|
CITY OF VANCOUVER ADMINISTRATIVE REPORT |
Date: |
April 14, 2004 | |
Author: |
Terry Corrigan | |
Phone No.: |
604-873-7225 | |
RTS No.: |
04162 | |
CC File No.: |
1503 | |
Meeting Date: |
April 22, 2004 |
TO: |
Standing Committee on City Services and Budgets |
FROM: |
General Manager of Corporate Services/Director of Finance |
SUBJECT: |
City of Vancouver 2003 Annual Financial Report |
RECOMMENDATION
THAT Council receive for information the City of Vancouver Financial Statements for the year ended December 31, 2003.
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. The auditor must report to Council by April 30th in the following year.
PURPOSE
The 2003 Financial Statements are presented to Council for information and to fulfill the legislative requirements of the Vancouver Charter.
REPORT
Financial Highlights from the 2003 Financial Statements:
· The City ended the year with $473.5 million either in the bank or in the form of temporary investments. This was a decrease of $3.8 million from the 2002 year end position of $477.3 million largely due to interim financing of $41.7 million of capital expenditures pending the issue of debentures.
· Tight control over expenditures resulted in an operating surplus of $351,000.
· Capital expenditures totalled $147.0 million compared to $149.7 million in 2002.
· Reserves set aside for specific purposes totalled $205.3 million, a $8.6 million increase from 2002. Major draws on the reserves of approximately $22.9 million were made in 2003 to fund the acquisition of the Woodward's building and the construction of the Gastown Parkade.
· Total debt outstanding at the year end was $477.5 million. $81.4 million or 17% of that was held internally. $396.1 million or 83% was City of Vancouver debentures sold in the financial markets.
· The City has set aside $2.8 million in reserves in 2003 to fund some of its deferred payroll obligations. This brings the total set aside to meet increased employment related payments due to anticipated retirement of long term staff over the next 5 to 10 years to $6.7 million.
· Tax collection remains strong. Over the last five years, although tax levies have increased, the total tax arrears have continued to decline from over $41 million in 1999 to $34.4 million in 2003.
More detailed analysis of the financial position and the results of operations is provided in the Report of the Director of Finance in the 2003 Annual Financial Report distributed to Council under separate cover. A copy is also on file in the City Clerk's office.
The Financial Statements contained in the 2003 Annual Financial Report have been audited by the City's External Auditor KPMG LLP.
The City of Vancouver has continued to maintain a strong financial position going into 2004. The financial strength of the City reflects the careful attention to prudent financial management provided by Council and staff.
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