Vancouver City Council |
ADMINISTRATIVE REPORT
Date: April 16, 2003
Author/Local: Terry Corrigan/
604-873-7225
RTS No.03228
CC File No. 1503
Meeting date: April 24, 2003
TO: |
Standing Committee on City Services and Budgets |
FROM: |
General Manager of Corporate Services/Director of Finance |
SUBJECT: |
City of Vancouver Year 2002 Financial Statements |
RECOMMENDATION
THAT Council receive for information the City of Vancouver Financial Statements for the year ended December 31, 2002.
COUNCIL POLICY
The Director of Finance is required under Section 211 of the Vancouver Charter to advise Council on the financial position of the City. As well, Section 230 requires a firm of Chartered Accountants or Certified General Accountants to audit the accounts and transactions of the City and of every other administrative body.
PURPOSE
The 2002 Financial Statements are presented to Council for information and to fulfill the legislative requirements of the Vancouver Charter.
REPORT
Financial Highlights from the 2002 Financial Statements:
· The City ended the year with $477 million either in the bank or in the form of temporary investments. It is a $147 million increase from 2001, representing a 44% increase.
· Tight control over expenditures resulted in an operating surplus of $179,000.
· Capital expenditures totaled $149.4 million, an increase of $38.5 million over 2001, representing a 35% increase.
· Reserves set aside for specific purposes totaled $196.7 million, a $14.6 million increase from 2001.
· In April 2002, the City issued a $100 million non-callable 10 year serial debenture to finance capital projects. The average yield was 5.98%. It was the largest serial debenture issued by a Canadian municipality. It was well timed and well received by both the institutional and retail investors.
· Total debt outstanding at the year end was $546.1 million. $126.8 million or 23% of that was held internally. $419.2 million or 77% was City of Vancouver debentures sold in the financial markets.
· The City has started providing for the deferred payroll costs in 2001. $3.5 million was set aside in reserves in 2001 to fund some of the deferred payroll obligations. In 2002, another $4.2 million was provided to fund deferred overtime. Staff continue to monitor the potential payments to meet the City's obligations in this area.
· Tax collection continued to outperform previous years. The 2002 tax collection rate was at the highest ever with 99.96% of the 2002 tax levy collected in 2002. Part of the improvement is attributed to the City's Tax Installment Prepayment Program. The program was revised to offer interest on prepayments and to allow automatic withdrawal of final tax balances. The program has also been actively promoted.
Further analysis of the financial position and the results of operations is contained in the Report of the Director of Finance contained in the 2002 Financial Statements.
The Financial Statements have been audited by the City's External Auditor KPMG LLP and are distributed to Council under separate cover. A copy is also on file in the City Clerk's office.
CONCLUSION
The City of Vancouver has continued to maintain a strong financial position going into 2003. The financial strength of the City reflects the careful attention given to prudent financial management.
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