September 10, 2019

City of Vancouver Investor Presentation

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Disclaimer

• This presentation and subsequent discussion, contains certain forward-looking information, forecasts, projections, goals and strategies (the “forward-looking information”) with respect to revenues, funding, expenses, the financial condition, results of operation and business of the City of Vancouver (the “City”). This forward-looking information represents the City’s expectations or beliefs concerning future events and involves known and unknown risks and uncertainty that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Past performance cannot be relied on as a guide to future performance. This material is for information purposes only.

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High quality credit ratings

Thriving and robust economy

Stable revenue sources and property tax base

Strong fiscal management

Commitment to regular issuance

Investment Proposition

Aaa (stable) AAA (stable)

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Maintaining Highest Quality Credit Rating

May 09, 2019 • “The affirmation of the Aaa ratings is based

on positive operating outcomes which are supported by reliable revenues and a large, diverse economic base.”

• “The ratings also reflect the city's high levels of liquidity.”

• “The stable outlook reflects Moody’s assumption of continued strong fiscal performance over the next 18-24 months from predictable sources of income, and continued excellent levels of liquidity and strong debt affordability.”

February 07, 2019 • “Continuity of sound management under new

government and steady, but milder, economic growth will support creditworthiness.…”

• “The stable outlook reflects our assumption that a solid economy and comprehensive fiscal planning will facilitate operating and after-capital fiscal surpluses over the next two year.”

• “We believe that Vancouver's detailed long-term financial planning, as well as its experienced financial management team, will provide a solid fiscal policy anchor as the city's new government looks to implement its policy agenda.”

Economy

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Metro Vancouver – Positive Economic Indicators

3.9% 4.2%

4.0%

4.4%

2.5% 2.5% 2.4% 2.3% 2.2% 2.4%

2.6%

0.9% 1.1%

3.0%

2.1% 1.9%

2.1%

1.7% 1.6% 1.7%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

2014 2015 2016 2017 2018 2019F 2020F 2021F 2022F 2023F

Metro Vancouver Canada Real GDP Growth (%)

5.9% 5.9%

5.4%

4.6% 4.3% 4.3%

4.5% 4.5% 4.5% 4.5%

6.9% 6.9% 7.0%

6.3%

5.8% 5.6% 5.5% 5.5% 5.5% 5.5%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

2014 2015 2016 2017 2018 2019F 2020F 2021F 2020F 2021F

Unemployment (%)

1.5%

1.0%

1.3%

1.1% 1.2% 1.2%

1.1%

1.3% 1.4%

1.5%

1.1%

0.9% 1.0%

1.2% 1.3%

1.1% 1.1% 1.1% 1.1% 1.1%

0.0%

0.5%

1.0%

1.5%

2.0%

2014 2015 2016 2017 2018 2019F 2020F 2021F 2020F 2021F

Population Growth (%)

1.1% 1.2%

2.2% 2.2%

3.1%

2.4%

2.0% 2.0% 2.0% 2.0%

1.9%

1.1% 1.4%

1.6%

2.4% 2.3% 2.0% 2.0% 2.0% 2.0%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

2014 2015 2016 2017 2018 2019F 2020F 2021F 2020F 2021F

CPI (%)

Source: The Conference Board of Canada Winter 2019; Statistics Canada; CMHC Housing Time Series Database

Metro Vancouver continues to be a thriving and robust economy.

Neighbourhood Energy

Strategy

Zero Emission Buildings Plan Transportation 2040

Vancouver Food Strategy

Healthy City Strategy Climate Change

Adaptation Strategy Greenest City Action Plan

Electric Vehicle

Ecosystem Strategy

A FAMILY OF

STRATEGIES

GREENEST CITY ACTION PLAN 7

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2019 Greenest City-Wide Success

Source: City of Vancouver Greenest City 2020 Action Plan, which can be found at vancouver.ca/GreenestCityActionPlan

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Task Force for Climate-Related Financial Disclosures (“TFCD”)

In 2018 the annual financial report, the City was the first municipality to include climate-related financial disclosures that align or partially align with TCFD

recommendations

TCFD Recommended Climate Related Disclosures City of Vancouver Disclosures

Governance • Governance on risks and opportunities

Strategy

• Impacts to business, strategy and financial planning where material

Risk Management

• Disclose how risk is identified, assessed and managed

Metrics & Targets

• Disclose metrics & targets to assess and manage risks and opportunities

• Vancouver’s Climate Strategies and Governance (page 32 & 33, 2018 CoV Annual Report)

• Climate Risk and Adaptation in Vancouver (page 34 & 35 2018 CoV Annual Report)

• 2019-2022 Capital Plan

• Climate Metrics and Targets in Vancouver (page 37 2018 CoV Annual Report)

• Climate Risk and Adaptation in Vancouver (page 34 & 35 2018 CoV Annual Report)

• 2019-2022 Capital Plan

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Strong Fiscal Management

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Long-term Capital Planning

The 2019-2022 Capital Plan was approved in Dec 2018

Strategic choices about investments

Every 4 years

Identifies objectives to be achieved

(may include specific projects)

Assigns order-of-magnitude funding

10-Year Capital Strategic

Outlook

Shorter-term priorities

Every 4 years

Identifies program priorities and specific

projects to be completed

Assigns specific funding level

4-Year

Capital Plan

Project approval

Every year

Provides detailed information and

plans about projects to be completed

Assigns fixed funding level

1-Year Capital Budget

(updated quarterly) + 4-year forecast

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Strong Liquidity Position

Consolidated Reserves Balance as of 31 December 2018: $1,177.4 million

“strong liquidity profile”

“exceptional liquidity”

339 400 424 437 471 509

637 676 761

825 844

995

1,177

0

200

400

600

800

1000

1200Consolidated Reserves

12 year cumulative growth of $838M (+240%)

$ millions

- Excludes Sinking Fund

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“The City’s budget supports a livable, sustainable and equitable city”…..Sadhu Johnson, City Manager

2019 OPERATING REVENUES $1,513 MILLION

2019 OPERATING EXPENSES $1,513 MILLION Statutory requirement to balance budget

• The 2019 property tax increase reflects the cumulative items: inflation; the property tax impact of the provincial government’s new Employer Health Tax; and the additional investments in infrastructure renewal approved in the 2019-2022 Capital Plan.

• Property tax increase • 2019 – 4.50% • 2018 – 3.90% • 2017 – 3.40% • 2016 – 2.02% • 2015 – 2.46%

• Key priorities for the 2019 Budget and Five-Year Financial Plan are: • Increase housing supply and

affordability, and improve availability and supports for renters and vulnerable citizens.

• Maintain and improve operations and service levels.

• Invest in public safety. • Continue to build vibrant

communities and public spaces that support arts, culture and the environment.

• Meet our commitments to provide safe and healthy workplaces and public spaces

Source: 2019 Budget

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2019 – 2022 Capital Plan - $2.8 billion

Source: 2019-2022 Capital Plan, City of Vancouver

Under this Capital Plan, the Council approves in principle a borrowing limit totaling $495M.

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Financing and Debt Profile

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Legislative Framework

Vancouver Charter • Debt financing only for capital infrastructure

• City Council establishes limits for public utilities

• Electorate approves other borrowing limits

Debt servicing charges (principal & interest) for general capital program

• 100% funded from Operating Budget, refinancing not allowed

• Repayment of the City’s debentures are funded by the City of Vancouver’s ability to

levy taxes & fees.

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Keeping Debt at a Manageable Level

The City takes a careful approach to its use of debt • Used to renew and enhance public amenities and infrastructure

• While ensuring a balanced budget

As part of the City’s long-term debt strategy: • Water and sewer transitioning from debt to Pay-As-You-Go model

• Helps lower overall debt and save interest costs in the long run

Source: City of Vancouver 2018 Budget and 5-Year Financial Plan

Net Debt at a manageable level

Excludes Olympic Village debt fully repaid in 2014

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Consistent and Established Sinking Fund Debenture Program

125 125 140 110 105 90 90 85 85

120

020406080

100120140160

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 GreenBond

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Debenture Maturity Profile

For 2019, Council has approved a regular debenture issuance of up to $100M. Announcement will be made later this fall.

Issuance Year Face Amount Coupon (pa) Maturity

2009 $125M 4.90% 2 Dec 2019

2010 $125M 4.50% 1 Jun 2020

2011 $140M 3.45% 2 Dec 2021

2012 $120M 3.70% 18 Oct 2052

2013 $110M 3.75% 24 Oct 2023

2014 $105M 3.05% 16 Oct 2024

2015 $90M 2.90% 20 Nov 2025

2016 $90M 2.70% 15 Dec 2026

2017 $85M 2.85% 3 Nov 2027

2018 $85M 3.10% 21 Sep 2028

$1,075M - Total Issued Debentures (to date)

$ millions

Outstanding Debentures Cumulative Net Debt

346 411

477 543 582 611 622 617 616 598 589

138 87

118 77

121 178

246 326

418 395 494

0

200

400

600

800

1000

1200

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018F

$ millions

Sinking Fund

Net Debt

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Contacts & Additional Information Name Title Telephone Email

Patrice Impey Director of Finance and General Manager 604-873-7610 patrice.impey@vancouver.ca

Grace Cheng Director, Long-Term Financial Strategy and Planning / Deputy City Treasurer

604-871-6654 grace.cheng@vancouver.ca

Tim Leung City Treasurer 604-873-7250 tim.leung@vancouver.ca

Anthony Tia Senior Analyst 604-873-7443 anthony.tia@vancouver.ca

Websites

General http://vancouver.ca/

Greenest City Action Plan http://vancouver.ca/green-vancouver/greenest-city-action-plan.aspx

Investors Relations ((including Green Bond Framework and Second Party Opinion) https://vancouver.ca/your-government/investor-relations.aspx

Budgets and Finances http://vancouver.ca/your-government/budgets.aspx

Capital Plan for 2019-2022 https://vancouver.ca/your-government/capital-plan-2019-2022.aspx

2019 Budget and Five-Year Plan https://vancouver.ca/files/cov/2019-budget-book.pdf

Vancouver Economic Commission http://www.vancouvereconomic.com/

Vancouver Charter http://www.bclaws.ca/civix/document/id/complete/statreg/vanch_00

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