed towards forming and building a new local government. Five years later that energy turns towards the future and how to advance the organization as a modern, cost effective, service-oriented entity. The 2013 Annual Report contributes to this progress, it is an important public record; one that identifies the work of local government, keeps the citizenry informed and contributes to the democratic process.

The SRD delivers over fifty-three separate services over a vast area, including engineering, planning, parks, waste management, recreation and transportation. In each of these areas there are successes to celebrate and challenges to overcome. The SRD remains dedicated to developing strong relationships with First Nations governments and communities and made advances in this regard in 2013. The acquisition of a new fire truck for Cortes Island Volunteer Fire Department increased community safety as did the seismic evaluation of Blenkin Memorial Hall on Quadra Island. Strathcona Gardens continued to reduce our carbon footprint and increase the user experience at the Rod Brind’Amour Arena through a significant overhaul and an upgrade of the pool fixtures. Finding the right balance on servicing agreements between local governments and providing services to our member municipalities remain challenges and goals for the future.

In 2013 the Regional Board narrowed its strategic priorities with a greater emphasis upon community wellness, including a new hospital to the Campbell River Region, community healthcare and contributing to the challenge of homelessness in the region. They also committed to the future by advancing projects that furthered corporate communications, records management and asset management; essential building blocks for the government of the future.

We, as staff, believe in service to the public and take pride in contributing to community wellbeing. I am honoured to work with my colleagues at the SRD and thank them for their dedication. Whether you drop by our service desk, visit our website, call or email, it is a priority to assist the citizens of the SRD and we welcome feedback on how we are serving the community.

While not appearing on any balance sheet, the work of the many volunteers throughout the Regional District makes a profound difference to our collective way of life. Acknowledgement goes out to the volunteers in the emergency program, fire departments, recreational programs, Advisory Planning Commissions amongst many other organizations.

This Annual Report demonstrates that the Regional District is in a healthy financial position; however, like many local governments the SRD has the challenge of ensuring that capital reserves and other levels of funding will be sustainable into the future.

As an organization, we look to advancing Regional Board priorities in 2014 and continuing to provide a high level of service to our rural communities.

Russ Hotsenpiller Chief Administrative Officer

May 22, 2014


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Functions and Participating Areas

Function Participating Area(s)

General Government Services

Electoral Areas Administration and Election Services All electoral areas

Feasibility Studies – Electoral Areas and Regional All member municipalities and electoral areas

General Administration All member municipalities and electoral areas

Grants in Aid All electoral areas

Member Municipality Administration All member municipalities

Protective Services

911 Emergency Answering All member municipalities and electoral areas

Area A Kyuquot/Nootka Emergency Program Part of Electoral Area A

Area D Animal Control Electoral Area D

Building Inspection Electoral Area D

Campbell River Area D Fire Protection Part of Electoral Area D

Noise Control Electoral Area D

North Quadra Island Assistance Response Part of Electoral Area C

Sayward Valley Fire Protection Part of Electoral Area A

Soil Deposit and Removal Control Electoral Area D

South Cortes Island Fire Protection Part of Electoral Area B

Strathcona Emergency Program All electoral areas and municipalities

Unsightly Premises Electoral Area D

Transportation Services

Area C Street Lighting Electoral Area C

Area D Street Lighting Part of Electoral Area D

Area D Transit Electoral Area D

Oyster River Bank Protection Part of Electoral Area D

Environmental Health Services

Area A Kyuquot/Nootka Solid Waste Disposal Part of Electoral Area A

Area D Water Part of Electoral Area D

Cortes Island Refuse Collection Part of Electoral Area B

Cortes Island Refuse Disposal Part of Electoral Area B

Craig Road Water Part of Electoral Area D

Liquid Waste Management Plan Electoral Areas B and D

Quathiaski Cove Sewer Part of Electoral Area C

Sayward Valley Refuse Collection Part of Electoral Area A

Sayward Valley Refuse Disposal Village of Sayward and part of Electoral Area A

Walters Cove Water Supply Part of Electoral Area A


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Function Participating Area(s)

Development Services

Area A Economic Development Parts of Electoral Area A

Area C Economic Development Electoral Area C

House Numbering Electoral Areas B, C, D and part of Electoral Area A

Planning All electoral areas

Planning – Non-Part 26 All member municipalities and electoral areas

Recreation and Cultural Services

Area B Community Parks Electoral Area B

Area C Community Parks Electoral Area C

Area D Community Parks Electoral Area D

Heritage Conservation Electoral Areas B and C

Kyuquot Community Hall Part of Electoral Area A

Quadra Island Community Hall Part of Electoral Area C

Sayward Valley Recreation and Community Hall Part of Electoral Area A

Strathcona Gardens Recreation Complex City of Campbell River and Electoral Area D

Vancouver Island Regional Library All electoral areas


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Page 10

2013 Highlights

Ka:’yu:’k’t’h’/Chek’tles7et’h’ First Nations Participation at Regional Board Meetings

On January 18, 2013 the Regional District invited the

Ka:’yu:’k’t’h’/Chek’tles7eth’h’ First Nation to attend a one day

Community to Community Forum at the Maritime Heritage

Centre in Campbell River.

The Forum provided an opportunity for local government and

first nation representatives to meet one another and exchange

ideas, concerns and viewpoints in a constructive and respectful

manner. In addition, it also gave participants the opportunity to learn from each other and to start building

a relationship that would sustain their mutual interests over the long term.

At the January 24th Regional Board meeting, the directors passed a resolution announcing an intention to

invite the Ka:’yu:’k’t’h’/Chek’tles7et’h’ First Nations government to participate in Regional Board meeting as

an observer. On March 13, 2013 the Regional Board amended its procedure bylaw to recognize

participation at Board meetings by treaty first nations and passed a resolution inviting the

Ka:’yu:’k’t’h’/Chek’tles7et’h’ First Nations to appoint a representative to participate at Regional Board and

Committee of the Whole meetings as an observer.

Finally, on July 10, 2013, Chair Edward (Ted) Lewis welcomed the Ka:’yu:’k’t’h’/Chek’tles7et’h’ First

Nations representative Lillian Jack, to the Board.

New Fire Pumper Truck for the Cortes Island Volunteer Fire Department

In 2013 the Cortes Island Volunteer Fire Department

took possession of a new 2013 E-One Freightliner Fire

Pumper to fulfill its service requirements. This fire

truck has several operational and design elements that

are ideal for meeting the Cortes Island firefighting

requirements such as:

a top mount pump console for operator visibility

and safety;

a 970 gallon water tank capacity;

a Hale 1250 gpm fire pump;

a 4 door crew cab with 4 SCBA jump seats; and

a 300 hp diesel engine.


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The fire truck has the ability to navigate steep and winding terrain which makes it ideal for use on Cortes

Island. It is anticipated that the new fire truck will continue to meet the community’s service requirements

for the next 20 years.

Seismic Study for Blenkin Memorial Hall

The Quadra Island community centre, located at Blenkin Memorial Park on West Road, Quadra Island is a focal point of the community and residents are supportive of, and participate in, numerous programs and activities offered through the facility. In the event of an emergency, the centre is identified as a reception centre where emergency services personnel would be working to deal with the emergency. The main hall was built in 1985 with a new stage and a two-storey addition, consisting of meeting rooms and additional washroom facilities, added in 2001.

As part of the 2013-2017 financial plan process monies were set aside to complete a seismic evaluation of the community centre. The professional services of Herold Engineering Ltd. were retained to complete a seismic project identification report which was completed in October 2013. The report identified upgrades planned for completion in 2015.

Parks and Trails Symposium on Cortes Island On April 23, 2013, 20 community participants and 5 presenters gathered at Linnea School on Cortes Island for an opportunity for community input on park and trail interests. It also gave an opportunity for the community to review and establish priorities for park interests as a result of the adoption of the new Official Community Plan. The symposium concluded with a group review that identified trail mapping, trail connections, beach accesses and the organization of a trail working group as top priorities.


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Strathcona Gardens Recreation Complex

The Strathcona Gardens (the “Gardens”) is a multipurpose recreation centre which has 2 NHL size ice

surfaces, a leisure/practice ice surface, a 37.5 meter swimming pool, a leisure pool with a waterslide and a

fitness area.

Rod Brind’Amour Arena

The Rod Brind’Amour Arena underwent a major overhaul in

2013 which included replacing the existing concrete slab and in-

slab brine system, redesigning and updating the mechanical

system to utilize waste heat for the subfloor heating, updating

the electrical system to ensure efficient, trouble free operation

and replacement of the dasher board system, side boards and

glass. The total cost of the project was $940,000.

Main Pool Lighting and Fire Alarm Panel Upgrades

Some other Strathcona Gardens highlights for 2013 include new

LED lighting in the main pool. The lighting was replaced with

more efficient LED lights which will draw less than 30% of the

energy that the original metal halide fixtures did. The new

lighting is very low maintenance and comes with a 10 year

guarantee.

A new fire alarm panel was installed in August 2013 replacing

the old 1979 system. The new panel provides a more

serviceable and upgradable system which has the ability to add

smoke detectors, heat sensors and pre-recorded voice

instructions for the public during an emergency.

The total cost for both the pool lighting and fire alarm panel

project was $61,860, with 50% of the cost funded by Western

Economic Diversification Canada. Both projects were

completed on time and within budget.

Score Clock

Thanks to a contribution from the Campbell River Minor

Hockey Association, Arena 2 also has a new score clock!

The old score clock was installed in 1996 and used

incandescent bulbs that resemble the older 110 volt

Christmas lights. It has been replaced with a new LED clock

that works through a wireless controller. The new clock

consumes less energy and will not require constant bulb

replacement.


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Management’s Responsibility for Financial Reporting

The consolidated financial statements have been prepared by management in accordance with Canadian public sector accounting standards for British Columbia local governments and the integrity and objectivity of these statements are management’s responsibility. Management is also responsible for all the supple-mentary statements and schedules, and for ensuring that this information is consistent, where appropriate, with the information contained in the financial statements.

Management is also responsible for implementing and maintaining a system of internal controls to provide reasonable assurance that reliable financial information is produced.

The Board of Directors is responsible for reviewing and approving the financial statements and for ensuring that management fulfils its responsibilities for financial reporting and internal control.

The external auditors, MNP LLP, conduct an independent examination in accordance with generally accepted auditing standards and express their opinion on the financial statements. Their examination includes a review and evaluation of the Regional District’s system of internal controls and appropriate tests and procedures to provide reasonable assurance that the financial statements are presented fairly. The external auditors have full and free access to the Board of Directors and meet with it at least two times a year.

Dawn Christenson, BAccS, CPA, CGA Officer responsible for Financial Administration, pursuant to Section 199 of the Local Government Act

May 22, 2014

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


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Independent Auditors' Report

To the Board of Directors of the Strathcona Regional District: We have audited the accompanying consolidated financial statements of the Strathcona Regional District, which comprise the consolidated statement of financial position as at December 31, 2013 and the consolidated statements of operations, changes in net financial assets, cash flows and related schedules 1 to 4 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. 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 the auditors’ 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 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 financial position of the Regional District as at December 31, 2013, and the results of its operations, changes in net financial assets and its cash flows for the year then ended in accordance with Canadian public sector accounting standards. Other Matters The supplementary information, including schedules i through vii, is presented for purposes of additional analysis. Such supplementary information has not been subjected to the auditing procedures applied in the audit of the consolidated financial statements. We have not audited, reviewed or otherwise attempted to verify the accuracy or completeness of such information. Readers are cautioned that these supplementary statements may not be appropriate for their purposes.

Campbell River, British Columbia

May 22, 2014 Chartered Accounants

201-990 Cedar Streeet, Campbell River, BC, V9W 7Z8 Phone: 250-287-2131


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Page 16

Statement A

2013 2012

Financial assetsCash and cash equivalents (Note 3) 10,191,429$ 9,629,106$ Receivables (Note 4) 753,269 306,808 Inventory for resale 10,234 9,683 Investments (Note 5) 149,985 149,985 Municipal debt receivable (Note 6) 5,021,961 6,326,409

Total financial assets 16,126,878 16,421,991

LiabilitiesAccounts payable and accrued liabilities (Note 7) 913,003 616,188 Deferred revenue (Note 8) 3,248,896 2,844,155 Long-term debt

Member municipalities (Note 6) 5,021,961 6,326,409 Regional District (Note 10) (Schedule 4) 833,535 493,596

Total liabilities 10,017,395 10,280,348

Net financial assets 6,109,483 6,141,643

Non-financial assetsPrepaid expenses 87,449 36,029 Tangible capital assets (Schedule 3) 15,602,549 14,792,522

Strathcona Regional District

Consolidated Statement of Financial Position

As at December 31, 2013

Total non-financial assets 15,689,998 14,828,551

Accumulated surplus (Note 11) 21,799,481$ 20,970,194$

Contingent liabilities (Note 13)

Dawn Christenson, BAccS, CPA, CGA

Officer responsible for financial administration,

pursuant to Section 199 of the Local Government Act

The accompanying notes and schedules are an integral part of these financial statements.


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Statement B

2013 2013 2012Actual Budget Actual

(Note 20)

RevenueFrontage and parcel taxes 18,507$ 18,484$ 18,484$ Grants in lieu of taxes 156,991 126,532 159,664 Property tax requisition 7,844,155 7,844,155 7,311,010 Government grants and transfers 722,559 755,605 700,744 Sales of services 1,889,847 1,995,837 1,886,794 Other revenue from own sources 146,001 86,899 94,760 Contributions from others 18,851 14,267 9,816 Interest earned 88,594 10,000 87,355 Actuarial adjustment of debenture debt 2,908 - 2,525

Total revenue 10,888,413 10,851,779 10,271,152

ExpenseGeneral government services 2,084,768 2,620,743 2,124,476 Protective services 1,094,193 1,172,578 1,096,623 Transportation services 155,848 160,893 149,045 Environmental health services 868,699 1,030,190 764,929 Development services 535,635 670,056 470,068 Recreation and cultural services 5,319,983 5,069,317 5,318,451

Total expense 10,059,126 10,723,777 9,923,592

Annual surplus 829,287 128,002 347,560

Accumulated surplus, beginning 20,970,194 20,970,194 20,622,634

Accumulated surplus, ending 21,799,481$ 21,098,196$ 20,970,194$


Consolidated Statement of Operations

Year ended December 31, 2013



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Statement C

2013 2013 2012Actual Budget Actual

(Note 20)

Annual surplus 829,287$ 128,002$ 347,560$

Acquisition of tangible capital assets (1,605,874) (2,288,403) (106,197) Amortization of tangible capital assets 795,847 - 761,294 Change in prepaid expenses (51,420) - (6,283)

Increase (decrease) in net financial assets (32,160) (2,160,401) 996,374

Net financial assets, beginning 6,141,643 6,141,643 5,145,269

Net financial assets, ending 6,109,483$ 3,981,242$ 6,141,643$


Consolidated Statement of Changes in Net Financial Assets




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Statement D

2013 2012

Operating activitiesAnnual surplus 829,287$ 347,560$

Items not affecting operating activities:Actuarial adjustment of debenture debt (2,908) (2,525) Amortization of tangible capital assets 795,847 761,294 Change in prepaid expenses (51,420) (6,283) Gain on disposal of tangible capital asset - (1,000)

Decrease (increase) in non-cash financial assets: Receivables (446,461) 34,612 Inventory for resale (551) 1,223

Increase in short-term liabilities:Accounts payable and accrued liabilties 296,815 28,250 Deferred revenue 404,741 437,015

Cash provided by operating activities 1,825,350 1,600,146

Capital activitiesAcquisition of tangible capital assets (1,605,874) (106,197) Proceeds on disposition of tangible capital asset - 1,000

Cash provided by (applied to) capital activities (1,605,874) (105,197)

Financing activitiesCapital lease principal repaid - (11,983) Debt principal repaid (197,267) (166,267) Net debt issued for capital 540,114 -

Cash provided by (applied to) financing activities 342,847 (178,250)

Net change in cash and cash equivalents 562,323 1,316,699

Cash and cash equivalents, beginning 9,629,106 8,312,407

Cash and cash equivalents, ending 10,191,429$ 9,629,106$

Supplemental information

Interest received 125,780$ 119,684$

Interest paid 21,195$ 17,814$


Consolidated Statement of Cash Flows




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Strathcona Regional District Notes to Consolidated Financial Statements


1. Purpose

The Strathcona Regional District (Regional District) was incorporated on February 15, 2008 by letters patent issued by the Province of British Columbia. Its principal activities are the provision and coordi-nation of local government services to the residents of four unincorporated electoral areas and five municipalities within its boundaries. These services include general government administration, bylaw enforcement, planning and development services, building inspection, fire protection and emer-gency response planning, public transportation, parks and recreation, water distribution and sewer collection and disposal, solid waste collection and disposal and street lighting.

2. Significant accounting policies

a) Principles of consolidation

The Regional District follows Canadian public sector accounting standards. The resources and operations of the Regional District are segregated into various funds for accounting and financial reporting purposes, each being treated as a separate entity with responsibility for the stewardship of the assets allocated to it.

The consolidated financial statements are prepared in accordance with the recommendations of the Public Sector Accounting Board (PSAB). The consolidated financial statements include the activities related to all funds belonging to the one economic entity of the Regional District. Inter-fund transactions and fund balances have been eliminated on consolidation.

b) Cash equivalents

Cash equivalents are comprised primarily of Municipal Finance Authority (MFA) pooled investments including money market, intermediate and bond funds. Regional District funds invested with MFA are pooled with other local governments and managed independently by Phillips, Hager & North Investment Management. The investments are carried at cost which approximates market value.

c) Inventory

Inventory for resale is recorded at the lower of cost or net realizable value as a financial asset.

d) Financial instruments

Financial instruments consist of cash and cash equivalents, investments, receivables, municipal debt receivable, accounts payable and accrued liabilities, temporary borrowing and long-term debt. Unless otherwise noted, it is management’s opinion that the Regional District is not exposed to significant interest, currency or credit risk arising from these financial instruments.

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 business.

f) Tangible capital assets

Tangible capital assets are recorded at cost, net of tangible capital asset disposals, write-downs and amortization. The cost of the tangible capital assets, which includes all amounts that are directly attributable to acquisition, construction, development or betterment of the asset, is amor-tized on a straight line basis over their estimated useful lives as follows:

Land improvements 20 to 50 years

Buildings 40 to 50 years

Building improvements 20 years

Machinery, equipment, vehicles and fixtures 5 to 20 years

Water systems 50 years

Sewer system 15 to 50 years


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One-half of the annual amortization is charged in the year of acquisition and in the year of dis-posal. Assets under construction are not amortized until the asset is put into use. Assets contributed to the Regional District are recorded at fair value at the time of contribution.

g) Accrued employee benefits

Based on obligations as determined by collective agreements and contractual arrangements, employee benefit accruals, which include an allowance for vacation entitlement, are recorded in the year in which they are earned.

h) Post employment benefits

The long-term, post employment benefit liability of the Regional District will be met by the Munici-pal Pension Plan into which both employees and the Regional District contribute. The Regional District is only liable for the interim retirement benefits for early retirees, from the date of retire-ment to the effective start date of the Municipal Pension Plan. Any liability for these benefits is accrued when the event occurs and the obligation arises.

i) Government transfers In 2013, the Regional District adopted the provisions of the Public Sector Accounting standard as established by the revised section PS 3410 issued in March 2011. Section PS 3410 permits a recipient government to recognize government transfers as revenue when the transfer is authorized by the transferring government, unless the transfer creates a liability for the recipient. A liability is created as a result of the recipient government not yet meeting eligibility criteria or the existence of stipulations in the transfer agreement. When a government transfer results in recognition of a liability, revenue is recognized by a recipient government as the liability is settled. The adoption of the newly issued section did not have a material impact on the consolidated financial statements.

j) Revenue recognition

Revenue is recorded on an accrual basis and is recognized in the period in which it is earned. Property tax requisition revenue is recognized in the year the requisitions are levied. Grants in lieu of taxes are recorded on an accrual basis when it is possible to reasonably estimate the amounts receivable. User fees for water, sewer and solid waste services are recognized as revenue when services have been provided, amounts are known and collection is reasonably assured. Interest income is recognized in the period in which it is earned.

k) Use of estimates

The preparation of financial statements in conformity with Canadian public sector accounting standards requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Significant areas requiring management estimates are the determination of tangible capital assets, their useful life, amortization, actuarial adjustments and provisions for contingencies. Actual results may vary from the estimates and adjustments will be reported and reflected in operations as they become known. Changes to the underlying assumptions and estimates or legislative changes in the near term could have a material impact on the provisions recognized.

3. Cash and cash equivalents

Included in cash and cash equivalents is $1,478,896 (2012 – $1,456,799) of short-term investments held with the Municipal Finance Authority in money market, intermediate and bond funds. These investments are carried at market value which approximates cost.

Also included in cash and cash equivalents is $126,331 (2012 – $133,673) that is externally restricted by agreement for the Evans Bay Port Facility reserve (Note 12).


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4. Receivables

2013 2012

Government of Canada $ 86,652 $ 44,630

Province of British Columbia 38,557 27,003

Regional and local governments 52,408 19,097

Utility service customers 128,416 91,095

Other trade receivables 447,236 124,983

$753,269 $306,808

5. Investments

Investments comprise a five-year 2.86% non-redeemable Guaranteed Investment Certificate at a cost of $149,985 (2012 – $149,985) which matures on July 5, 2016. This amount is externally restricted by an endowment fund agreement.

6. Municipal debt receivable

Pursuant to the Local Government Act, the Regional District acts as the agency through which its member municipalities borrow funds from the Municipal Finance Authority (MFA). The annual cost of servicing this municipal debt is recovered entirely from the borrowing member municipality. However, in the event of default the Regional District is contingently liable to the MFA for this debt.

2013 2012

City of Campbell River $4,909,640 $6,193,333

Village of Sayward 112,321 119,509

Village of Zeballos 0 13,567

$5,021,961 $6,326,409

7. Accounts payable and accrued liabilities

2013 2012

Province of British Columbia $ 51,904 $ 48,230

Regional and local governments 215,417 77,398

Accrued interest on long-term debenture debt 2,104 2,103

Payroll liabilities 228,919 322,954

Other trade payables 414,659 165,503

$913,003 $616,188

8. Deferred revenue

2013 2012

Community Works Fund (Note 9) $3,151,440 $2,719,335

Deferred grant contributions 39,942 76,851

Unearned revenue 57,514 47,969

$3,248,896 $2,844,155


Page 23



9. Community Works Fund

Community Works Fund is a component of the Gas Tax Agreement funding provided by the Govern-ment of Canada, through the Union of British Columbia Municipalities. Gas Tax Agreement funding may be used towards designated public transit, community energy, water, wastewater, solid waste and capacity building projects, as specified in the funding agreements. Unspent funds and the appli-cable interest earned are recorded as deferred revenue. The following balances are included in the totals reported for deferred revenue.

2013 2012

Community Works Fund, beginning balance $2,719,335 $2,205,555

Add: Amounts received during the year 490,764 490,970

Interest earned on funds 37,785 33,643

Less: Amounts allocated to projects during the year (96,444) (10,833)

Community Works Fund, ending balance $3,151,440 $2,719,335

10. Long-term debt

Long-term debt consists of interim borrowing from Municipal Finance Authority (MFA) for terms up to five years and debenture debt for longer terms. Under MFA’s interim borrowing program, loans are charged interest based on the daily 30-day Canadian Dollar Offered Rate (CDOR) plus 0.50%. Regular principal payments are not required but any amount outstanding is due at the end of the five-year term. Details of long-term debt, including maturity dates, interest rates and outstanding amounts, are summarized in the Schedule 4 – Consolidated Schedule of Long-term Debt.

Payments of principal on issued debt of the Regional District, not including municipal debt, for the next five years are:

2014 $ 6,267

2015 212,267

2016 6,267

2017 5,080

2018 514,194

Total $744,075

Interest on long-term debt recorded in the Consolidated Statement of Operations in 2013 is $19,919 (2012 – $17,748).

11. Accumulated surplus

2013 2012

Equity in tangible capital assets $14,777,157 $14,307,772

Operating funds 1,722,645 1,746,949

Capital funds 122,712 122,712

Reserve funds 3,823,965 3,574,860

Appropriated surplus 1,353,002 1,217,901

Accumulated surplus $21,799,481 $20,970,194


Page 24



12. Evans Bay Port Facility reserve

On March 22, 2010 Transport Canada divested the Evans Bay Port Facility to the Strathcona Regional District. Divestiture funds are used for eligible operations and maintenance expense, net of any input tax credits or rebates, up to the period ending March 22, 2015. The unused portion of the contribution has been deposited in a separate Canadian interest-bearing bank account dedicated exclusively for the operation of the Port.

2013 2012

Evans Bay Port Facility reserve, beginning balance $133,673 $137,861

Add: Interest earned on funds 1,726 1,781

Less: Amount applied to eligible expenses (9,068) (5,969)

Evans Bay Port Facility reserve, ending balance $126,331 $133,673

13. Contingent liabilities

As at December 31, 2013, there existed outstanding claims against the Regional District. These claims have been referred to legal counsel and to the Regional District’s liability insurers. It is not possible to determine the Regional District’s potential liability, if any, with respect to these matters.

14. Pension liability

The Regional District and its employees contribute to the Municipal Pension Plan (the 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 multi-employer 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 71 contributors from the Regional District.

The most recent actuarial valuation as at December 31, 2012 indicated a $1.370 billion 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 pension 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, assets and cost to the individual employers participating in the Plan.

The Regional District paid $268,543 (2012 – $241,269) for employer contributions while employees contributed $241,985 (2012 – $230,932) to the Plan in fiscal 2013.

15. Municipal Finance Authority debt reserve funds

The Regional District secures its long-term borrowing through the Municipal Finance Authority (MFA). As a condition of these borrowings, a portion of the debenture proceeds is retained by MFA as debt reserve funds. As at December 31, 2013 the Regional District had debt reserve funds of $2,978 (2012 – $2,840).


Page 25



16. North Island 911 Corporation

The 911 emergency answering and fire dispatch services are provided by the North Island 911 Corporation which is owned by the Regional Districts of Alberni-Clayoquot, Comox Valley, Mount Waddington, Nanaimo, Powell River and Strathcona. The shares in the corporation are owned as follows:

Alberni-Clayoquot 3 shares

Comox Valley 6 shares

Mount Waddington 1 share

Nanaimo 5 shares

Powell River 2 shares

Strathcona 4 shares

The Strathcona Regional District’s investment in shares of the North Island 911 Corporation is recorded at cost.

17. Environmental regulations

The Regional District makes every effort to comply with all environmental regulations that apply to its operations. These regulations may require future expenditures to meet applicable standards and subject the Regional District to possible penalties for violations. Amounts required to meet these obligations will be charged to operations when incurred or set aside as future reserves when they can be reasonably estimated.

18. Segmented information

The Strathcona Regional District is a diversified local government providing a wide range of services to 43,000 residents, including parks, recreation centre, community halls, fire protection, water and sewer services. As a requirement of the Local Government Act, separate financial records must be kept for each service providing detailed allocations of assets and liabilities, revenues and expenses, information concerning reserve funds and other pertinent financial details. For each reported segment, revenues and expenses represent amounts that are directly attributable to the segment and also amounts that are allocated on a reasonable basis.

Segmentation has been determined on a functional basis with consideration to service delivery and departmental accountabilities. The following is a description of the types of services included in each of the main service segments of the Regional District’s financial statements. A detailed summary of the 2013 revenues and expenses can be found in Schedule 1 of the accompanying financial state-ments. Schedule 2 contains 2012 comparative figures.

General Government

General government comprises member municipality and electoral area governance, general admin-istration, feasibility studies and grants in aid.

Protective Services

Protective services include volunteer fire departments, emergency programs, 911 answering service, building inspection and various bylaw compliance services.

Transportation

Transportation services include a rural transit service, street lighting and bank protection.

Environmental Health

The environmental health segment includes solid waste collection and disposal, liquid waste manage-ment planning, water distribution, and wastewater collection and disposal for participating electoral areas.


Page 26



Development

Development services consist of rural land use planning, economic development, heritage conserva-tion and house numbering.

Recreation and Culture

Recreation and cultural services include a full-service recreation facility offering fitness, ice and aquatic programs, community parks and trail networks and contributions towards community halls and the Vancouver Island Regional Library.

19. Comox-Strathcona Regional Hospital District

The board members of the Strathcona Regional District sit on the board of the Comox-Strathcona Regional Hospital District (CSRHD) together with the board members of the Comox Valley Regional District. The Regional District and the CSRHD are separate legal entities as defined by separate letters patent and authorized by separate legislation.

20. Reconciliation of 2013 budget

The budget amounts presented throughout these financial statements are audited and represent the five year financial plan bylaw approved by the Regional District Board on March 28, 2013.

The financial plan anticipated use of surpluses accumulated in previous years to balance against cur-rent year expenditures in excess of current year revenues. Another significant variance is that the financial plan anticipated capital expenditures rather than amortization expense.

The summary below reconciles the 2013 adopted financial plan to the Consolidated Statement of Operations.

Consolidated deficit, per the 2013 to 2017 Financial Plan and Capital Expenditure Program Bylaw No. 169, as approved March 28, 2013

($ 1,687,782)

Add:

Capital acquisitions 2,288,403

Debt principal payments 197,267

Transfers to reserves and appropriated surplus 311,814

Less:

Proceeds from borrowing (638,800)

Transfers from reserves (342,900)

Budgeted surplus, as restated $ 128,002

21. Recent accounting pronouncements

In June 2010, the Public Sector Accounting Board (PSAB) issued PS 3260 Liability for Contaminated Sites to establish recognition, measurement and disclosure standards for liabilities associated with the remediation of contaminated sites. The new section defines activities included in a liability for remediation, establishes when to recognize and how to measure a liability for remediation, and provides the related financial statement presentation and disclosure requirements. PS 3260 is effective for fiscal years beginning on or after April 1, 2014. The Regional District has not yet determined the effect of the new section on its consolidated financial statements.

22. Comparative figures

Prior year’s comparative figures have been reclassified where applicable to conform to the current year’s presentation.


Page 27

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Page 28

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Page 29

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Page 30

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Page 31



Page 32

Supplementary Information

and

Information Pursuant to the

Financial Information Act


Page 33

Statement of Financial Information Approval

The information that follows includes schedules that have been prepared under the Financial Information

Act for the year ended December 31, 2013. This information was included with the 2013 Annual Report

and Financial Statements presented to and approved by the Strathcona Regional District Board at a

meeting held on May 22, 2014.

Approved in accordance with the requirements of Financial Information Regulation 371/93, Schedule 1,

Section 9,

Jim Abram Chair of the Board

Dawn Christenson, BAccS, CPA, CGA Chief Financial Officer


Page 34

watedi

New Stamp

Appropriated Surplus Reserves

Accumulated Surplus 2013 Total 2012 Total

Note a Note b Note c

General Government Services

Area A Grants in Aid -$ -$ 7,571$ 7,571$ 6,690$

Area B Grants in Aid - - 42 42 362

Area C Grants in Aid - - 16,927 16,927 151

Area D Grants in Aid - - 159 159 603

Electoral Areas Administration and Elections 33,072 - 41,576 74,648 114,082

Feasibility Studies - Electoral Areas - - 69,071 69,071 61,622

Feasibility Studies - Regional - - 37,237 37,237 50,095

General Administration 428,641 359,779 492,267 1,280,687 1,056,933

Member Municipality Administration 41,290 - 33,262 74,552 79,837

503,003 359,779 698,112 1,560,894 1,370,375

Protective Services

911 Emergency Answering 22,180 - 10,828 33,008 25,972

Area D Animal Control 50,521 - 14,347 64,868 60,354

Building Inspection 46,699 39,954 42,934 129,587 93,525

Campbell River Area D Fire Protection 69,220 - 23,764 92,984 86,413

Emergency Rescue Supplies Grants in Aid - - - - 1,847

Kyuquot/Nootka Emergency Program 2,252 - 2,364 4,616 5,108

Noise Control - - 4,664 4,664 5,025

North Quadra Assistance Response - 1,399 241 1,640 1,623

Sayward Valley Fire Protection 28,688 75,347 57,151 161,186 109,746

Soil Deposit and Removal Control 135 - 2 137 137

South Cortes Island Fire Protection 21,000 155,557 8,074 184,631 191,319

Strathcona Emergency Program 25,289 - 24,748 50,037 56,928

Unsightly Premises - 3,797 500 4,297 4,516

265,984 276,054 189,617 731,655 642,513


Area C Street Lighting 485 - (1,234) (749) 345

Area D Street Lighting - - (234) (234) (877)

Area D Transit 15,000 - 19,281 34,281 32,159

Oyster River Bank Protection - 51,586 7,668 59,254 53,989

15,485 51,586 25,481 92,552 85,616


Area D Water 9,460 308,297 189,358 507,115 346,232

Cortes Island Refuse Collection 32,132 - 6,964 39,096 32,914

Cortes Island Refuse Disposal 42,653 4,850 4,856 52,359 52,883

Craig Road Water - - 2,696 2,696 2,283

Kyuquot/Nootka Solid Waste Disposal 4,040 - 9,412 13,452 4,687

Liquid Waste Management Plan 28,180 - 17,116 45,296 39,225

Quathiaski Cove Sewer 20,981 18,286 13,506 52,773 16,936

Sayward Valley Refuse Collection 31,795 - 5,796 37,591 42,696

Sayward Valley Refuse Disposal - 11,733 5,528 17,261 16,487

Walters Cove Water 2,937 - (7,477) (4,540) (6,492)

172,178 343,166 247,755 763,099 547,851


Consolidated Summary of Surpluses and Reserves


(Unaudited)

Schedule i

Function


Page 35

Appropriated Surplus Reserves

Accumulated Surplus 2013 Total 2012 Total

Note a Note b Note cFunction


Area A House Numbering - - 7 7 7

Area B House Numbering - - 1 1 1

Area C Economic Development 4,000 - 5,502 9,502 10,230

Area C House Numbering - - 5 5 4

Area D House Numbering - - 3 3 3

Kyuquot/Nootka Economic Development - - - - 97

Planning 77,051 10,478 146,753 234,282 282,799

Planning - Non-Part 26 - - 14,292 14,292 14,579

Sayward Valley Economic Development 18,191 - 200 18,391 15,325

99,242 10,478 166,763 276,483 323,045


Area B Community Parks 5,250 777,811 35,210 818,271 758,242

Area B Heritage Conservation - - 1,960 1,960 2,223

Area C Community Parks - 421,030 47,385 468,415 446,375

Area C Heritage Conservation - - 2,357 2,357 2,623

Area D Community Parks 5,357 975,770 36,942 1,018,069 1,019,888

Kyuquot Community Hall - - 284 284 568

Quadra Island Community Hall - 67,624 8,751 76,375 78,567

Sayward Valley Recreation and Community Hall 11,449 123,203 12,326 146,978 137,328

Strathcona Gardens Recreation Complex 275,054 417,464 248,151 940,669 1,121,198

Vancouver Island Regional Library - - 1,551 1,551 3,298

297,110 2,782,902 394,917 3,474,929 3,570,310 1,353,002$ 3,823,965$ 1,722,645$ 6,899,612$ 6,539,710$

Notes:a)

b)

c) Accumulated surpluses are the net result of operating activities and are automatically carried forward each year to offsetoperational expense or supplement revenue. A surplus occurs if projects are not completed by the end of the fiscal year, ifrevenue exceeds expectations, or when cost savings are realized. A deficit, indicated by a bracketed amount, occurs ifexpense exceeds expectations, or there is a revenue shortfall.

Appropriated surpluses are internally restricted funds accumulated through planned contributions identified in the financialplan, and may be used for emergencies, contingencies, requisition smoothing or any other designated purpose within thefunction. These amounts are not automatically carried forward to offset future operational expense or supplement revenue.

Reserves are established by bylaw or Provincial statute for specific purposes such as unforeseen future expenditures, capitalworks, machinery and equipment, and parkland acquisition. Use of reserves is identified in the financial plan as "transfersfrom reserves". Reserves may include externally restricted funds, such as endowments. Schedule ii Schedule of Changesin Reserve Fund Balances provides details about reserve fund changes in the current year.


Page 36

Reserve Type and FunctionBeginning Balance

Interest Earned

Transfers from (to)

Operating

Transfers from (to) Capital

Ending Balance

Capital works, machinery & equipment reservesArea B Community Parks 420,318$ 5,162$ 50,778$ -$ 476,258$ Area C Community Parks 132,026 1,500 26,674 - 160,200 Area C Community Parks - Evans Bay Port Facility 133,673 1,726 (9,068) - 126,331 Area D Community Parks 779,156 10,189 - (5,406) 783,939 Area D Water 102,156 1,145 25,000 - 128,301 Building Inspection 16,671 218 - - 16,889 Cortes Island Refuse Disposal 4,788 62 - - 4,850 General Administration 271,562 3,086 61,000 - 335,648 Oyster River Bank Protection 43,295 566 - - 43,861 Planning 1,018 243 5,000 - 6,261 Quathiaski Cove Sewer 184 2 18,100 - 18,286 Sayward Valley Fire Protection 50,340 493 24,514 - 75,347 Sayward Valley Recreation and Community Hall 52,749 691 - - 53,440 Sayward Valley Refuse Disposal 11,581 152 - - 11,733 South Cortes Island Fire Protection 87,460 991 22,915 - 111,366 Strathcona Gardens Recreation Complex 365,072 4,011 - (25,870) 343,213

2,472,049 30,237 224,913 (31,276) 2,695,923

Future expenditure reservesArea B Community Parks 62,035 811 - - 62,846 Area C Community Parks 27,154 355 - - 27,509 Area D Community Parks 179,289 2,345 10,000 - 191,634 Area D Water 177,672 2,324 - - 179,996 Building Inspection 22,770 295 - - 23,065 General Administration 23,820 311 - - 24,131 North Quadra Assistance Response 1,381 18 - - 1,399 Oyster River Bank Protection 7,634 91 - - 7,725 Planning 4,163 54 - - 4,217 Quadra Island Community Hall 66,751 873 - - 67,624 Sayward Valley Recreation and Community Hall 68,863 900 - - 69,763 South Cortes Island Fire Protection 41,172 519 2,500 - 44,191 Strathcona Gardens Recreation Complex 73,292 959 - - 74,251 Unsightly Premises 3,748 49 - - 3,797

759,744 9,904 12,500 - 782,148

Community parkland acquisition reservesArea B Community Parks 87,279 1,141 - - 88,420 Area C Community Parks 105,609 1,381 - - 106,990 Area D Community Parks 194 3 - - 197

193,082 2,525 - - 195,607

Endowments

Area B Community Parks-Hank's Beach Forest Conservation Park

149,985 4,296 (3,994) - 150,287

149,985 4,296 (3,994) - 150,287 3,574,860$ 46,962$ 233,419$ (31,276)$ 3,823,965$



(Unaudited)

Schedule of Changes in Reserve Fund Balances

Schedule ii


Page 37

Schedule iii

Service Requisition Limits(per $1,000 net taxable assessment,

unless otherwise stated)

General Government Administration

General Administration No stated limit

Grants in Aid – Areas A, B, C and D $0.10 limit on financial assistance grants

Electoral Areas Administration and Election Services No stated limit

Feasibility Study – Electoral Areas and Regional No stated limit

Member Municipalities Administration No stated limit

Protective Services

911 Emergency Answering $0.35

Area D Animal Control $0.323

Building Inspection No stated limit

Campbell River Area D Fire Protection No stated limit

Kyuquot/Nootka Emergency Program $6,000 or $0.25 per $1,000 net taxable assessment, whichever is greater

Noise Control $0.01

North Quadra Assistance Response $0.02

Sayward Valley Fire Protection $2.00

Soil Deposit and Removal Control $25,000 or an amount equal to the actual costs for the prior year, whichever is less

South Cortes Island Fire Protection $94,500 or $1.00 per $1,000 net taxable assessment, whichever is greater

Strathcona Emergency Program $0.03 per $1,000 net taxable assessment; minimum $1,000 per participating area

Unsightly Premises $25,000 or $0.002 per $1,000 net taxable assessment, whichever is greater


Area C Street Lighting $7,880 total maximum

Area D Street Lighting $0.20

Area D Transit $0.20

Oyster River Bank Protection $18,000 total maximum


Schedule of Service Requisition Limits


(Unaudited)


Page 38

Service Requisition Limits(per $1,000 net taxable assessment,

unless otherwise stated)


Area D Water $23,000 or $1.00 per $1,000 net taxable assessment, whichever is greater

Cortes Island Refuse Collection No stated limit

Cortes Island Refuse Disposal $0.50

Craig Road Water $36,000 total maximum

Kyuquot/Nootka Solid Waste Disposal $18,750 total maximum

Liquid Waste Management Plan $0.05

Quathiaski Cove Sewer $30,000 total maximum

Sayward Valley Refuse Collection $0.286

Sayward Valley Refuse Disposal $0.344

Walters Cove Water $2,750 total maximum


Area A Economic Development $0.05

Area C Economic Development $0.278

House Numbering $0.0277

Planning No stated limit

Planning – Non-Part 26 No stated limit


Areas B and C Heritage Conservation $0.25

Areas B, C and D Community Parks $0.50

Kyuquot Community Hall $0.50

Quadra Island Community Hall $0.50

Sayward Valley Recreation and Community Hall $1.75

Strathcona Gardens Recreation Complex $1.588

Vancouver Island Regional Library No stated limit


Page 39

Schedule iv

Prepared pursuant to the Financial Information Regulation, Schedule 1, section 5

The Strathcona Regional District has not given any guarantees or indemnities under the Guarantees and IndemnitiesRegulation.


Schedule of Guarantee and Indemnity Agreements


(Unaudited)


Page 40

Schedule v

Name Position/Area Represented* Remuneration Expenses Total

Elected and Appointed Officials

Abram, J. Director, Electoral Area C, Board Chair 55,891$ 18,935$ 74,826$ Adams, A. Alternate Director, City of Campbell River 2,025 - 2,025 Anderson, C. Director, Village of Gold River 15,792 2,472 18,264 Anderson, N. Director, Electoral Area B 48,595 11,427 60,022 Grunerud, C. Commissioner, Strathcona Gardens Commission 1,125 - 1,125 Jakeway, W. Director, City of Campbell River 16,817 20 16,837 Kerr, R. Director, City of Campbell River 15,924 - 15,924 Leigh, B. Director, Electoral Area D 48,768 8,328 57,096 Lewis, E. Director, Village of Zeballos 52,306 13,274 65,580 MacDonald, J. Director, Village of Sayward 15,982 2,087 18,069 Mason, D. Alternate Director, Village of Sayward 330 150 480 Mennie, R. Alternate Director, City of Campbell River 750 - 750 Moglove, C. Director, City of Campbell River 13,567 - 13,567 Moore, M. Alternate Director, Electoral Area B 205 68 273 Samson, L. Director, City of Campbell River 15,192 - 15,192 Schooner, J. Director, Village of Tahsis 17,215 4,632 21,847 Storry, M. Director, City of Campbell River 13,817 - 13,817 Whalley, G. Director, Electoral Area A 50,078 6,338 56,416

384,379 67,731 452,110

EmployeesBienvenu, Y. Facility Services Manager, Strathcona Gardens 74,020 1,631 75,651 Bullock, S. Programs Manager, Strathcona Gardens 74,263 1,947 76,210 Christenson, D. Financial Services Manager 106,516 2,975 109,491 Hotsenpiller, R. Chief Administrative Officer 115,777 7,739 123,516 Parker, L. Operations Manager, Strathcona Gardens 79,533 1,616 81,149 Rees, E. Community Services Manager 102,000 1,354 103,354 Rohne, J. Facility Manager, Strathcona Gardens 86,756 1,370 88,126 Yates, T. Corporate Services Manager 118,209 2,099 120,308 Consolidated total of other employees with remuneration and expenses of $75,000 or less 2,894,469 47,990 2,942,459

3,651,543 68,721 3,720,264

ReconciliationTotal remuneration and expenses for elected officials and employees 4,035,922 136,452$ 4,172,374$

601,075

Total labour and benefits expense, per Financial Statements, Schedule 1 4,636,997$

*

Prepared pursuant to the Financial Information Regulation, Schedule 1, section 6(2), (3), (4), (5), and (6)

Reconciling items, including adjustments for accrual-basedaccounting, accruals for vacation, sick leave, post-employmentbenefits, and employer share of CPP and EI benefits


Schedule of Remuneration and Expenses

(Unaudited)


Remuneration and expenses reflect entire calendar year, whereas position/area represented reflect those in effect at the inaugural Board meeting on December 12, 2013


Page 41

Schedule vi

Prepared pursuant to the Financial Information Regulation, Schedule 1, subsection 6(8)


Statement of Severance Agreements


(Unaudited)

There were no severance agreements made between the Strathcona Regional District and its non-unionizedemployees during the year ended December 31, 2013.


Page 42

Schedule vii

Supplier Name Amount Paid

990 Cedar Ltd 94,582$ BC Hydro 247,057 Cimco Refrigeration 28,578 City of Campbell River 630,685 Comox Valley Regional District 107,443 D A Townley & Associates Ltd 292,132 DB Perks & Associates Ltd 45,138 FIRST Truck Centre Vancouver Inc 276,269 FortisBC-Natural Gas 253,149 Gary Moser Consulting Inc 25,723 Leduc Contracting 27,415 McElhanney Consulting Services Ltd 46,762 Minister of Finance 70,160 MNP LLP 37,485 Municipal Finance Authority of BC 1,631,701 Municipal Insurance Association of British Columbia 49,143 Municipal Pension Plan 510,527 PAW Pacific Audio Works 52,541 Quadra Island Recreation Society 144,007 Receiver General For Canada 1,024,808 Telus 36,093 United Steel Workers - Local 1-1937 31,549 Venture Pacific Construction Management 971,616 Verschuur Margaret 39,218 Waste Management of Canada Corporation 38,296 Willis Canada Vancouver 43,351 WorkSafeBC 51,914

6,807,342

Consolidated total of all grants and contributions exceeding $25,000 1,439,187

Consolidated total paid to suppliers who received aggregate payments of $25,000 or less 1,368,308

Total aggregate amount paid to suppliers 9,614,837

(4,988,555)

4,626,282$

Prepared pursuant to the Financial Information Regulation, Schedule 1, section 7 and the Financial Information Act, section 2

Schedule 1


Schedule of Payments to Suppliers


(Unaudited)

for items which are not considered expenses for financial statement purposes,including payments for employee payroll deductions, capital acquisitions, debtprincipal payments, and the non-rebatable portion of GST/HST

Reconciling items, including adjustments for accrual-based accounting, disbursements

Total expense for interest, grants, goods and services, per Financial Statements,


Page 43



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