· 6 . Vernon City Council and Senior Management Contacts Canadian Award for Financial Reporting Our Mission Statement 6 . INTRODUCTORY SECTION . Message from the Mayor 7 . Message

2015 City of Vernon Annual Report Fiscal Year Ended December 31, 2015

2015 Annual Report For the Fiscal Year Ending December 31, 2015 | Vernon, British Columbia

Prepared and submitted by: Financial Services | City of Vernon

CITY HALL | 3400 30 STREET | VERNON BC, V1T 5E6 | TEL 250 545 1361 | FAX 250 545 7876 | www.vernon.ca

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Table of Contents

5 6

Vernon City Council and Senior Management Contacts Canadian Award for Financial Reporting Our Mission Statement 6

INTRODUCTORY SECTION Message from the Mayor 7 Message from the Chief Administrative Officer 8 Report from the Chief Financial Officer 9 Community Profile 10 Organizational Structure 12 Services Provided to our Residents 13 Revenue Policy Targets and Results 14 Capital Asset Deficit 14 2015-2018 Council Strategic Plan 15 Progress Report on Council’s Strategic Plan 23 Awards and Recognition 39 Committees, Boards and Commissions 40 Permissive Tax Exemptions 41 Council Remuneration and Expenses 44 Employee Remuneration and Expenses 45 Statement of Severance and Agreements 48 Consulting Fees Paid 49 Grants to Organizations 51 Payments to Vendors in Excess of $25,000 52

DIVISIONAL SUMMARIES Administrative Services 58 Corporate Services 59 Community Infrastructure and Development Services 64 Financial Services 70

74 77 80 84

Fire Rescue Services Human Resources Operation Services RCMP Services Recreation Services 86

88 FINANCIAL SECTION Consolidated Financial Statements Management’s Responsibility for the Consolidated 89

90 92 93

94 95 96

119

Financial Statements Letter Auditors Report Statement A – Consolidated Statement of Financial Position Statement B – Consolidated Statement of Operations Statement C – Consolidated Statement of Change in Net Financial Assets Statement D – Consolidated Statement of Cash Flows Notes to the Consolidated Financial Statements Exhibit 1 – Schedule of General Revenue Fund Operations Exhibit 2 – Schedule of Sewer Revenue Fund Operations 120

STATISTICAL SECTION Summary of Financial Results 122 Accumulated Surplus 123 Property Tax Revenue 124 Consolidated Revenue by Source 125 Consolidated Expense by Function 126 Consolidated Expense by Object 127 Number of Employees 128 Cost of Salaries, Wages and Benefits 129 Capital Spending 130 Capital Funding by Source 131 Long-Term Debt by Function and Sources of Funding 132 Long-Term Debt by Capacity 133 Taxable Property Assessments 134 Principal Corporate Tax Payers 135 Building Permits and Business Licences 136 Municipal Comparison 137 Population Demographics 138

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Introductory Section

Vernon City Council

VERNON CITY COUNCIL CONTACTS Akbal Mund Mayor [email protected] Juliette Cunningham Councillor [email protected] Catherine Lord Councillor [email protected] Dalvir Nahal Councillor [email protected] Scott Anderson Councillor [email protected] Brian Quiring Councillor [email protected] Bob Spiers Councillor [email protected]

SENIOR MANAGEMENT TEAM CONTACTS Will Pearce Chief Administrative Office [email protected] Kevin Bertles Director of Financial Services [email protected] Patti Bridal Director of Corporate Services [email protected] Reg Burgess RCMP, Officer In Charge [email protected] Raeleen Manjak Director of Human Resources [email protected] Kim Flick Director of Community Infrastructure & Development Services [email protected] Keith Green Fire Chief, Fire Rescue Services [email protected] Shirley Koenig Director of Operation Services [email protected] Doug Ross Director of Recreation Services [email protected]

(Back, L-R) Councillor Dalvir Nahal, Councillor Catherine Lord, Councillor Scott Anderson, Councillor Juliette Cunningham

(Front, L-R) Councillor Bob Spiers, Mayor Akbal Mund, Councillor Brian Quiring

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mailto:[email protected]








OUR MISSION STATEMENT

The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Canadian Award for Financial Reporting to the City of Vernon for its annual financial report for the fiscal year ended December 31, 2014. The Canadian Award for Financial Reporting program was established to encourage municipal governments throughout Canada to publish high quality financial reports and to provide peer recognition and technical guidance for officials preparing these reports.

In order to be awarded a Canadian Award for Financial Reporting, a government unit must publish an easily readable and efficiently organized annual report, whose contents conform to program standards. Such reports should go beyond the minimum requirements of generally accepted accounting principles and demonstrate an effort to clearly communicate the municipal government's financial picture, enhance an understanding of financial reporting by municipal governments, and address user needs.

A Canadian Award for Financial Reporting is valid for a period of one year only. We believe our current report continues to conform to the Canadian Award for Financial Reporting program requirements, and we are submitting it to GFOA.

“To deliver effective and efficient local government services that benefit our citizens, our businesses, our

environment and our future.”

Message from the Mayor

May 15, 2016

On behalf of Vernon City Council and staff, we are pleased to present the Annual Report for 2015. We continue to work hard to maintain the quality of services to all our citizens and visitors to our community.

Managing a municipal budget is, at the best of times, a challenging undertaking and one of great responsibility. Out of Vernon’s overall revenues, the taxes that we levy account for only 42.2% of our total revenues. The balance of our revenues includes user fees, sales of service and Federal and Provincial grants. Vernon’s total taxation in 2015 was $35,195,000. For our tax supported expenditures, 26.6% flows to RCMP Services, 22.9% to Operation Services, 17.1% to Government General, 14.8% to Protective Services, 6.9% to Planning and Engineering Services, 6.7% to Recreation Services and 5% to Infrastructure.

In addition to these revenues and expenditures, we collect taxes on behalf of other governmental organizations, including the Province and the Regional District of North Okanagan and remit the funds to those governments. In 2015, the amount for Vernon was $31,176,309. These statistics are displayed in the body of this report, and serve to illustrate how residents of our City contribute to other levels of government.

The revenues that are collected and expended are used to deliver a large and diverse group of services to our citizens. Some of these services are mandated by law and some are a result of the wishes and aspirations of our evolving and dynamic community and its citizens.

Mayor and Council try to interpret, and reflect, the needs and wishes of the community and to lead with policies that build the assets and programs that accomplish those needs and wishes.

We continue to provide and improve the services our citizens expect in infrastructure and provision for clean water, sewer, roads and sidewalks. The provincial government has mandated changes to our water treatment and delivery system which will require large expenditures in future years. We will approach those in a responsible, affordable manner.

The delivery of Parks and Recreation Services has changed significantly due to the implementation of Parks and Recreation Service Agreements. The citizens of Greater Vernon are seeing reduced overhead and administration costs, and greater administrative responsiveness with the City of Vernon administering more of the services.

Council will move forward with its Strategic Plan. We will work to represent and fulfil all aspects of that Strategic Plan on behalf of those we serve. We have a wonderful community and we are committed to guiding Vernon to the proud and sustainable future to which we all aspire.

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Message from the Chief Administrative Officer

May 13, 2016

Through 2015 and into 2016, Council is holding to a steady and determined course -- contain operating costs; minimum, responsible tax adjustments, and highest value for every hard earned dollar that the taxpayer entrusts to the City. For the fourth consecutive year, operating cost increases have been held to less than 1.6% (averaged over 4 years to 1.4%) while service levels and scope are maintained or in numerous cases improved.

Under Council’s explicit direction, the City of Vernon has an industry leading approach to protecting the integrity of municipal infrastructure. Building on the

City’s Asset Management Program, Council directs targeted reinvestment into roads, sidewalks, underground municipal utilities, public buildings and the City’s heavy equipment. New, more conservative municipal road standards have been approved which will contain long term costs of maintenance and replacement while reducing the cost burden on future City taxpayers.

Extensive public consultation resulted in a progressive Parks Master Plan which will guide redevelopment of local parks and open space across the City. The use of public parks facilities is evolving and the Plan makes provision for a bike skills park, pickle ball, innovative play facilities, the acquisition of key park parcels and the recommitment to public lake access points.

Electors supported the proposed twinning of Kal Tire Place. Design and construction will begin early in 2016 with completion targeted for the end of 2018. This is a Regional Partnership project supported by the City of Vernon, the District of Coldstream and Electoral Areas B & C.

An extensive facelift of the Recreation Complex was initiated late in 2015 with completion expected in June 2016. This is the most visible phase of a comprehensive reinvestment program to extend the life of this popular facility. To date, internal works have included new boilers, electrical service, water service, heating/ventilation/air conditioning, lighting and client service offices.

Vernon is a caring community. Working closely with Provincial government departments and many dedicated local agencies, Council carefully applies the tools available to local governments to facilitate housing, shelter, and support services to those in need.

The City is in a sound financial position. Year end 2015 saw positive unexpended and uncommitted balance. The City has moved from a net debt position to a net asset position. Reinvestment into municipal infrastructure is tracking towards the long term sustainable target. Municipal taxes are stable and predictable, municipal costs are well managed with sound oversight by Council. Investment is flowing back into the City and with it ….. jobs. New housing development spans the full market spectrum. From entry level affordable multi family to high-end single family homes. From new rental apartments to luxury seniors living. From assisted living to independent lifestyles. New professional services offices are being developed across the City with a particular focus along 27th Street. Vernon is a city attracting the attention of the business and investment community.

Caring, compassionate, attractive, growing, financially sound, and focused on the future.

The City of Vernon. Activate Life.

Will Pearce Chief Administrative Officer

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Message from the Chief Financial Officer May 13, 2016

Your Worship and Members of Council,

I am pleased to present the City of Vernon's 2015 Annual Report and financial statements for the year ended December 31, 2015, in accordance with sections 98 and 167 of the Community Charter and section 2 of the Financial Administration Act.

The audited financial statements, schedules, supplementary financial and statistical information have been prepared by City staff in conformity with generally accepted accounting principles as prescribed by the Public Sector Accounting Board (PSAB) of the Chartered Professional Accountants of Canada.

Management maintains systems of internal budgetary and accounting controls that provide assurance for the safeguarding of assets and the reliability of information. These systems are monitored and evaluated by management.

The audit of our financial statements was conducted by KPMG, who were appointed by Council to express an opinion as to whether the consolidated statements prepared by management present fairly the financial position of the City as at December 31, 2015.

Vernon's approach and stated goal to improving our reporting has been consistent for a number of years. In 2009, we began receiving the Government Finance Officers Association Award (GFOA) for Financial Reporting. In 2012, we began receiving the equivalent Distinguished Budget Presentation Award from GFOA. In 2012, the City implemented its new chart of accounts, reporting using the new chart of accounts has helped us gain a higher level of financial reporting and disclosure.

Operating results from 2015 saw continued improvements in some key financial indicators, such as an improvement in the City's net asset position and an increase in accumulated surplus. This is a fundamental measure of an organizations ability to meet future obligations.

An increase in financial assets of $11.27 million was accompanied by a decrease in liabilities of $2.54 million, for an overall change in accumulated surplus of $14.1 million. This change in position is due to the acquisition of capital assets in 2015 of $15.7 million.

Our infrastructure deficit rose by $8.3 million to $166,622 million (2014 was 158,321 million). This is a historical cost-based measure defined by the Public Sector Accounting Board of the unfunded, expired, useful life of our infrastructure assets. The deficit increases annually by the annual amortization charge of $11.69 million, which is not a funded item in Vernon's Financial Plan, and is a reflection of changes in our overall levels of capital reserves. Recent levels of capital infrastructure spending will continue to increase as part of the infrastructure recapitalization program, which will achieve, over a ten year period, a sustainable level of investment in our infrastructure.

Consolidated revenues were $6.8 million lower in 2015 over 2014 due to a combination of factors. The primary reason for this decrease was the gain on disposition of assets at $2.5 million, which was lower than the $11.8 million in 2014.

Consolidated expenses increased to $69.15 million — an increase of $3.16 million over 2014 levels. Increases were seen generally throughout the organization, with an increase of $1.27 million in Fire Rescue relating to retroactive contract settlements.

The financial outlook for the next five years shows signs of improvement. Revitalization tax exemption programs should continue to increase the rate of reinvestment in our community.

Kevin Bertles, CPA, CGA Chief Financial Officer

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Community Profile

Golf Vernon The Golf Club at The Rise A traditional links and coastal mountain golf experience in the orchard-lined mountains of Vernon. The Rise is designed by Freddy (Boom Boom) Couples and is one of the most scenic courses in British Columbia. www.therise.ca

Hillview Golf Course Fast. Short. Challenging. However you define golfing one thing is certain, this 18-hole course has eight lakes and even more sand traps making this a target golf course unlike any other. www.hillviewgolf.ca

Predator Ridge Resort Predator Ridge is a veritable paradise with 36 Championship holes of golf waiting to be played. Life here includes a state-of-the-art fitness centre, indoor & outdoors pools and gourmet dining featuring fresh local ingredients. www.predatorridge.com

Vernon Golf & Country Club Challenging golfers for more than 100 years, playing the Vernon Golf & Country Club is a time-honored summer tradition. www.vernongolf.com

Vernon’s Best Beaches Kin Beach – Okanagan Lake Pack up the family for a day at the beach. A grassy park, complete with jungle gym for the kiddoes, slopes to a warm beach and shallow swimming area.

Paddlewheel Park Beach - Okanagan Lake Sit beneath the shade of a swaying willow, or spread out on your blanket and watch the sailboats race by. Paddlewheel Park Beach is where warm summer memories are made.

Ellison Point Beach – Okanagan Lake Sand beaches gently bank down to western Canada’s only freshwater dive park in Otter Bay. Explore submerged relics, sunken artifacts, and vibrant underwater plant life.

Sandy Beach – Okanagan Lake Tucked into a quiet cove in Ellison Provincial Park, it’s where man’s best friend can frolic in the sand and water.

http://www.therise.ca/

http://www.hillviewgolf.ca/

http://www.predatorridge.com/

http://www.vernongolf.com/

Okanagan Indians (of

the Interior Salish)

1811 Arrival of

fur traders

1856-1878Gold rush

era

1864-1907The

ranching years

1890'sCommerci

al fruit industry begins

1892Vernon

becomes first

incorporated City in the Okanagan

Valley

1908Military heritage Vernon

takes hold

1913Economic

depression lasting

until 1923

1960's Award winning civic centre was constructed

1990'sThe City

expands its boundaries to include Silver Star Foothills, Okanagan Landing, Predator Ridge and Anderson Subdivision

Community Profile Take a Hike

Ellison Provincial Park – a spider web of trails running in and out of the trees.

Sparkling Hill Resort – sweeping views of grasslands, distant lakes and rolling mountains are your rewards on this 7 kilometre trail. Swan Lake Nature Reserve Trail – wander through waving grasslands surrounded by forested mountains and wide open sky.

Coldstream Valley Trails – hike any of the Grey Canal trails on their own, or combine all three for postcard-worthy views of the Coldstream and North Okanagan Valleys.

Turtle Mountain Trail – check out the views of Middleton Mountain, Swan Lake and Silver Star while watching raptors soar above.

Family Friendly Family Field TripsEmbark on a family field trip, and whether you point your compass toward O’Keefe Ranch, Davison Orchards or the Okanagan Science Centre, there are plenty of opportunities to disconnect from your everyday and reconnect with each other…roaming Davison Orchards on a vintage apple train, uncovering the mysteries of the universe at Okanagan Science Centre’s hands-on exhibits, or pretending you’re a pioneer for the day at O’Keefe Ranch’s summer day camps.

A Family Time Out Surrounded by water, it’s easy to enjoy a day at the beach in and around Vernon. And no matter whether you’re seeking a quiet fishing hole, a hidden cove for a family picnic or a beachside playground, Vernon is overflowing with options for a well-deserved family time out or you can avoid the sand and spend an exciting day at Atlantis Waterslides. Spread your beach blanket at Kin Beach, Paddlewheel Park or Ellison Provincial Park, three local favourites for families. You’ll find both beaches on Okanagan Lake, within a few minutes drive of Vernon’s downtown. Broad, sandy beaches gently sloping into the water, and a fully outfitted playground make Kin Beach a favourite for young families, while Ellison’s pebbled shoreline and underwater dive park (the only one in the Okanagan) draws kids of all ages to its tree-lined shores.

Family Fun in the Snow Family fun isn’t just a summer pursuit in and around Vernon – winter presents even more options to unwind and relax with the whole clan. Chill out at Silver Star Mountain Resort and discover just how much fun playing in the snow can be. Ski or snowboard snow-ghost lined glades, gather the kids for a family pick-up game of hockey, ski or snowshoe Sovereign Lake Nordic Centre, or experience our annual celebration in February, the Vernon Winter Carnival… it’s all warm family fun.

Our History

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Organizational Structure

Citizens of Vernon

Community Infrastructure &

Development

Buildings and Licensing

Economic Development and

Tourism

Current Planning

Long Range Planning

Engineering Development

Services

GIS Services

Infrastructure Management

Transportation

Corporate Services

Information Services

Legislative Services

Land Services

Communications/Grants

Bylaw and Parking

Community Policing Office

Safe Communities

RCMP Support Services/Detention

Centre

FinancialServices

Accounting

Procurement Services

Fiscal Services General

Collections to/from Others

Taxation

Grants

Public Transit

Fire Rescue Services

Fire Fighting

Fire Training Centre

Emergency Management

Human Resources

Human Resources

OccupationalHealth and Safety

Operation Services

Public Works

Fleet Services

Facility Services

Sewer Utility Services

Storm

Parks Maintenance

Water Utility Service

RCMP(Contracted

Services)

RCMP Manpower

Recreation Services

Recreation Centre

Arenas

Outdoor Pools

Property Rentals

Mayor and Council

Chief Administrative Officer (CAO)

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Services Provided to Our Residents • Act as collection authority for other taxing

jurisdictions• Airport operation• Boulevard and other landscape maintenance• Building approval and inspection• Bylaw enforcement• Cemetery operation• Drainage system maintenance• Economic development• Emergency preparedness planning and co-ordination• Engineering services• Environmental protection services• Fire/Rescue protection• Garbage and yard recycling services• Legislative (adoption of bylaws; approval of

development permits; adoption of corporatepolicies and procedures)

• Parking control and parkade operation• Parks maintenance and operation• Planning services• Policing• Public transit, including HandiDart operation• Recreation programs and facilities operation and maintenance• Safeguarding of assets• Sanitary sewer collection system operation, maintenance

and construction• Street lighting• Street, sidewalk, and lane maintenance, construction and

reconstruction• Tourism• Traffic signal operation• Water systems operation on behalf of the Regional District of

North Okanagan

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Revenue Policy Targets and Results 2015 The following revenue targets were adopted under the 2015-2019 Financial Plan and are shown with their actual results:

(in $1,000's) Accumulated Capital Capital Accumulated Capital Capital

Amortization, Reserves, Asset Deficit Amortization, Reserves, Asset Deficit Asset Beginning Beginning Beginning End End End Category of Year of Year of Year of Year of Year of Year

BUILDINGS $ 22,055 $ 5,080 $ 16,975 $ 23,693 $ 4,971 $ 18,722

VEHICLES 6,464 2,016 4,448 6,750 2,641 4,109

MISCELLANEOUS EQUIPMENT 992 11 981 1,030 22 1,008

INFORMATION TECHNOLOGY 1,831 379 1,452 2,014 442 1,572

TRANSPORTATION INFRASTRUCTURE 91,933 4,436 87,497 97,182 5,342 91,840

STORM SEWER INFRASTRUCTURE 20,147 160 19,987 21,125 160 20,965

SANITARY SEWER INFRASTRUCTURE 22,472 6,600 15,872 23,624 7,195 16,429

IRRIGATION WATER INFRASTRUCTURE 2,730 21 2,709 2,876 21 2,855

NATURAL GAS SYSTEM LEASE 8,672 273 8,399 9,395 273 9,122

$ 177,296 $ 18,976 $ 158,320 $ 187,689 $ 21,067 $ 166,622

Measure 2015 Target 2015 Actual Business to Residential Property Tax Rate Ratio 3.2 to 1 2.74 to 1 Taxation as a Proportion of Total Revenue 42.5% 42.27% Service Fees as a Proportion of Total Revenue 36.9% 42.9% Other Revenue as a Proportion of Total Revenue 19.6% 12.93% Specified Area Parcel Taxes as a Proportion of Total Revenue 1.0% 1.8% Taxation Levy for Infrastructure Projects 1.9% 1.9%

Capital Asset Deficit 2015

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Council’s Strategic Plan 2015 – 2018

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Council’s Vision Summer 2018

At its strategic planning session on February 2, 2015, Council identified the following vision for the City of Vernon, as envisioned for the summer of 2018.

The City has taken a leadership role in economic development. Investment is happening in the Waterfront, with a new park and private development. Investment is happening in the Downtown: there are fewer vacant storefronts and a new office building is opening. There are new apartments under construction, and redevelopment in the surrounding neighbourhoods provides new family homes. More jobs in the technology sector, tourism and health care are providing more opportunities for young professionals and their families to move to Vernon.

Investments in parks and recreation provide supporting reasons for young families to move to Vernon. The new ice sheet at Kal Tire Place just opened, and a new multi use park is being planned for the adjacent Kin Race Track lands. The Rec Centre and Polson Park are both being revitalized, and the Civic Arena block is being transformed into a park. More biking and walking options include the newly opened portions of the Rail Trail from Lumby Junction to Kelowna.

The City has a strong and productive relationship with the Regional District of North Okanagan (RDNO) where issues of mutual concern are addressed to the benefit of all residents. This includes resolution of the Master Water Plan, including funding and equitable rates that are supported by the public. The future of both the Art Gallery and the Museum are determined, including locations and funding. Should Coldstream, Electoral Area B or C come forward and wish to explore the benefits and costs of amalgamation, the City of Vernon would agree to support a provincially funded study.

The City focuses on efficient, front line service delivery. Tax rates have been kept at or below inflation, as have municipal operating expenses. The City actively engages and consults with the community on new initiatives, and conducts business in a transparent manner.

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Council’s Goals 2015 - 2018

Council has identified the following goals in order to achieve the vision. All of the following goals are equally important to Council. Progress reports will be regularly presented to Council for its consideration.

Facilitate Regional Collaboration Referendum to twin Kal Tire Place November 2015 Resolve specific funding and cost sharing arrangements with RDNO (including the Library, Transit, Fire Services and gateway signage)

December 2015

Establish a working group with the Okanagan Indian Band to develop a servicing plan for IR#6 (with grant funding)

June 2016

Develop a boundary extension and servicing plan for the Swan Lake Corridor to facilitate development and redevelopment

2016

Determine future locations of the Art Gallery and Museum, with consideration of a combined facility 2017 Review the Master Water Plan and associated DCC Bylaw, with due consideration for equitable rates for agricultural, residential and commercial users

2017

If Electoral Area B, Electoral Area C and/or Coldstream requests an amalgamation study, agree to support it If required

Be a Leader in Economic Development Bring forward a resolution to increase the business tax exemption from $10,000 to $50,000 to SILGA/UBCM March 2015 Develop and promote inventories of vacant commercial properties to reduce the downtown vacancy rate to 10% or less

December 2015

Engage realtors in the promotion of economic opportunities December 2015 Endorse and implement the Industrial Lands Action Plan June 2016 Support sustainable urban development by reducing off site costs and reviewing parking requirements for infill development

September 2016

Prioritize implementation of the Airport Master Plan once complete in 2016, including necessary capital improvements or upgrades

January 2017

Be a technology friendly and supportive community, and undertake initiatives to promote and support the technology sector

Annually

Cut red tape by ensuring we have a competitive development review process Annually Support sustainable neighbourhoods by implementing neighbourhood plans and the OCP Annually Prioritize capital projects in the Downtown Annually Work with community partners and the Affordable Housing Advisory Committee to create more affordable housing

Annually

Create a Vibrant Parks and Recreation System Find resolution to Kin Race Track issues December 2015 Update lake access plan, including implementation schedule and budget August 2016 Host 2017 BC Seniors Games (if awarded to Vernon) September 2017 Develop plan for Kin Park November 2017 Develop plan for Civic Arena Block Park once ice surface is removed (consider repurposing the Arena building)

December 2017

Renegotiate Recreation Agreement May 2018 Update draft Polson Park Plan and undertake improvements 2018

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Develop plan for Lakeshore Park and undertake improvements 2018 New Aquatic Centre planning Begin in 2018 New Seniors Centre planning Begin in 2018 Purchase lakeshore properties for future park As available Remove existing encroachments in lake accesses As identified

Provide Effective Protective Services VFRS 125 Anniversary celebration and bell tower restoration project unveiling May 2016 Explore expansion of VFRS fee for service agreements May 2016 Facility improvements at Station #2 December 2016 Plan and finance new RCMP building (forecast, plan, funding, grants) 2017

Deliver Efficient, Effective and Proactive Municipal Services Develop public engagement protocols to increase public (and youth) engagement (webtools, surveys, social media, resident feedback, etc.)

December 2015

Develop a plan to expand sewer services in Okanagan Landing through the investment of $2 million per year for the next ten years

2016

Develop a strategy for use of legacy funds from the BC Gas/LILO Agreement 2017 Celebrate 125 Anniversary 2017 Operational budget not to rise faster than 1.8% per annum for the period 2016 – 2018 inclusive. Annually Support the continued 1.9% infrastructure tax increase to support the Sustainable Infrastructure Plan (SIIP)

Annually

Focus investment and resources on the delivery of front line services Annually New FTE positions are to be for the delivery of services and accommodated within the organization’s overall budget increase of no more than 1.8% per annum

As identified

Create a Safe, Efficient and Sustainable Transportation Network Update Master Transportation Plan including a review of truck and hazardous materials routes and a time frame to consider the option of a highway bypass

April 2015

Implement new strategy for bus stops and shelter maintenance July 2015 Amend bylaws to implement the Integrated Transportation Framework (ITF) December 2016 Support transit oriented and mixed use development As identified

Foster Community Development through Social Planning Work with agencies and senior governments to develop and maintain comprehensive, accessible and affordable childcare

September 2016

Continue to support the Social Planning Council in the provision of social planning services to the City, including programs and initiatives to address homelessness, childcare, attainable housing, food security and neigbourhood safety

Annually

Work with community groups and agencies to support youth and senior oriented initiatives Annually Actively engage youth in stewardship opportunities Annually Identify opportunities to include youth in consultation processes As needed

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Deliverables

The following deliverables have been identified to meet Council’s goals. Progress reports will be regularly presented to Council for its consideration. The deliverables will be reviewed annually by Council.

Facilitate Regional Collaboration Establish a working group with the Okanagan Indian Band to develop a servicing plan for IR#6 (with grant funding)

June 2016

Participate in the review of Master Water Plan options with regional partners 2017 Develop a boundary extension and servicing plan for the Swan Lake Corridor with regional partners to facilitate development

2017

Commence GVW contract renegotiation January 31, 2016 as per the terms of the contract (contract expires January 31, 2018)

January 2018

Initiate Biosolids Management Plan in 2015 and recommend long term treatment of biosolids from Vernon and Kelowna as per the partnership agreement, to be negotiated prior to expiration of current agreement in 2018

2018

Explore additional regional partnerships in information technology As required

Be a Leader in Economic Development Pursue renewal of industrial Lands MOU February 2015 Develop and implement Wayfinding strategy phase one for the City Centre (parking directional signage) April 2015 Develop marketing materials for the City Centre (printed brochure and online distribution) May 2015 Report to Council with proposed approach to community branding June 2015 Report to Council identifying the proposed four year capital project list August 2015 In conjunction with the Downtown Vernon Association, create an inventory of available space in the downtown

September 2015

In conjunction with property owners, identify lands available for redevelopment in the downtown September 2015 Undertake an inventory of technology companies and related resources in Vernon to be featured on the Invest Vernon website

September 2015

Implement Wayfinding strategy phase two for the City Centre (amenities and key destinations) September 2015 Report to Council with results of the Expression of Interest process for the rear portion of the Visitor Information Centre

September 2015

Consultation, technical review and development of draft Airport Master Plan September 2015 Undertake an inventory of underutilized industrial and commercial lands within the City of Vernon (vacant lands inventory has been completed)

November 2015

Create an inventory of available building space in the City of Vernon for large industrial or commercial clients November 2015 Host annual seminar with real estate companies on promotional opportunities beyond commercial listing service

November 2015

Create business profiles of five technology companies to be featured on InvestVernon website November 2015 Finalize standard operating procedures for all planning and development applications December 2015 Report to Council with proposed parking in lieu strategy and Zoning Bylaw amendments December 2015 Project design, tendering and administration of 2015 Capital program December 2015 Design capital projects for 2016 December 2015 In conjunction with the Downtown Vernon Association, create an online map of the downtown highlighting recent developments, capital projects and redevelopment opportunities

December 2015

Actively promote City owned properties to the development community 2015-2016

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Explore possible LAS for the Waterfront (report to Council on results of preliminary consultation with property owners)

February 2016

Develop and adopt the 2016 – 2020 Tourism Strategy February 2016 Report to Council to review parking requirements in the City Centre March 2016 Report to Council to amend the Sign Bylaw to conform with City Centre Neighbourhood Plan June 2016 Promote land and building inventory on the Invest Vernon website June 2016 Working with industry, government agencies, industry associations and service providers, explore opportunities for a technology incubator in Vernon

June 2016

Adoption of rezoning amendments by Council to bring non conforming Commonage properties into compliance with the Official Community Plan

June 2016

Adoption of Airport Master Plan August 2016 Adoption of an Integrated Community Sustainability Plan December 2016 Explore additional incentives to increase redevelopment in the City Centre 2016 Report on results of customer satisfaction survey for building and development Annually Through the Economic Development Advisory Committee's task force on Technology, continue to promote, facilitate and enhance Vernon's growing technology sector

Annually

Meet with a minimum of four major or emerging employers each year to discuss locating or expanding in the downtown

Annually

Target specific companies that may be interested in locating in Vernon Annually In conjunction with industry, identify and attend technology related trade shows and events Annually

Create a Vibrant Parks and Recreation System Create policy and procedures framework to complete transition of recreation services to the City May 2015 Complete administrative transition of Recreation Services from RDNO to the City of Vernon June 2015 Submit bid for hosting 2017 BC Seniors Games June 2015 Complete public consultation and revise draft parks plan, as appropriate October 2015 Upgrade the Recreation Centre kitchen exhaust system and lighting, and replace the Aquatic Centre flooring and boards in the PV Arena

December 2015

Complete parks project list for the creation of the Parks DCC Bylaw April 2016 Begin contract negotiations prior to June 30, 2016 for sub regional parks and trails service agreement (contract expires December 31, 2016)

June 2016

Update lake access plan, including implementation schedule and associated budget August 2016 Renovate Recreation Centre bridge, entrances and lobby September 2016 Develop a Recreation Services Master Plan for facilities and programming September 2016 Develop plan for Civic Arena Block Park once ice surface is removed (consider repurposing the Arena building)

December 2017

Update and adopt the Polson Park Master Plan March 2017 Develop plan for Kin Park (on the Kin Race Track lands) 2018 Develop a plan for Lakeshore Park 2018 Purchase lakeshore properties for future park As available Remove existing encroachments in lake accesses As identified

Provide Effective Protective Services Commission Station #3 (Predator Ridge) and begin operations March 2015 Complete overall Fire response policy once Station #3 is operational April 2015 Review VFRS Fleet replacement and reserve planning and order water tender April 2015 Update Emergency Plan operations, deployment and service delivery to align with new inter-municipal agreement

June 2015

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Complete public consultation on the Community Wildfire Protection Plan (CWPP) and prepare amendments for the OCP, Rezoning and Fire Prevention Bylaws

June 2015

Inter-agency cooperative fuel modification projects with MOF and in alignment with CWPP recommendations

August 2015

Complete restructure of the RCMP ME Department 2015 Renew agreements for Vernon Volunteer Firefighters Association, IR #6 Fire Suppression (RDNO), Fire Investigation and Inspection for Lumby and Coldstream and Chlorine Ammonia Sulphur Dioxide for the Enderby water treatment plant, well and arena

2015

Complete update of the hazard risk vulnerability assessment and subsequent update of the emergency plan June 2016 Renew Fire Training Centre Inter Municipal Bylaw agreement November 2016 Restructure Bylaw Compliance, Safe Communities and Community Policing into a Protective Services Department

2015 – 2016

Increase community safety and awareness programs through new Protective Services Department 2015 – Ongoing Explore opportunities with the Justice Institute of BC for local educational partnerships, mentoring and internships

2016

Deliver specific programs for fire and fall safety to seniors at risk Annually Prepare for and complete bargaining of IAFF Collective Agreement As required

Deliver Efficient, Effective and Proactive Municipal Services Review and develop a new employee financial orientation training program March 2015 Complete feasibility analysis, initial project costs and preliminary design for OSB pre treatment facility, and tender for design build construction

April 2015 (tentative)

Submit 2015 Financial Plan final version to GFOA International, Distinguished Budget Presentation Award program(consider annually, subject to Council direction during the budget process)

June 2015

Construction of canopy for vehicles in Operations’ Yard June 2015 Develop preventative maintenance program for lift stations July 2015 Initiate/tender inflow and infiltration program study (Liquid Waste Master Plan) July 2015 Restructure Utilities to improve efficiencies and better align duties and responsibilities July 2015 Implement a new model for bus stop/shelter maintenance and advertising July 2015 Implement Tempest Prospero for accounts receivable July 2015 Refine the budget development and review process August 2015 Prioritize high risk onsite septic areas and work with residents to initiate LAS projects (Liquid Waste Master Plan)

August 2015

Report to Council with proposed policy extending City sanitary sewer system into the unserviced areas of the City (Liquid Waste Master Plan)

August 2015

Submit 2014 Annual Report to the GFOA International report review program(consider annually, subject to Council direction during the budget process)

August 2015

Design, deliver and conclude a strategic capacity development program September 2015 Report to Council with proposed amendments for the Soil Removal and Deposition Bylaw September 2015 Develop a strategic infrastructure plan for buildings, including lifecycle replacement strategy and budget implications

October 2015

Initiate/tender DCC stormwater cost share analysis (Liquid Waste Master Plan) November 2015 Sani dump reconstruction and relocation on the Civic Arena block November 2015 Report to Council with proposed amendments for the Erosion and Sediment Control Bylaw November 2015 Report to Council with proposed amendments for the Subdivision and Development Servicing Bylaw December 2015 Expand electronic payment capability to vendors December 2015 Develop public engagement protocols, including identification of new resources December 2015 Update City of Vernon Mission Statement December 2015 Continue to research and implement energy reduction initiatives December 2015

21


Develop an employee fall protection program December 2015 Review financial system software for future reporting and functionality December 2015 Continue development of financial variance reporting for division directors December 2015 Resolve issues impeding full implementation of electronic billing of utility bills December 2015 Complete the Internal Certificate of Recognition or COR Audit to maintain our standing and access to annual rebates

December 2015

Redesign City of Vernon website 2015 – 2016 Electronic Records Management System conversion of all City records 2015 – 2016 Increase resources to grants program to increase City’s access to grants 2015 – 2016 Identify corporate goals and initiatives regarding economic, environmental and social responsibility and prepare Corporate Sustainability Plan

June 2016

Update internal and external communications plan 2015 – Ongoing Consult, design and implement an exempt performance management program December 2016 Implement a bargained environment performance management program December 2017 Prepare for and complete bargaining prior to expiration of current Collective Agreement in December 2018 December 2018 Consult, design and implement a succession plan December 2018 Gain Employer of Choice designation 2018 Continue with detailed infrastructure assessment and develop replacement priority criteria based on ancillary benefit, risk assessment and risk management

Annually

Create a Safe, Efficient and Sustainable Transportation Network Report to Council with updated Master Transportation Plan and related OCP amendments April 2015 Report to Council with proposed amendments to the Traffic Bylaw August 2015 Information report to Council about the staff travel plan December 2015 Complete DCC Bylaw review of transportation projects March 2016 Amend bylaws to implement the Integrated Transportation Framework (ITF) December 2016

Foster Community Development through Social Planning Submit resolution to SILGA and UBCM regarding the need to develop and maintain comprehensive, accessible and affordable childcare

September 2016

Where possible, support community groups and agencies in the provision of youth and senior oriented initiatives

Annually

Ensure City events, such as sustainability and TDM events, actively engage youth Annually Consider the needs of youth and seniors when prioritizing sidewalk and multi use trail connections Annually Support the Social Planning Council in the provision of social planning services to the City, including programs and initiatives to address homelessness, childcare, attainable housing, food security and neighbourhood safety

As needed

Specifically identify opportunities to include youth in consultation processes As needed

22

Progress Report on Council’s Strategic Plan 2015 – 2018

January 2016

23

Council’s Goals 2015 – 2018

Facilitate Regional Collaboration Target Date Lead Division Notes Status Referendum to twin Kal Tire Place November 2015 Recreation Services Successful referendum was

held on November 28, 2015 with approval for borrowing to twin arena

Complete

Resolve specific funding and cost sharing arrangements with RDNO (including the Library, Transit, Fire Services and gateway signage)

December 2015 As Required

Establish a working group with the Okanagan Indian Band to develop a servicing plan for IR#6 (with grant funding)

June 2016 As Required

Develop a boundary extension and servicing plan for the Swan Lake Corridor to facilitate development and redevelopment

2016 As Required Currently RDNO is exploring servicing Swan Lake in partnership with Spallumcheen and OKIB; topic will be discussed as an action item in the Employment Lands Action Plan

Determine future locations of the Art Gallery and Museum, with consideration of a combined facility

2017 As Required

Review the Master Water Plan and associated DCC Bylaw, with due consideration for equitable rates for agricultural, residential and commercial users

2017 As Required

If Electoral Area B, Electoral Area C and/or Coldstream requests an amalgamation study, agree to support it

If required As Required

Be a Leader in Economic Development Target Date Lead Division Notes Status Bring forward a resolution to increase the business tax exemption from $10,000 to $50,000 to SILGA/UBCM

March 2015 Community Infrastructure &

Development

Resolution endorsed by SILGA on April 30, 2015; forwarded to UBCM for consideration at its 2015 convention, where it was not endorsed

Complete

Develop and promote inventories of vacant commercial properties to reduce the downtown vacancy rate to 10% or less

December 2015 Community Infrastructure &

Development

Complete

Engage realtors in the promotion of economic opportunities


Development

• Attend annual ICSCTradeshow in Whistler forrealtors and developers.

• Information session planned with local realtorsin May 2016

Underway

Endorse and implement the Industrial Lands Action Plan

June 2016 Community Infrastructure &

Development

Currently under development in partnership with RDNO

Underway

Support sustainable urban development by reducing off site costs and reviewing parking requirements for infill development

September 2016 Community Infrastructure &

Development

Underway

Prioritize implementation of the Airport Master Plan once complete in 2016, including necessary capital improvements or upgrades

January 2017 Community Infrastructure &

Development / Operation Services

To be determined once master plan is finalized and approved by Council

Underway

24

Be a technology friendly and supportive community, and undertake initiatives to promote and support the technology sector

Annually As Identified Attended BC Tech Show in Vancouver (January 2016); working with Co-Work Vernon, Start-up Vernon and other partners

Underway

Cut red tape by ensuring we have a competitive development review process

Annually Community Infrastructure &

Development

Continue to improve application process, internal procedures and access to information where feasible and as opportunities arise. Staff are automating electronic templates and forms to allow for faster and more consistent referrals and responses, and creating templates for development related applications.

Underway

Support sustainable neighbourhoods by implementing neighbourhood plans and the OCP

Annually As Identified Underway

Prioritize capital projects in the Downtown Annually As Identified Completed 4 Year Capital Implementation Plan focusing on capital improvements in the Downtown

Complete

Work with community partners and the Affordable Housing Advisory Committee to create more affordable housing

Annually As Identified Underway

Create a Vibrant Parks and Recreation System

Target Date Lead Division Notes Status

Find resolution to Kin Race Track issues December 2015 As Identified Underway Update lake access plan, including implementation schedule and budget

August 2016 Community Infrastructure &

Development

Underway

Host 2017 BC Seniors Games September 2017 Recreation Services Bid submitted June 2015 and Games awarded in September 2017; first planning meeting January 27, 2016

Underway

Develop plan for Kin Park November 2017 Community Infrastructure &

Development Develop plan for Civic Arena Block Park once ice surface is removed (consider repurposing the Arena building)


Development Renegotiate Recreation Agreement May 2018 Recreation Services Update draft Polson Park Plan and undertake improvements

2018 Community Infrastructure &

Development Develop plan for Lakeshore Park and undertake improvements


Development New Aquatic Centre planning Begin in 2018 Recreation Services New Seniors Centre planning Begin in 2018 Recreation Services Purchase lakeshore properties for future park

As available Corporate Services 2602 Lakeshore Road purchased June 2015. Contacted three remaining property owners (not ready to sell)

Complete at this time

Remove existing encroachments in lake accesses

As identified Corporate Services Currently addressing encroachments at Lake Access #39 (Delcliffe)

Underway

25

Provide Effective Protective Services Target Date Lead Division Notes Status VFRS 125 Anniversary celebration and bell tower restoration project unveiling

May 2016 Fire & Rescue Services

Bell tower project ready for foundry; Anniversary plans underway

Underway

Explore expansion of VFRS fee for service agreements

May 2016 Fire & Rescue Services

Facility improvements at Station #2 December 2016 Fire & Rescue Services

Grant applications being investigated

Underway

Plan and finance new RCMP building (forecast, plan, funding, grants)

2017 As Required

Deliver Efficient, Effective and Proactive Municipal Services


Develop public engagement protocols to increase public (and youth) engagement (webtools, surveys, social media, resident feedback, etc.)

December 2015 Corporate Services To be presented to the senior management team in early 2016

Underway

Develop a plan to expand sewer services in Okanagan Landing through the investment of $2 million per year for the next ten years

November 2016 Community Infrastructure &

Development

The project team is developing options for Council’s consideration for service extension

Underway

Develop a strategy for use of legacy funds from the BC Gas/LILO Agreement

2017 Financial Services

Celebrate 125 Anniversary 2017 As Required Operational budget not to rise faster than 1.8% per annum for the period 2016 – 2018 inclusive

Annually All Underway

Support the continued 1.9% infrastructure tax increase to support the Sustainable Infrastructure Plan (SIIP)


Development

Council endorsed the 4 Year Capital Plan at its Committee of the Whole Meeting of November 23, 2015

Complete at this time

Focus investment and resources on the delivery of front line services

Annually All Underway

New FTE positions are to be for the delivery of services and accommodated within the organization’s overall budget increase of no more than 1.8% per annum for the period 2016 – 2018 inclusive

As identified As Identified Underway

Create a Safe, Efficient and Sustainable Transportation Network


Update Master Transportation Plan including a review of truck and hazardous materials routes and a time frame to consider the option of a highway bypass

April 2015 Community Infrastructure &

Development

Endorsed by Council at its Regular Meeting of August 10, 2015

Complete

Implement new strategy for bus stops and shelter maintenance

July 2015 Financial Services Bus bench advertising contracts are in place; Venture Training has been engaged to update all existing bus benches and offer repair and maintenance services on an ongoing basis

Complete

Amend bylaws to implement the Integrated Transportation Framework (ITF)


Development

Project team working on Subdivision and Servicing Bylaw Schedules; waiting for adoption of Master Transportation Plan into OCP

Underway

Support transit oriented and mixed use development

As identified As Identified Underway

26

Foster Community Development through Social Planning


Work with agencies and senior governments to develop and maintain comprehensive, accessible and affordable childcare

September 2016 As Identified Currently developing SILGA/UBCM resolution in support of comprehensive affordable, accessible childcare for Council’s consideration at the February 9, 2016 Regular Meeting

Underway

Continue to support the Social Planning Council in the provision of social planning services to the City, including programs and initiatives to address homelessness, childcare, attainable housing, food security and neigbourhood safety

Annually As Identified Currently working with the Social Planning Council on matters related to attainable housing, Green Valley Motel, etc.

Underway

Work with community groups and agencies to support youth and senior oriented initiatives

Annually As Identified Assisted in the successful delivery of the Cities Fit for Children conference

Underway

Actively engage youth in stewardship opportunities


Development

The City’s Sustainability and TDM Events include many youth oriented events and award recognition

Underway

Identify opportunities to include youth in consultation processes

As needed As Identified Human Resources, Fire and Rescue Services and Community Infrastructure & Development have all actively involved youth in target programs/consultation activities

Underway

27

Council’s Deliverables 2015 – 2018

Facilitate Regional Collaboration Target Date Lead Division Notes Status Establish a working group with the Okanagan Indian Band to develop a servicing plan for IR#6 (with grant funding)

June 2016 As Required

Participate in the review of Master Water Plan options with regional partners


Development

Underway

Develop a boundary extension and servicing plan for the Swan Lake Corridor with regional partners to facilitate development

2017 As Required Currently RDNO is exploring servicing Swan Lake in partnership with Spallumcheen and OKIB; topic will be discussed as an action item in the Employment Lands Action Plan

Underway

Commence GVW contract renegotiation January 31, 2016 as per the terms of the contract (contract expires January 31, 2018)

January 2018 Operation Services

Initiate Biosolids Management Plan in 2015 and recommend long term treatment of biosolids from Vernon and Kelowna as per the partnership agreement, to be negotiated prior to expiration of current agreement in 2018

2018 Operation Services City of Kelowna in process of issuing joint RFP for Plan

Underway

Explore additional regional partnerships in information technology

As required Corporate Services • Discussion on shared phone service with Cityof Enderby

• Partnered with RDNO fora Hard Drive CrushingUnit (October 2015)

• Internet replacement(Telus/Shaw),partnership forredundancy with RDNO

• North Okanagan map will directly utilize Citydata sets for City areas,streamlining update timelags and facilitating amore efficient processfor public mappinginformation

Underway

Be a Leader in Economic Development Target Date Lead Division Notes Status Pursue renewal of industrial Lands MOU February 2015 Community

Infrastructure & Development

Endorsed by Council at its Regular Meeting of January 26, 2015

Complete

Develop and implement Wayfinding strategy phase one for the City Centre (parking directional signage)


Development

Endorsed by Council at its Regular Meeting of February 23, 2015

Complete

Report to Council with proposed approach to community branding


Development

New community branding endorsed by Council at its Regular Meeting of June 22, 2015

Complete

Report to Council identifying the proposed four year capital project list


Development

Council endorsed the 4 Year Capital Plan at its Committee of the Whole Meeting of November 23, 2015

Complete

28

In conjunction with the Downtown Vernon Association, create an inventory of available space in the downtown


Development

Endorsed by Council at its Regular Meeting of December 14, 2015

Complete

In conjunction with property owners, identify lands available for redevelopment in the downtown


Development

To be done annually in conjunction with Employment Lands Inventory Update

Underway

Undertake an inventory of technology companies and related resources in Vernon to be featured on the InvestVernon website


Development

The inventory of companies is complete; will be uploaded to website in February 2016 with company profiles

Underway

Implement Wayfinding strategy phase two for the City Centre (amenities and key destinations)


Development

Phase 2 endorsed by Council at its Regular Meeting of February 23, 2015. Signage installed late June/early July 2015

Complete

Report to Council with results of the Expression of Interest process for the rear portion of the Visitor Information Centre


Development

Received by Council at its Regular Meeting of May 25, 2015

Complete

Consultation, technical review and development of draft Airport Master Plan


Development

Draft plan presented to Council at its Committee of the Whole Meeting of December 14, 2015

Complete

Undertake an inventory of underutilized industrial and commercial lands within the City of Vernon (vacant lands inventory has been completed)


Development

To be done annually Underway

Create an inventory of available building space in the City of Vernon for large industrial or commercial clients


Development

Downtown inventory compete. Targeting March 2016 for remainder.

Underway

Create business profiles of five technology companies to be featured on InvestVernon website


Development

Two complete (Protocol Technologies and AVS)

Underway

Report to Council with proposed parking in lieu strategy and Zoning Bylaw amendments


Development

Report endorsed by Council at its Committee of the Whole Meeting of December 14, 2015; implementation of identified initiatives to take place in 2016

Complete

Project design, tendering and administration of 2015 Capital program


Development

Regular updates have been provided to Council throughout 2015 through Administration Updates on the Regular Meeting agendas

Complete

Design capital projects for 2016 December 2015 Community Infrastructure &

Development

Major capital projects are designed and currently out to tender

Underway

Actively promote City owned properties to the development community

2015-2016 Community Infrastructure &

Development

Bennet Lot – Sold for development on January 7, 2016

Underway

Explore possible LAS for the Waterfront (report to Council on results of preliminary consultation with property owners)

February 2016 Community Infrastructure &

Development Develop and adopt the 2016 – 2020 Tourism Strategy

February 2016 Community Infrastructure &

Development

Consultant has been hired and project initiated; target date of July 2016

Underway

29

In conjunction with the Downtown Vernon Association, create an online map of the downtown highlighting recent developments, capital projects and redevelopment opportunities


Development

Target date pushed back from original goal of December 2015

Underway

Report to Council to review parking requirements in the City Centre

May 2016 Community Infrastructure &

Development

Target date pushed back from original goal of March 2016

Underway

Finalize standard operating procedures for all planning and development applications

May 2016 Community Infrastructure &

Development

Target date pushed back from original goal of December 2015

Underway

Report to Council to amend the Sign Bylaw to conform with City Centre Neighbourhood Plan


Development

Underway

Promote land and building inventory on the Invest Vernon website


Development

Building inventory to be completed by March 2016.

Underway

Working with industry, government agencies, industry associations and service providers, explore opportunities for a technology incubator in Vernon


Development

Working with Start-Up Vernon, Co-work Vernon and Community Futures

Underway

Adoption of rezoning amendments by Council to bring non conforming Commonage properties into compliance with the Official Community Plan


Development

Adoption of Airport Master Plan August 2016 Community Infrastructure &

Development

Underway

Develop marketing materials for the City Centre (printed brochure and online distribution)

October 2016 Community Infrastructure &

Development

Materials currently being drafted (target date pushed back from original goal of May 2015)

Underway

Adoption of an Integrated Community Sustainability Plan


Development

Target date pushed back from original date of December 2016

Underway

Explore additional incentives to increase redevelopment in the City Centre


Development Report on results of customer satisfaction survey for building and development


Development

Next update to Council at its February 22, 2016 Regular Meeting

Underway

Host annual seminar with real estate companies on promotional opportunities beyond commercial listing service


Development

Session planned for May 2016 (target date amended from “November 2015” to “annually”)

Underway

Through the Economic Development Advisory Committee's task force on Technology, continue to promote, facilitate and enhance Vernon's growing technology sector


Development

Underway

Meet with a minimum of four major or emerging employers each year to discuss locating or expanding in the downtown


Development

Underway

Target specific companies that may be interested in locating in Vernon


Development

Underway

In conjunction with industry, identify and attend technology related trade shows and events


Development

2016 BC Technology Summit Underway

30

Create a Vibrant Parks and Recreation System


Create policy and procedures framework to complete transition of recreation services to the City

May 2015 Recreation Services Development of framework is underway and mission statement workshops have been completed

Underway

Complete administrative transition of Recreation Services from RDNO to the City of Vernon

June 2015 Recreation Services Complete

Submit bid for hosting 2017 BC Seniors Games

June 2015 Recreation Services Bid submitted June 2015 Awarded Games in September 2015

Complete

Complete public consultation and revise draft parks plan, as appropriate

October 2015 Community Infrastructure &

Development

Parks Master Plan endorsed by Council at its Regular Meeting of September 14, 2015

Complete

Upgrade the Recreation Centre kitchen exhaust system and lighting, and replace the Aquatic Centre flooring and boards in the PV Arena

December 2015 Recreation Services Receiving quotes and awarding the contracts

Underway

Complete parks project list for the creation of the Parks DCC Bylaw


Development

Underway

Begin contract negotiations prior to June 30, 2016 for sub regional parks and trails service agreement (contract expires December 31, 2016)

June 2016 Operation Services Negotiations to commence in Spring 2016

Update lake access plan, including implementation schedule and associated budget


Development

Underway

Renovate Recreation Centre bridge, entrances and lobby

September 2016 Recreation Services Work is well underway and completion of Phase 1 is anticipated for early March

Underway

Develop a Recreation Services Master Plan for facilities and programming

September 2016 Recreation Services Scope of project and RFP will be brought forward in Spring 2016

Develop plan for Civic Arena Block Park once ice surface is removed (consider repurposing the Arena building)


Development Update and adopt the Polson Park Master Plan


Development Develop plan for Kin Park (on the Kin Race Track lands)


Development Develop a plan for Lakeshore Park 2018 Community

Infrastructure & Development

Purchase lakeshore properties for future park

As available Corporate Services • 2602 Lakeshore Rd purchased June 2015

• Contacted 3 remainingproperty owners(Lakeshore) (not readyto sell)

• As available and identified in the ParksMaster Plan

Underway

Remove existing encroachments in lake accesses

As identified Corporate Services Currently addressing encroachments at Lake Access #39 (Delcliffe); working with lawyers to develop a strategy

Underway

31

Provide Effective Protective Services Target Date Lead Division Notes Status Commission Station #3 (Predator Ridge) and begin operations

March 2015 Fire & Rescue Services

• Station #3 wasoperational in January2015 and the officialopening was held May9, 2015

• Interior finishingcompleted end of2015; appliances and furniture installed,dorms nearing completion

Complete

Complete overall Fire response policy once Station #3 is operational

April 2015 Fire & Rescue Services

Data gathering in progress Underway

Review VFRS Fleet replacement and reserve planning and order water tender

April 2015 Fire & Rescue Services

Chassis constructed and delivery anticipated end of January 2016; 2015 funds requested for carry forward

Underway

Update Emergency Plan operations, deployment and service delivery to align with new inter-municipal agreement

June 2015 Fire & Rescue Services

Program and service delivery model reviewed; regional partners withdrawal notices received with bylaw amendments anticipated by early spring; VFRS to operate program to December 31, 2016

Underway

Complete public consultation on the Community Wildfire Protection Plan (CWPP) and prepare amendments for the OCP, Rezoning and Fire Prevention Bylaws


Development

Consultation completed June 30, 2015. Amendments to be forwarded to Council in early 2016

Complete

Inter-agency cooperative fuel modification projects with MOF and in alignment with CWPP recommendations

August 2015 Fire & Rescue Services

• Timing dependent on availability of Ministryof Forests crews and resources (wild fireseason)

• Hazard AssessmentReport completed forPredator Ridge

• UBCM Grant Application submitted

Underway

Complete restructure of the RCMP ME Department

2015 Corporate Services • Organizational Chartcompleted

• Implemented fourmanager positions

• New manager position approved by Council(position filled and funded in 2016 through existing operationalbudget)

• All job descriptionsunder review

• Cross training beingimplemented

• Succession planningbeing implemented

Completed Completed

Completed

Underway

Underway

32

Renew agreements for Vernon Volunteer Firefighters Association, IR #6 Fire Suppression (RDNO), Fire Investigation and Inspection for Lumby and Coldstream and Chlorine Ammonia Sulphur Dioxide for the Enderby water treatment plant, well and arena

2015 Fire & Rescue Services

• Enderby completed• Lumby agreement

completed • Coldstream agreement

nearing completion • IR#6 agreement

extended with negotiations underway

• WFA agreementextended, negotiationscompleted and agreement at legalreview

Underway

Complete update of the hazard risk vulnerability assessment and subsequent update of the emergency plan

June 2016 Fire & Rescue Services

HRVA training for staff booked for February 2016; HRVA will be specific to City of Vernon due to withdrawal of regional partners

Underway

Renew Fire Training Centre Inter Municipal Bylaw agreement

November 2016 Fire & Rescue Services

Restructure Bylaw Compliance, Safe Communities and Community Policing into a Protective Services Department

2015 – 2016 Corporate Services • Organizational Chart• Implementing a Senior

Bylaw ComplianceOfficer through existingpositions

• Community Policingand Safe Communitiesreporting to Manager,Bylaw Compliance

• Bylaw Officers assistCommunity Policing in provision of bicycle and scooter safetyprograms

• Bylaw Officers and aCommunity SafetyCoordinator will be providing a graffitieducation and prevention program in the schools this fall aspart of a grant program

• RCMP Volunteers(Citizens On Patrol)working cooperativelywith Bylaw Compliance Officers to patrol areasof concern and respond to special eventrequests such asFuntastic and CanadaDay

• Bylaw/Combined Events radio channeldeveloped with Fire -Emergency Services,RCMP Volunteers,Safety Ambassadorsand Bylaw ComplianceOfficers to allow

Completed Completed

Completed

Underway

Completed

Underway

Underway

33

improved communication between these groups

Increase community safety and awareness programs through new Protective Services Department

2015 – Ongoing Corporate Services • Develop an ongoingstronger educationpresence in the mediarelated to CommunitySafety initiatives and bylaw regulations

• Continue to seek grantfunding to allow newand improved programssuch as the graffitiprevention program

Underway

Underway

Explore opportunities with the Justice Institute of BC for local educational partnerships, mentoring and internships

2016 Fire & Rescue Services

Deliver specific programs for fire and fall safety to seniors at risk

Annually Fire & Rescue Services

“Remembering When” program initiated for seniors; Grit Box Program to address slippery sidewalks in its second year

Underway

Prepare for and complete bargaining of IAFF Collective Agreement

As required Human Resources MOU to the end of 2015 endorsed

Underway

Deliver Efficient, Effective and Proactive Municipal Services


Review and develop a new employee financial orientation training program

March 2015 Financial Services Introduction to Financial Services for Employee developed and launched. Finance 2 General Ledger Training conducted in May 2015

Complete

Complete feasibility analysis, initial project costs and preliminary design for OSB pre treatment facility, and tender for design build construction

April 2015 (tentative)

Operation Services In negotiations; Council report will be submitted pending final outcome

Underway

Submit 2015 Financial Plan final version to GFOA International, Distinguished Budget Presentation Award program(consider annually, subject to Council direction during the budget process)

June 2015 Financial Services Submitted Complete

Construction of canopy for vehicles in Operations’ Yard

June 2015 Operation Services Existing shed has been converted to vehicle garage

Complete

Develop preventative maintenance program for lift stations

July 2015 Operation Services Lift station components identified and preventative maintenance program initiated

Complete

Restructure Utilities to improve efficiencies and better align duties and responsibilities

July 2015 Operation Services Complete

Implement a new model for bus stop/shelter maintenance and advertising

July 2015 Financial Services Bus bench advertising contracts are in place; Venture Training has been engaged to update all existing bus benches and offer repair and maintenance services on an ongoing basis

Complete

Implement Tempest Prospero for accounts receivable

July 2015 Financial Services Transition of all transactions (excepting Cemetery)

Complete

34

Refine the budget development and review process

August 2015 Financial Services New expedited timetable established; new updated training package launched June 24; Financial Plan adopted January 11, 2016

Complete

Submit 2014 Annual Report to the GFOA International report review program(consider annually, subject to Council direction during the budget process)

August 2015 Financial Services Submitted Complete

Design, deliver and conclude a strategic capacity development program

September 2015 Human Resources Complete

Develop a strategic infrastructure plan for buildings, including lifecycle replacement strategy and budget implications

October 2015 Operation Services Consultant working on finalizing plan; presentation of plan to Council in Spring 2016

Underway

Sani dump reconstruction and relocation on the Civic Arena block

November 2015 Operation Services Paving and dump site complete; landscaping to be completed in spring 2016

Complete

Report to Council with proposed amendments for the Subdivision and Development Servicing Bylaw


Development

Consultant and staff working on SDSB Schedules A, B and G to date; waiting for adoption of Master Transportation Plan into OCP

Underway

Expand electronic payment capability to vendors

December 2015 Financial Services 214 Vendors currently enrolled up from 2014 (20)

Underway

Develop public engagement protocols, including identification of new resources

December 2015 Corporate Services To be presented to the senior management team in early 2016

Underway

Update City of Vernon Mission Statement December 2015 Corporate Services • Workshop with Counciland senior managementteam held on October15; Mission Statementadopted by Council atits Regular meeting ofNovember 23, 2015

• Education, awarenessand signage to be implemented

Complete

Continue to research and implement energy reduction initiatives

December 2015 Operation Services Operations staff working with Recreation staff, Grants Coordinator, BC Hydro and Fortis to identify energy initiatives

Underway

Develop an employee fall protection program

December 2015 Human Resources Augmented with roof top assessments; assessments complete; awaiting final documentation from consultant

Complete

Continue development of financial variance reporting for division directors

December 2015 Financial Services Reporting tools in place; user training completed

Complete

Resolve issues impeding full implementation of electronic billing of utility bills

December 2015 Financial Services Major issues appear to be resolved; the process still generates some rejected emails

Underway

Complete the Internal Certificate of Recognition or COR Audit to maintain our standing and access to annual rebates

December 2015 Human Resources Audit complete – Preparing a limited scope review on a targeted section

Complete

Redesign City of Vernon website 2015 – 2016 Corporate Services New website went live December 22, 2015

Complete

35

Electronic Records Management System conversion of all City records

2015 – 2016 Corporate Services • Statement of Work in place with Contractorto provide appropriatefile structure, with retentions, to conduct‘Discoveries’ in 2016 forFinance and CommunityInfrastructure & Dev,and to develop document templatesfor those two divisions

• Finance Discoveryscheduled to begin Jan 26, 2016

Underway

Increase resources to grants program to increase City’s access to grants

2015 – 2016 Corporate Services Under review Underway

Initiate/tender inflow and infiltration program study (Liquid Waste Master Plan)


Development

RFP currently being finalized (target date pushed back from original goal of July 2015)

Underway

Prioritize high risk onsite septic areas and work with residents to initiate LAS projects (Liquid Waste Master Plan)


Development

The project team is developing options for Council’s consideration for service extension that will include a framework for project prioritization (target date pushed back from original goal of August 2015)

Underway

Report to Council with proposed policy extending City sanitary sewer system into the unserviced areas of the City (Liquid Waste Master Plan)


Development

The project team is developing options for Council’s consideration for service extension (target date pushed back from original goal of August 2015)

Underway

Identify corporate goals and initiatives regarding economic, environmental and social responsibility and prepare Corporate Sustainability Plan


Development

Target date pushed back from original goal of June 2016

Underway

Update internal and external communications plan

2015 – Ongoing Corporate Services Council adopted the updated 2015-2018 Strategic Communications Plan on May 11, 2015; annual review scheduled for Jan/Feb 2016

2015 Complete

Review financial system software for future reporting and functionality

December 2016 Financial Services An expression of interest will be issued fall 2016 to identify options (target date adjusted from original goal of December 2015)

Underway

Consult, design and implement an exempt performance management program

December 2016 Human Resources Underway

Report to Council with proposed amendments for the Soil Removal and Deposition Bylaw


Development

Target date pushed back from original goal of September 2015

Report to Council with proposed amendments for the Erosion and Sediment Control Bylaw


Development

Target date pushed back from original goal of November 2015

Initiate/tender DCC stormwater cost share analysis (Liquid Waste Master Plan)

Spring 2017 Community Infrastructure &

Development

Target date pushed back from original goal of November 2015

Underway

36

Implement a bargained environment performance management program

December 2017 Human Resources

Prepare for and complete bargaining prior to expiration of current Collective Agreement in December 2018


Consult, design and implement a succession plan


Gain Employer of Choice designation 2018 Human Resources Continue with detailed infrastructure assessment and develop replacement priority criteria based on ancillary benefit, risk assessment and risk management


Development

Underway

Create a Safe, Efficient and Sustainable Transportation Network


Report to Council with updated Master Transportation Plan and related OCP amendments


Development

Master Transportation Plan endorsed by Council at its Regular Meeting of August 10, 2015; OCP amendments to Council early 2016

Underway

Report to Council with proposed amendments to the Traffic Bylaw


Development

Target date pushed back from original goal of August 2015

Information report to Council about the staff travel plan


Development

Waiting for adoption of Master Transportation Plan into OCP (target date pushed back from original goal of December 2015)

Complete DCC Bylaw review of transportation projects


Development

Waiting for adoption of Master Transportation Plan into OCP (target date pushed back from original goal of March 2016)

Amend bylaws to implement the Integrated Transportation Framework (ITF)


Development

Preliminary work being undertaken for both Subdivision and Servicing Bylaw Schedules as well as the Zoning Bylaw; waiting for adoption of Master Transportation Plan into OCP

Underway

Foster Community Development through Social Planning


Submit resolution to SILGA and UBCM regarding the need to develop and maintain comprehensive, accessible and affordable childcare


Development

Draft resolution to be provided for Council’s consideration at the February 9, 2016 Regular Meeting of Council

Underway

Where possible, support community groups and agencies in the provision of youth and senior oriented initiatives


Development

Assisted in the successful delivery of the Cities Fit for Children conference

Underway

37

Ensure City events, such as sustainability and TDM events, actively engage youth


Development

Sustainability and TDM programs continue to actively engage youth through a diversity of communications and programs. For example, the City has expanded digital media engagement to better reach youth, and sponsored sustainability related materials through the Planet Protectors education program directly within local schools.

Underway

Consider the needs of youth and seniors when prioritizing sidewalk and multi use trail connections


Development

Underway

Support the Social Planning Council in the provision of social planning services to the City, including programs and initiatives to address homelessness, childcare, attainable housing, food security and neigbourhood safety

As needed Community Infrastructure &

Development

Currently working with the Social Planning Council on matters related to attainable housing, Green Valley Motel, etc.

Underway

Specifically identify opportunities to include youth in consultation processes

As needed As needed • Human Resources:hosted threepracticumstudents fromOkanagan Collegein June 2015;presentations tovarious organizations, asrequested

• Fire Services:Offers severalprograms forchildren and youth, including“Stop Drop and Roll” school tours,“Young DriverEducation Session” , “Babysitter and Home Alone Safety” , amongmany others

• CommunityInfrastructure &Development: ongoingimplementation ofSchool Travel Plans

• CommunityInfrastructure &Development: youth were specificallyincluded in the ParksMaster Plan consultation process,and included in the Sustainability AwardsReview consultation process

Underway

38

Awards and Recognition

2015 BCEDA Chairman’s Award: Kevin Poole, City of Vernon The Chairman’s award is presented annually by the Chair of British Columbia Economic Development Association (BCEDA) to an individual who has made a significant contribution to BCEDA, the profession and economic development throughout British Columbia. Recipients of this prestigious award include John Furlong, Pat Bell, Burns Lake Recovery Team members, and many other deserving recipients. Kevin is only one of a few who have won both the Economic Developer of the Year Award (2009), and now the Chairman’s Award.

2015 AVA Digital Gold Award The City of Vernon's new website, developed by Upanup Studios, has received the AVA Digital Gold Award. The City's new site launched in late December, and was developed with a focus on improved communication, ease of navigation, functionality and City branding. The new site includes enhanced features such as interactive maps, image gallery and improved search functions. Users can also subscribe to receive City updates including notice of upcoming meetings, career opportunities and news releases.

2014 Canadian Award for Financial Reporting (CanFR) The City of Vernon received the Canadian Award for Financial Reporting (CanFR) from the Government Financial Officers Association (GFOA) -an award the City and Kevin Bertles, Director of Financial Services, has received for the last six years. The purpose of the GFOA award program is to encourage and assist Canadian local governments to go beyond the minimum requirements of generally accepted accounting principles—to prepare comprehensive annual financial reports that demonstrate the spirit of transparency and full disclosure. The award recognizes excellence in governmental accounting and financial reporting and represents a significant accomplishment by a municipal government and its management.

2015 Distinguished Budget Presentation Award Mayor Akbul Mund presented the City of Vernon Director of Financial Services, Kevin Bertles, and his staff with the Distinguished Budget Presentation Award for the City’s 2015 Financial Plan. Bertles also received the Certificate of Recognition for Budget Preparation. Both of the awards were presented on behalf of the Government Finance Officers Association

39

Committees and Boards 2015 Advisory Planning Committee Council Representative: Bob Spiers Alternate: Catherine Lord

Affordable Housing Advisory Committee Council Representative: Juliette Cunningham Council Representative Brian Quiring Alternate: Dalvir Nahal

Audit Committee Council Representative: Juliette Cunningham Council Representative: Catherine Lord Council Representative: Bob Spiers Alternate: Scott Anderson

Greater Vernon Advisory Committee Director: Mayor Mund Director: Bob Spiers Director: Juliette Cunningham Alternate: Catherine Lord Alternate: Scott Anderson

Finance Committee Council Representative: Mayor Mund Council Representative: Catherine Lord Council Representative: Bob Spiers Alternates: All Council Members

North Okanagan Regional District Director: MayorMund Director: Catherine Lord Director: Juliette Cunningham Director: Brian Quiring Alternate: Bob Spiers Alternate: Scott Anderson

Okanagan Basin Water Board Appointments to this Committee are by recommendation – Board Chair will make appointment from the members on the Board. Council Representative: Juliette Cunningham Alternate: Dalvir Nahal

Biosolids Advisory Committee Council Representative: Scott Anderson Council Representative: Bob Spiers Alternate: Dalvir Nahal

Economic Development Council Representative: Catherine Lord Alternate” Brian Quiring

Emergency Measures Policy/Planning Council Representative: Mayor Mund

External Council Appointments: Arts Council of North Okanagan Dalvir Nahal Alternate: Brian Quiring

Canada Day Committee Catherine Lord

Chamber of Commerce Liaison Catherine Lord

Downtown Vernon Association Brian Quiring

Drought Response Team Catherine Lord Alternate: Dalvir Nahal

Funtastic Sports Society Liaison Mayor Mund

Kelowna Airport Advisory Committee Mayor Mund

Library – North Okanagan Regional Library Catherine Lord Alternate: Dalvir Nahal

Liquid Waste Management Plan Public Advisory Committee Juliette Cunningham Alternate: Scott Anderson

Municipal Insurance Association Scott Anderson Alternate: Juliette Cunningham

North Okanagan Early Childhood Development Coalition – Children’s Charter Committee Juliette Cunningham

North Okanagan Regional Advisory Committee (OK College) Brian Quiring Alternate: Juliette Cunningham

O’Keefe Ranch and Historical Society Dalvir Nahal

OKIB/First Nations Liaison Mayor Mund

Regional Growth Management Committee Juliette Cunningham Alternate: Catherine Lord

Regional Agricultural Advisory Committee Scott Anderson

Ribbons of Green Trail Committee Catherine Lord

Vernon Winter Carnival Liaison Dalvir Nahal

40

DBA Name Folio Civic Address Total Exemption

Churches and Houses of Worship ALEXIS PARK CHURCH 05560.000 3906 35A ST $ 1,223 ALL SAINTS ANGLICAN 00093.000 3205 27 ST 2,509 CHRISTIAN REFORMED CHURCH OF VERNON 05480.000 3605 12 ST 1,005 CHURCH OF GOD OF PROPHECY 06464.000 4300 BELLA VISTA RD 285 EMMANUEL FELLOWSHIP BAPTIST 05287.003 3412 15 AVE 2,188 ESSENTIALIST CHURCH OF CHURCH 02651.000 2001 45 AVE 655 FAITH BAPTIST CHURCH 01975.000 3910 27A ST 3,396 FAITH BAPTIST CHURCH 02007.000 3909 28 ST 594 FIRST BAPTIST CHURCH 02997.000 1406 32 AVE 1,384 GERMAN CHURCH OF GOD 02264.007 4312 25 ST 998 JESUS CHRIST OF LATTER DAY SAINTS 03709.001 1506 35 ST 955 KNOX PRESBYTERIAN CHURCH 00866.000 3701 32 AVE 1,278 LIVING WORD LUTHERAN CHURCH 07357.550 6525 OKANAGAN LANDING RD 1,154 NEW APOLSTOLIC CHURCH 02565.020 4203 PLEASANT VALLEY RD 596 NO SIKH CULTURAL SOCIETY 03714.025 3800 COMMONAGE CRES 258 OKAN ASSEMBLY CTR FOR JEHOVAH 05287.002 1424 MISSION RD 5,808 OUR LADY OF PEACE 04092.000 3016 37 ST 683 PEACE LUTHERAN CONGREGATION 06029.001 1204 30 AVE 1,668 SALVATION ARMY COMMUNITY CHURCH 00844.005 3303 32 AVE 3,365 SLAVIC CHRISTIANS OF EVANGELIC 01913.110 2306 40 AVE 627 ST JAMES ROMAN CATHOLIC CHURCH 00517.000 2607 27 ST 2,018 ST JOSAPHATS UKRAINIAN CATHOLIC 02546.000 2210 40 AVE 923 TRINITY UNITED CHURCH 04158.100 3300 ALEXIS PARK DR 4,774 UKRAINIAN GREEK OTHODOX CHURCH 01920.010 4105 27 ST 1,729 VERNON ALLIANCE CHURCH 02245.005 4301 27 ST 1,832 VERNON ALLIANCE CHURCH 02249.000 4305 27 ST 827 VERNON ALLIANCE CHURCH 02253.000 2601 43 AVE 2,356 VERNON CHRISTADELPHIAN 06099.020 19-2200 40 ST 1,151 VERNON CHRISTIAN FELLOWSHIP 02402.000 4507 29 ST 1,716 VERNON CHRISTIAN FELLOWSHIP 04451.002 4506 29 ST 1,321 VERNON CHURCH OF CHRIST 02534.007 4107 PLEASANT VALLEY RD 336 VERNON FAMILY CHURCH 03820.005 3508 25 AVE 4,087 VERNON FULL GOSPEL TABERNACLE 07401.340 5871 OKANAGAN LANDING RD 1,310 VERNON GOSPEL CHAPEL 02563.015 4106 PLEASANT VALLEY RD 951 VERNON JAPANESE CULTURAL SOCIETY 07433.200 4895 BELLA VISTA RD 823 VERNON MUSLIM ASSOCIATION 03725.000 3414 17 AVE 667 Educational Institution PV CHRISTIAN ACADEMY 02590.001 1802A-1802 45 AVE 10,105 PV CHRISTIAN ACADEMY 02590.001 1802A-1802 45 AVE 176 ST JAMES SCHOOL 00502.000 2700 28 AVE 8,123 Social Services ABBEYFIELD HOUSE 03907.001 3511 27 AVE 3,192 ALL SAINTS ANGLICAN 00093.000 3205 27 ST 996 CANADIAN MENTAL HEALTH ASSOCIATION 00090.000 3305 27 ST 1,302 CANADIAN MENTAL HEALTH ASSOCIATION 01445.000 3100 28 AVE 16,359

Permissive Tax Exemptions

41

DBA Name Folio Civic Address Total Exemption CANADIAN MENTAL HEALTH ASSOCIATION 03384.000 3405 OKANAGAN AVE 1,284 CANADIAN MENTAL HEALTH ASSOCIATION 03821.006 3605 24 AVE 1,953 FIRST NATIONS FRIENDSHIP CTR 01353.000 2902 29 AVE 3,289 FIRST NATIONS FRIENDSHIP CTR 01355.000 2904 29 AVE 3,458 GOOD SAMARITAN CANADA 04484.005 4904 20 ST 24,776 GOOD SAMARITAN CANADA 04484.010 4900 20 ST 14,828 JOHN HOWARD SOCIETY 03840.100 2307 43 ST 5,117 KINDALE - SEATON CTR 06133.020 1340 POLSON DR 5,422 LITERACY & YOUTH INITIATIVES 01850.002 3104 37 AVE 2,795 N.O. COMMUNITY LIFE SOCIETY 02357.005 2400 46 AVE 9,132 N.O. COMMUNITY LIFE SOCIETY 02534.071 1307 40 AVE 1,015 N.O. COMMUNITY LIFE SOCIETY 02563.010 4102 PLEASANT VALLEY RD 1,273

01205.000 2802 34 ST 32,612 00963.000 3100 32 AVE 6,815 01921.000 4107 27 ST 1,025 01922.000 4109 27 ST 1,255 04048.018 3003 GATEBY PL 9,552 01552.105 3402 27 AVE 25,661 01552.110 3400 27 AVE 5,159 01382.000 3102 29 AVE 4,954 04048.040 3505 30 AVE 13,825 07801.200 9657 EASTSIDE RD 6,349 01538.000 3405 27 AVE 1,972 01539.000 3403 27 AVE 7,743 03856.001 3506 27 AVE 4,448 00060.000 3307 26 ST 1,622 04159.021 3601 36A ST 1,200 03959.000 2803 39 ST 1,342 03925.000 3601 27 AVE 3,198 04230.100 4240 ALEXIS PARK DR 0 04230.100 4240 ALEXIS PARK DR 6,981 03805.008 4305 19 AVE 14,864 03917.000 2808 35 ST 7,078 00570.001 2603 26 ST 4,074 02464.000 3502 19 ST 2,685

01826.010 2901 35 AVE 4,194 02869.000 1705 32 AVE 2,878 02868.000 1705 32 AVE 2,512

05289.004 250 ALLAN BROOKS WAY 1,719 05289.004 250 ALLAN BROOKS WAY 1,100 00635.000 2704 HWY 6 5,721

07815.000 7813-7811 OKANAGAN LANDING RD 2,205 07815.000 7813-7811 OKANAGAN LANDING RD 7,417

02366.003 2500 46 AVE 1,950 04135.010 3310 37 AVE 56,134

N.O. NEUROLOGICAL ASSOCIATION N.O. YOUTH & FAMILY SERVICES N.O. YOUTH & FAMILY SERVICES N.O. YOUTH & FAMILY SERVICES OK COMM - COLUMBUS COURT PEOPLE PLACE PEOPLE PLACE SALVATION ARMY THRIFT D/TOWN SHOP SCHUBERT CENTRE SOCIETY TRINITY UNITED - CAMP HURLBURT UPPER ROOM MISSION UPPER ROOM MISSION V & D HOSPICE SOCIETY VDACL - 26 ST GROUP HOME VDACL - 3601 36A ST GROUP HOME VDACL - 39 ST GROUP HOME VDACL - 4240 ALEXIS PARK DR VDACL - VENTURE TRAINING VDACL - VENTURE TRAINING VERNON NATIVE HOUSING PROJECT VERNON RESTHOME WOMEN'S TRANSITION HOUSE WOMEN'S TRANSITION HOUSE Cultural POWERHOUSE THEATRICAL SOCIETY VERNON MUSIC SCHOOL VERNON MUSIC SCHOOL - COACH Educational ALLAN BROOKS NATURE CTR ALLAN BROOKS NATURE CTR OK SCIENCE CENTRE & HERITAGE BLDG Recreational OK LANDING COMMUNITY ASSOCIATION OK LANDING COMMUNITY ASSOCIATION Mixed and Unique ARMY NAVY & AIRFORCE VETERANS B&G, CURLING & HALINA CLUBS

Permissive Tax Exemptions | Continued

42

DBA Name Folio Civic Address Total Exemption HERONRY 04487.047 107-2200 53 AVE 113 HERONRY 04487.048 108-2200 53 AVE 113 HERONRY 04487.049 109-2200 53 AVE 113 ST JOHNS AMBULANCE 02676.002 1905-1901 47 AVE 3,774 SCOUTS 02676.002 1905-1901 47 AVE 502 SUNNYVALE RESTHOME SOCIETY 02255.007 4306 25 ST 129 SUNNYVALE RESTHOME SOCIETY 02255.009 4308 25 ST 76 SUNNYVALE RESTHOME SOCIETY 02255.015 4304 25 ST 541 VERNON & AREA PRO LIFE SOCIETY 01067.000 3102 31 AVE 1,772 VERNON PENSIONERS - MCCOLLOUGH 01196.001 3400 COLDSTREAM AVE 393 VERNON PENSIONERS - MCCOLLOUGH 01196.001 3400 COLDSTREAM AVE 1,356 New 2012 SALVATION ARMY - NORTH THRIFT (83.6% Portion) 04490.010 1-5400 24 ST 13,840 V&D COMMUNITY LAND TRUST SOCIETY 03859.000 3502 27 AVE 15,042 New 2013 BILL'S PLACE 01941.002 2504 43 AVE 616 N.O. COMMUNITY LIFE SOCIETY 07090.036 5813 RICHFIELD PL 345 New 2014 KINDALE DEVELOPMENTAL ASSOCIATION 03831.101 1-4100 25 AVE 48 KINDALE DEVELOPMENTAL ASSOCIATION 03831.102 2-4100 25 AVE 95 KINDALE DEVELOPMENTAL ASSOCIATION 03831.106 6-4100 25 AVE 48 SALVATION ARMY - NORTH THRIFT (16.4% Portion Bldg) 04490.010 1-5400 24 ST 754 V&D CDN MENTAL HEALTH ASSOCIATION 04230.001 4206 ALEXIS PARK DR 737 V&D CDN MENTAL HEALTH ASSOCIATION 04487.034 2201 53 AVE 764 VDACL - 23RD ST VENTURE TRAINING 02672.002 4607 23 ST 950

$ 464,409

Revitalization Tax Exemption 01072.011 1 - 3126 31 AVE 2,005 01072.012 2 - 3126 31 AVE 2,381 01072.013 3 - 3126 31 AVE 590 01072.014 4 - 3126 31 AVE 4,750 01072.015 5 - 3126 31 AVE 4,579 01072.016 6 - 3126 31 AVE 4,654

0821153 BC LTD. 0821153 BC LTD. 0821153 BC LTD. 0821153 BC LTD. 0821153 BC LTD. 0821153 BC LTD. 0821153 BC LTD. 01072.017 7 - 3126 31 AVE 4,815

23,773

02036.011 1 - 4010 27 ST 4,000 02036.012 2 - 4010 27 ST 1,512

ORTHO TERRA HOLDINGSORTHO TERRA HOLDINGSORTHO TERRA HOLDINGS 02036.013 3 - 4010 27 ST 4,000

9,511

CORVELAY INC 01408.000 2801 32 ST 251 0944125 BC LTD. 02207.000 4101 32 ST 10,991 0976816 BC LTD. 02038.005 4012 27 ST 2,359

$ 46,886

Permissive Tax Exemptions | Continued

43

Council Remuneration and Expenses NAME OFFICE 2015 REMUNERATION EXPENSES* TOTAL

Mund, Akbal Mayor $ 75,801.63 $ 4,670.73 $ 80,472.36

Anderson, Scott Councillor 23,645.10 3,342.64 26,987.74

Cunningham, Juliette Councillor 24,857.24 4,818.81 29,676.05

Lord, Catherine Councillor 22,659.78 4,194.08 26,853.86

Nahal, Dalvir Councillor 22,105.98 411.93 22,517.91

Quiring, Brian** Councillor 23,958.68 45.26 24,003.94

Spiers, Robert Councillor 24,281.66 14.57 24,296.23

Total $ 217,310.07 $ 17,498.02 $ 234,808.09

*Expenses are net of tax

**MQN Architects $ 5,160.21 PV Arena dasher board replacement

451.50 Dogwood gym addition

417.38 Recreation complex

553.89 Feasibility study

$ 6,582.98

**MQN Interiors Ltd. $ 6,306.74 Recreation Complex Pool Renovations

45

EMPLOYEE NAME DIVISION GROSS EARNINGS

EXPENSES (NET OF TAX) TOTAL

Adkins, Ian J Operation Services $ 86,353 $ 1,728 $ 88,081

Baker, Barry B Operation Services 98,398 1,547 99,945

Bandy, Brett Corporate Services 97,552 86 97,638

Barker, Cindy Financial Services 94,065 1,215 95,281

Beauregard, Mike Operation Services 85,207 - 85,207

Bedard, Richard R Community Infrastructure & Development 78,713 - 78,713

Bertles, Kevin Financial Services 133,011 7,251 140,262

Blair, M. Jack Fire Rescue Services 117,025 846 117,871

Blakely, Susan E Corporate Services 81,151 1,983 83,134

Bond, Brent H Fire Rescue Services 143,289 438 143,727

Bradley, Jodie D Fire Rescue Services 104,003 463 104,466

Bridal, Patricia Corporate Services 126,279 6,241 132,520

Bridge, Sheila K Community Infrastructure & Development 76,985 - 76,985

Broderick, Craig A Community Infrastructure & Development 88,921 5,092 94,013

Cecchini, Darren Fire Rescue Services 140,973 463 141,436

Chew, Angeline S Community Infrastructure & Development 80,778 14,834 95,612

Chirkoff, Paul Operation Services 81,391 236 81,627

Clarke, Colin A Fire Rescue Services 120,056 310 120,366

Connor, Bryce P Operation Services 90,528 186 90,714

Corbett, Cleopatra Community Infrastructure & Development 80,419 4,263 84,682

Coughlin, James P Recreation Services 84,310 119 84,429

Cover, Dave Operation Services 94,726 100 94,826

Crawford, Bradley Fire Rescue Services 113,192 463 113,655

Cucheran, Robert Fire Rescue Services 119,684 335 120,019

Dobbins, Craig Operation Services 79,784 186 79,970

Donker, Barend Corporate Services 80,866 349 81,215

Doorman, John W Fire Rescue Services 112,846 46 112,893

Dowhaniuk, Mark Community Infrastructure & Development 97,842 975 98,817

Enns, Lyle Operation Services 88,630 - 88,630

Flick, Kimberly S Community Infrastructure & Development 135,413 573 135,986

Foster, Anne Marie Corporate Services 93,722 61 93,783

Fredin, Clayton C Human Resources Services 93,540 2,832 96,372

Fuhr, Daniel R Operation Services 84,423 - 84,423

Gawne, Kevin M Operation Services 88,703 186 88,888

Gilroy, Chad Fire Rescue Services 111,826 310 112,136

Gobbett, Carl Operation Services 87,275 100 87,375

Grant, James A Corporate Services 92,726 405 93,131

Green, Keith R Fire Rescue Services 139,615 2,169 141,783

Holman, Kevin J Operation Services 76,372 935 77,307

Ikesaka, Wayne Corporate Services 113,374 2,338 115,712

Employee Remuneration and Expenses

45



Imrich, Douglas R Fire Rescue Services 126,974 - 126,974

Irwin, Sean A Operation Services 81,068 225 81,293

Jolie, Tasha Fire Rescue Services 82,761 - 82,761

Juniper, Ken L Community Infrastructure & Development 78,801 10 78,811

Kanester, Clinton Corporate Services 95,578 1,234 96,812

Keenan, Trevor J Fire Rescue Services 110,393 2,293 112,686

Klymchyk, Michael Community Infrastructure & Development 78,601 100 78,701

Knuhtsen, Shawn Community Infrastructure & Development 77,267 2,450 79,717

Koenig, Shirley A Operation Services 132,417 1,178 133,594

Kozin, Serge Operation Services 80,086 1,729 81,815

Kruysifix, Derek Fire Rescue Services 107,572 82 107,654

Kryszak, Kendra S Community Infrastructure & Development 79,189 - 79,189

Kulak, Chris Fire Rescue Services 131,368 2,333 133,701

Laing-Gahr, Tanya Corporate Services 79,753 3,914 83,668

Law, Debra L Financial Services 93,280 4,813 98,093

Lindley, Dorothy Fire Rescue Services 80,810 - 80,810

Manahan, Cara-Lei Fire Rescue Services 82,276 - 82,276

Manjak, Raeleen M Human Resources Services 124,856 4,407 129,263

Mann, Reinhard Fire Rescue Services 145,183 25 145,208

Markel, Marvin A Operation Services 84,076 512 84,587

Marr, Andrew Operation Services 97,765 1,681 99,445

McGiverin, Ryan E Fire Rescue Services 108,880 - 108,880

McLuckie, Paula M Human Resources Services 90,318 3,482 93,800

Miles, Robert Community Infrastructure & Development 89,083 2,895 91,978

Mitchell, Stanley Recreation Services 79,472 - 79,472

Nadeau, Daniel D Fire Rescue Services 90,351 - 90,351

Olson, Greg W Operation Services 83,048 315 83,363

Olson, Matthew B Fire Rescue Services 110,013 25 110,038

Owen, Doug Operation Services 86,766 33 86,800

Parsons, Brian G Fire Rescue Services 111,361 - 111,361

Paulhus Walts, Michelle Fire Rescue Services 83,414 2,003 85,417

Pearce, William C Administration Services 184,497 17,783 202,280

Pearson, Joel M Fire Rescue Services 110,451 335 110,786

Poole, Kevin W Community Infrastructure & Development 108,415 7,637 116,052

Pshyk, Scott J Fire Rescue Services 109,461 25 109,486

Reich, Allyson Fire Rescue Services 107,956 2,289 110,245

Reichlin, Guido Fire Rescue Services 108,434 463 108,897

Rice, James D Operation Services 106,708 289 106,996

Rintoul, Dale M Community Infrastructure & Development 107,048 - 107,048

Robinson, Chris Fire Rescue Services 115,558 335 115,893

Roesler, Darren Operation Services 84,372 100 84,472

Ross, Doug Recreation Services 118,130 1,421 119,551

Employee Remuneration and Expenses | Continued

46



Satchell, Kris D Corporate Services 82,888 626 3,515

Sengotta, Ray G Operation Services 76,752 265 77,017

Shannon, Shannon Financial Services 84,690 707 85,397

Sibilleau, Dale R Fire Rescue Services 113,764 209 113,974

Skolrood, Lawrie Fire Rescue Services 118,345 2,022 120,366

Stoll, Michael Fire Rescue Services 111,420 463 111,883

Stranks, Ed J Community Infrastructure & Development 115,553 17 115,569

Taylor, Dennis Operation Services 88,401 1,169 89,571

Thomas, Jamie Operation Services 96,222 100 96,322

Thompson, Greg Community Infrastructure & Development 78,709 4,515 83,224

Toopitsin, Henry Operation Services 77,863 279 78,141

Tucker, Cole Operation Services 81,241 1,595 82,836

Van Dyke, William Operation Services 82,143 307 82,449

Wakefield, Dean Fire Rescue Services 129,908 75 129,983

Walker, Dan Fire Rescue Services 141,684 527 142,211

Watson, Amanda Community Infrastructure & Development 92,587 781 93,368

Wycott, Curtis C Operation Services 79,373 594 79,967

$ 9,889,321 $ 140,325 $ 10,029,645

All Other Employees $ 12,555,711 $ 115,539 $ 12,671,250

Grand Total $ 22,445,031 $ 255,864 $ 22,700,895

Employee Remuneration and Expenses | Continued

47

Statement of Severance Agreements

In accordance with the requirements of the Financial Information Act below is a schedule of Severance Agreements and equivalent's month range of compensation for the year 2015 for which severance payments commenced in 2015.

Number of Severance Agreements: One Range of equivalent's months pay: 6.5

Approved by: Dated: May 13, 2016 Director, Financial Services

Approved by Council: Dated: May 13, 2016 Mayor

Statement of Guarantees

In accordance with the requirements of the Financial Information Act below is a summary of Guarantees in effect for the year 2015. The City of Vernon has issued an irrevocable letter of credit in favour of the Agricultural Land Commission (ALC) as a guarantee to

fund works required by the ALC as a condition of a property being removed from the Agricultural Land Reserve. The property is being developed by the City. The amount of the guarantee is $716,000. As of December 31, 2015 no drawing on the letter of credit

has occurred.

Approved by: Dated: May 13, 2016 Director, Financial Services

Approved by Council: Dated: May 13, 2016 Mayor

48

CONSULTANT 2015 2014 SERVICES PROVIDED Aecom Canada $ 141,835 $ - Consultant for stormwater utility

Aeroquest Mapcon Inc - 26,206 Upgrade DTM/contours & building dripline collection

Associated Engineering BC Ltd 9,723 16,685 Engineering - various projects Associated Environmental Consultants (Summit Environmental Consultants Inc) 48,767 25,503 Environmental - various projects Baycroft, Robin - 3,900 Spring marketing design Bourcet Engineering Ltd 10,458 2,095 Engineering - Polson Park project Brisbin & Sentis Engineering Inc 11,131 - Tronson drainage and spray irrigation Cameron, Kim - 4,200 Copywriting services Canadian Professional Management Services 111,402 25,098 Consulting servics Delta T Consultants Ltd 7,302 20,076 Recreation projects Destination Think 18,375 - Tourism marketing plan Distefano Architecture Ltd 101,294 42,546 Recreation projects DMD & Associates Ltd 2,462 - Review of subdivision control bylaw EMA Consulting Ltd - 8,873 Engineering - Predator Ridge Fire Hall Empac Engineering - 2,856 Engineering - various projects eSolutions Group 12,968 - Website design for tourism Eric Haupt Forestry Consultant - 4,362 Cemetery pine beetle ESRI Canada Limited - 5,812 Vernon-ArcGIS support FH Black & Company 752 4,299 Software maintenance and support Fletcher Paine Associates 98,492 41,516 Engineering - various projects Forsite Consultants Ltd - 25,793 Community wildlife protection plan Golder Associates Ltd 17,605 21,374 Engineering - various projects Jetpro Consultants Inc 33,338 - Design airport RNAV approaches and departures Kerr Wood Leidal Services 134,348 29,439 Engineering - various projects KI Communications 15,567 - Professional media relations services Levelton Consultants Ltd 10,600 6,580 Hazardous material survey Maddox, W E 30,410 - Surveying services - various departments MacDougall Appraisals & Consulting Ltd 1,050 Appraisal services McGinty, Emma 5,250 Produce 55+ BC games bid package Meridian Rehabilitation Consulting Inc 1,420 1,761 Ergonomic Assessments MHPM Project Managers Inc 28,620 38,406 Pre-treatment facility Mid Island Safety Consulting Inc - 14,418 COR safety audit

MMM Group Ltd 35,886 Construction inspection services for capital

- projects Monaghan Engineering & Co 147,551 77,077 Engineering - various projects Monashee Surveying & Geomatics 16,668 11,293 Surveying services - various departments MQN Architects 6,583 102,373 Recreation projects MQN Interiors Ltd 6,307 - Recreation projects Naito Environmental 3,476 992 Recreation centre entrance upgrades Norelco Crane Services Ltd 6,300 - Crane inspection services Nova Trans Engineering Inc - North Okanagan transportation model Pacific Coast Information Systems 10,041 - Provision of services for Windows migration Peak Environmental Inc 2,401 1,639 Hazardous materials assessment Pin Point Surveying Ltd - 15,506 Surveying services - various projects Pinchin West Ltd - 3,071 IQA assessment Pitt, Ewen - 5,846 RCMP security interviews Quantum Graphics & Consulting 26,084 15,120 Visitor guide R355 Enterprises Ltd 43,139 152,825 Consulting and general contracting services R & A Engineering (1997) Ltd - 3,875 Recreation centre upgrades Regional District of North Okanagan - 20,000 Regional employment lands action plan Right Mind Media 3,346 9,680 Communications services Rivard & Associates 2,906 - Appraisal services Rollo & Associates 5,250 - Parking cash in lieu study

Consulting Fees Paid

49

Russell N Shortt 735 - Surveying services - various projects Schoenne & Associates 525 - Appraisal services Shatzko Engineering 57,666 25,177 Survey and consultation on various projects

Smith + Anderson Falcon Engineering Ltd 1,010 3,150 MCC and feeder replacement at recreation complex

SNC - Lavalin - 9,356 Airport pavement feasibility study Social Planning Council for the North Okanagan 60,000 45,000 Social planning services Sproing Creative (Ingenius Webdesign) 11,181 11,958 Website hosting and support Stantec Consulting Ltd 114,388 - Consulting for waterfront flood protection Stephanie Tambellini Design Studio Inc 44,061 7,199 Visitor guide and advertising Sticky Consulting 1,260 7,665 Digital insight reporting and image optimization Strategic Infrastructure Management Inc - 110,524 Contractor for sustainable infrastructure plan TDM Consulting 6,069 3,703 Surveying services - various projects Tempest 70,889 6,626 Prospero accounts receivable support Tetra Tech EBA Inc 3,061 38,471 Engineering - various projects The Web Advisors 17,735 2,731 Tourism e-mail marketing services Thompson Okanagan Tourism 21,748 87,492 Tourism campaigns and advertising UES Engineering 3,150 18,900 Engineering - various projects Upanup Studios 76,260 - Website redevelopment Urban Systems 57,013 46,448 Environmental impact study - road corridor Ursus Heritage Consulting 9,177 3,803 Assessment of Okanagan flood protection Watt Consulting Group (Boulevard Transportation) 11,419 12,192 Parking and school zone strategies Williams Engineering Canada Inc - 10,194 Engineering - various projects WSP Canada Inc (Focus Corporation) 68,871 26,437 Engineering - various projects Total $ 1,805,323 $ 1,283,497

Footnotes:

1. Consulting fees are defined for this purpose as fees paid to a professional person or firm for advisory contract services where the City was not able to obtain such services from in-house sources. Legal fees are not included. 2. All amounts reported are inclusive of applicable taxes.

Consulting Fees Paid | Continued

50

PAYEE 2015 2014 GRANT TYPE Allan Brooks Nature Centre Society $ - $ 7,500 Council Discretionary Grant Barton, Rebecca 5,000 - Heritage Restoration Grant Brenner, Manfred 2,507 - Heritage Restoration Grant Canada Day Committee 1,000 1,000 Canada Day Contribution Canada Day Fireworks Committee - 4,500 Federal Grant Funds Canada Day Fireworks Committee - 10,000 Fireworks Canada Day Show Chippendale, Sean 500 496 Heritage Retention Incentive Grant Counterpunch Boxing Club - 250 Bronze Sponsorship Amateur Boxing Tournament Csanadi, Miklos 4,749 - Heritage Restoration Grant Downtown Vernon Association 8,000 8,000 Council Discretionary Grant - Mural Maintenance Downtown Vernon Association 37,000 37,000 Downtown Landscaping Maintenance Downtown Vernon Association 8,000 - Civic Sounds Grant Family Resource Center Society for North Okanagan - 6,000 Council Discretionary Grant Fullerton, Judy 3,000 - Heritage Restoration Grant Keryluke, Debra - 378 Heritage Retention Incentive Program Morgan, Kevin 100 - Snowbuddies Program Morgan, Kristen 100 - Snowbuddies Program Nobrega, Darren 400 500 Heritage Retention Incentive Program North Okanagan Pipes And Drums 3,000 - Grants In Aid Okanagan Military Tattoo Society - 5,000 Council Discretionary Grant O'Keefe Ranch Heritage Society 150,000 150,000 Operating and Capital Grants Okanagan Regional Library 17,220 - Sunday Library Opening Grant Ribbons of Green Trails Society - 2,000 Council Discretionary Grant Schubert Centre Society - 5,371 Council Discretionary Grant Shaw, Murray and Patricia - 500 Heritage Restoration Grant United Way North Okanagan Columbia Shuswap 3,500 - Council Discretionary Grant Upper Room Mission 14,000 10,000 Community Grant Vernon & District Family History Society 770 - Council Discretionary Grant Vernon BMX Club - 2,500 Council Discretionary Grant Vernon Community Music School Association 10,000 - Council Discretionary Grant Vernon Lawn Bowling Club 8,000 - Council Discretionary Grant Vernon Rowing And Dragon Boat Club 3,000 - Council Discretionary Grant Vernon Women's Transition House Society 5,000 - Council Discretionary Grant Vernon Winter Carnival Society 10,000 10,000 Council Discretionary Grant Youth Achievement & Appreciation Festival Committee 1,400 - Council Discretionary Grant

Total Grants $296,246 $260,995

Grants to Organizations

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VENDOR NAME 2,015 2014* PURPOSE 0460463 BC Ltd $ 38,223 $ - Refund SUB00151 cash security

0696633 BC Ltd dba Precision Cleaners 68,089 85,001 Contractor for janitorial services at City Hall, RCMP and parks facilities

0888718 BC Ltd 37,124 - Refund SUB00479 cash security 1 & 2 Electric Ltd 55,871 142,723 Contractor for electrical various buildings 460463 BC Ltd 45,764 - Refund of EP000054 and DP000570 cash securities

6-4 Building Maintenance Ltd 33,137 45,796 Contractor for janitorial services for downtown washroom facilities

A & D Asphalt Solutions Ltd 314,768 332,377 Contractor for paving A & G Supply Ltd 50,416 44,458 Contractor for commercial cleaning products Aberdeen Plumbing & Heating Services Ltd - 31,175 Contractor for plumbing and heating various buildings Advantage Asset Tracking Inc 67,492 63,665 GPS units for fleet and monitoring for the year Aecom Canada Ltd 141,835 - Consultant for stormwater utility

Aeroquest Mapcon Inc - 26,206 Contract for DTM surface uplift and building drip line collection

Alfa Laval Inc - 37,744 Contractor for centrifuge rotating assembly overhaul at VWRC

Allpro Tree & Landscape Services Inc 65,367 43,678 Contractor for tree maintenance Altec Industries Ltd 139,034 - Telescopic articulating aerial device Andrew Sheret Ltd 98,631 38,164 Purchase supplies for building maintenance Anixter - 30,815 Traffic signal supplies Arborcare Tree Service Ltd 57,193 - Contractor for chipping program Associated Environmental Consultants Inc 48,767 - Environmental services and projects ATS Electric & Technical Service Ltd 67,239 37,096 Contractor for electrical and lighting for recreation centres Avenue Machinery Corp - 33,585 Purchase tractor, mower, and materials Bannister Chev-Geo-Olds Inc 35,352 28,137 Vehicle purchase BC Assessment Authority - Taxation 547,916 545,174 Transfer BC assessment taxes collected BC Hydro & Power Authority 2,109,282 2,277,909 Electric utility, pole relocates and contributions in aid BC Transit 2,121,806 1,937,309 Contractor for transit services Bell Media Inc-Ctv British Columbia 82,949 - Tourism campaign Bercum Builders Inc - 92,006 Refund cash security BP004639 and refund DCC fees BFI Canada Inc - 1,594,149 Contractor residential garbage collection and recycling Biomaxx Wastewater Solutions Inc 60,616 50,938 Purchase supplies for sanitary sewer operation Black Press Group Ltd 117,893 99,099 Local newspaper advertising Brandalliance 30,822 - Recreation and tourism goods and supplies Brandt Tractor Ltd 163,700 - Backhoe purchase and vehicle parts and maintenance Brenntag Canada Inc 86,159 76,765 Purchase chlorine products

Bry-Mac Mechanical Ltd 75,808 74,889 Mechanical contractor for HVAC and sheet metal for CSB and RCMP

Busy Bee Pest Control 35,700 33,600 Contract for weed control Canada Post Corporation 75,757 49,332 Postage Canada Safety Equipment Ltd 46,526 38,329 Purchase safety equipment Canadian National Railway Co 34,252 - Rail crossing maintenance Canadian Professional Management Services Inc 208,892 25,098 Management consulting fees

Canadian Tire 27,167 - Refund supplemental cycle #10, and employee purchase plan (EPP)

Capri Insurance 443,832 341,512 City facility and fleet insurance Caro Analytical Services 32,022 34,368 Contractor for analytical testing CDW Canada Inc 38,963 - City network and hardware upgrade Chances Bulk Unloading 31,832 40,173 Purchase road de-icing salt Chapman Mechanical Ltd 174,918 - PV arena dehumidification Civic Info British Columbia - 27,988 Civic membership dues, training and conferences CL Keith Holdings Ltd and Nechako Plains Holdings 28,837 - Road Dedication

Payments to Vendors in Excess of $25,000

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VENDOR NAME 2,015 2014* PURPOSE

Combined Mechanical Contractors Ltd 81,634 84,535 Recreation centre kitchen renovatation and water storage tanks

Commercial Aquatic Supplies - Db Perks & 36,211 - Recreation centre parts and supplies Corix Utilities Inc 72,436 73,396 Water meter reads Corix Water Products Limited Partnership 167,849 180,670 Purchase supplies and materials for water system Corporate Express 51,452 48,001 Purchase office supplies Davidson Lawyers Llp / Davidson Pringle Llp 34,627 159,362 Legal fees and land purchase Delnor Construction Inc - 53,574 Recreation centre renovation Direct Energy Marketing Ltd 87,426 145,651 Natural gas utility Distefano Architecture Ltd 101,294 42,546 Consulting for recreation centre renovation District of Coldstream 56,817 31,254 Monthly transit service Down Under Pipe Inspection 35,405 - Contractor for storm and sanitary main inspections Downtown Vernon Association (DVA) 433,333 380,503 Transfer business improvement area taxes and other Duggan Patrick O 106,969 Durning Directions & Services Ltd 166,260

- Refund 2014 tax sale property - folio #06140.165 150,417 Contractor for tourism office operation

Dynamic Asphalt Services Inc 81,001 70,902 Contractor for crack sealing E/E Electrical Enterprise Ltd - 30,767 Equipment and maintenance supplies EB Horsman & Son Ltd 128,181 159,542 Purchase inventoried parts and supplies EBA Engineering Consultants Ltd - 38,471 Engineering consultants - various projects Econolite Canada Inc 109,594 118,887 Purchase supplies for traffic control and street lights Edward Jones 27,928 - RRSP contributions on behalf of employee EMCO Corporation 45,709 64,647 Purchase supplies for various water related products EMPS Electric Motor & Pump Service Ltd - 102,227 Contractor for pump supply and service Enns, Nancy C - ESRI Canada Limited 81,510

52,248 Refund 2014 tax sale property 72,032 Contractor for software maintenance

Evergreen Building Maintenance Inc 131,999 132,229 Contractor for tree maintenance Executive Flight Centre Fuel Services Ltd 77,528 431,546 Purchase jet and aviation fuel for resale at airport First Truck Center Vancouver 111,597 - Prepayment for Fort Garry Tanker Pumper - fire rescue Fletcher Paine Associates Engineering Ltd 98,492 159,052 Engineering services - various projects Forsite Consultants Ltd - 31,463 Consulting for community wildfire protection plan Fortis BC 353,590 400,784 Natural gas utility FP Teleset Dept 30,000 35,000 Postage payment postage meter Franz, Maria Anna 75,574 - Refund 2015 tax sale property Frontline Traffic Control Services Inc 70,641 - Traffic control at various projects GCR Rail Crossings (Div of 544834 BC Ltd) - 28,718 Purchase concrete crossing material Gelter, Colette 54,740 - Cash security SUB00496 refund Gilbert Parts Depot 59,341 41,247 Purchase supplies for City fleet Gilmore Terry 25,114 - Interior finishing at fire station 3 Predator Ridge Grizzly Curb & Concrete Ltd 297,377 174,809 Contractor for curb, gutter and sidewalk projects Grounds Guys Landscape Management 435,219 507,054 Contractor for cemetery and parks maintenance Guillevin International Co 46,299 38,882 Purchase inventoried parts and supplies Habitat Systems Inc 36,251 - Mission Hill playground Hach Sales & Service Canada Ltd 56,393 52,851 Purchase supplies for water reclamation plant Handy Guys Home Renovation 63,386 - Various repair and renovation projects Hayward Gordon Ulc 29,829 - Equipment, parts and maintenance supplies Henderson Recreation Equipment Limited - 33,055 Purchase playground structure for Kiwanis Park Home Depot 45,259 Houle Electric Limited 37,801 Howard Industries (2010) Ltd 44,404 Husky Oil Marketing Company 51,622 Insurance Corporation of BC -

46,748 Employee purchase plan (EPP), employees pay 100% 44,982 Contractor for recreation centre MCC upgrade 39,030 Contractor for meals to RCMP detachment 69,326 Purchase supplies for City fleet 72,632 City fleet insurance

Inter-Mtn Enterprises Inc 33,474 - Signs, installation and mounting supplies International Crowd Management Inc (ICM) - 43,109 Contractor for security at Kal Tire Place Interprovincial Traffic Services Ltd 86,085 77,641 Purchase supplies for traffic signals IRL Truck Centre Ltd 29,883 43,033 Purchase supplies for City fleet Jetpro Consultants Inc 33,338 - Design RNAV approaches and departures at airport K E S Resource Enterprise Ltd 58,794 - Purchase railway crossing materials Kal Tire Ltd 38,125 31,579 Purchase tires for City fleet Kalamalka Security & Investigations Inc 33,322 - Security Patrol at various civic properties

Payments to Vendors in Excess of $25,000 | Continued

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VENDOR NAME 2,015 2014* PURPOSE Keith Dahlen Construction Ltd 37,483 - Refund cash security EP000112

Kelowna - City Of 675,566 734,068 Cost sharing regional bio-solids facility and wastewater contributions

Kelpin, Charles 45,260 - Refund 2015 tax sale property Kerr Wood Leidal Associates Ltd 421,012 247,951 Engineering services - various projects King Hoe Excavating Ltd 506,415 - Okanagan Landing flood protection Knight's Vacuum Services Ltd 66,517 56,705 Bio solids disposal Kon Kast Products (2005) Ltd 31,002 - Purchase Tronson and Kal Lake Road barriers KPMG LLP T4348 61,740 49,560 Financial statement audit Kubb Gerald - 84,170 Refund cash security SUB000568 Lake Water Restoration Ltd 100,396 - EQ Basin cleaning services Leko Pre Cast Ltd 37,437 - Purchase inventoried parts and supplies Lidstone & Company 58,279 147,758 Legal fees

Links Lawn & Yard Services 100,913 94,081 Contractor for landscaping and snow removal at various locations

London Drugs - 26,383 Information services supplies, and employee purchase plan (EPP), employees pay 100% for EPP

Lordco Parts Ltd 36,186 25,340 Purchase supplies for City fleet Maddocks Construction Ltd 734,583 286,082 Recreation centre front entrance renovation Maddox, W E 30,410 - Surveying

Manulife Financial 1,203,380 1,106,488 Employee benefits includes employee paid long term disability

Marjak Leasing 35,451 - Fleet vehicles purchase, leasing, and supplies Marlin Travel 29,073 34,332 Employee purchase plan (EPP), employees pay 100% for EPP Mar-Tech Underground Services 229,593 - Trenchless utility rehabilitation Medical Services Plan of BC 411,151 413,046 Employee benefits Metro Motors Ltd 76,014 - Vehicle purchases MHPM Project Managers 28,620 38,406 Project management for VWRC OSB pre treatment facility Michelin North America (Canada) Inc 40,206 - Purchase tires for City fleet Micropeer Solutions Inc 26,581 - Purchase computer hardware and infrastructure upgrade Minister of Finance 10,774,164 10,738,483 Transfer of school taxes collected MJI Contracting Inc - 30,887 Abatement and demo of house MMM Group Ltd 35,886 - Professional services and inspection on capital projects

Modern Energy Management Ltd 36,130 135,949 Contractor for mechanical repair and maintenance at recreation facilities

Monaghan Engineering & Consulting Ltd 340,835 385,313 Engineering services - various projects Mountainview Systems Inc 39,552 - Trench shoring for operations MQN Architects - 102,373 Consulting and architectural fees for recreation facilities

Municipal Insurance Assoc of BC 274,503 647,793 Liability insurance - premiums and deductibles (2013 invoice paid in 2014).

Municipal Pension Plan 3,833,022 3,441,272 Remittance employer and employee portions of pension contributions

N & T Properties Ltd - 92,338 Cash security BP003828 refund N O Columbia-Shuswap Regional Hospital 2,528,388 2,464,668 Transfer regional hospital taxes collected Northern Computer - 40,667 Purchase of VMWare servers for infrastructure upgrade Nor-Val Rentals Ltd 34,468 - Machine and tool rental Nu Gro Ltd - Direct Solutions - 25,642 Purchase turf fertilizer for parks Nufloors Total Flooring Concepts(2008) Ltd 59,880 - Flooring for recreation centre pool area, and fire hall #3 Oakcreek Golf & Turf Inc - 59,727 Purchase mower and parts Okanagan Aggregates Ltd 32,561 1,089,764 Purchase aggregate Okanagan Regional Library 1,670,689 1,664,319 Transfer regional library taxes collected Okanagan Traffic Control Professionals Inc 121,225 133,586 Contractor for traffic control services O'Keefe Ranch & Historical Society 152,700 152,637 Grant in aid Omega Communications Ltd 49,172 84,661 Contractor for communication supplies and services Open Storage Solutions 49,982 47,587 Purchase data storage Petro-Canada 401,551 496,457 Purchase fuel for City fleet Petrovalue Products Canada Inc 480,403 386,553 Purchase aviation fuel Petrusich, Joseph Richard 57,659 Postill Nixon Earthworks 454,110

- Refund tax sale property 1,437,108 Contractor for heavy duty equipment services


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Precision Construction - 91,372 Refund cash security SUB00418

Predator Ridge Limited Partnership 31,635 36,006 Snow removal, street sweeping, and refund cash security BP004860

Progressive Sealing Inc - 26,467 Purchase equipment and parts for pump repair at VWRC Progressive Waste Solutions Canada Inc 1,584,434 - Contractor residential garbage collection and recycling Quadrus 25,000 - RRSP contributions on behalf of employee Quantum Graphics & Consulting Inc 26,084 - Tourism guides R E Postill & Sons Ltd 514,204 424,131 Purchase aggregate R L Walker Contracting Ltd 682,324 - Okanagan Landing flood protection R P B Holdings Ltd - 45,877 Refund folio 04129.002 supplementals R355 Enterprises Ltd 2,563,435 3,813,516 Contractor various road improvement projects RBC Dominion Securities - 25,104 RRSP contributions on behalf of employee

Receiver General for Canada 13,626,947 12,945,760 Remittance employee source deductions and ramp contract payments

Regional District of North Okanagan 25,071,026 28,623,750 Long-term debt payments, annual regional tax requisition, transfer of water revenue and other

Restorative Justice Society of North Okanagan 44,858 44,858 Contractor for restorative justice services Ricoh Canada Inc 80,180 312,526 Purchase office equipment Riley Manufacturing 165,690 - Dasher board replacement at Pleasant Valley Arena Royal Bank 108,966 Rudnisky, Kenneth M 153,649

- RRSP contributions on behalf of employees 137,493 Refund tax sale property

S J Pasechnik & Son (1997) Ltd 255,330 846,200 Contractor for Predator Ridge Fire hall, and Adventure Bay sewer and water extension

Seal Tec Industries Ltd 180,479 179,463 Contractor for crack sealing airport Sel Surveys/Douglas R Jacobi 32,092 - Surveying Shatzko Engineering Ltd 57,666 112,427 Engineering services - various projects Sierra Landscaping Ltd 148,082 - Contractor for landscaping projects and boulevards Silver Star Ski Resort Ltd - 29,446 Employee purchase plan (EPP) employees pay 100% for EPP Social Planning Council for the North Okanagan 60,000 60,000

Contractor for crime prevention and responsible gaming initiative

Softchoice LP 26,360 26,212 Purchase of computer software Source Security & Investigations 34,378 - Security services at events Stantec Consulting Ltd 355,904 69,077 Consulting for waterfront flood protection Stephanie Tambellini Design Studio Inc 44,061 26,346 Contractor for tourism promotion and advertising Strategic Infrastructure Management Inc - 110,524 Contractor for sustainable infrastructure plan Sumas Remediation Services Inc - 129,363 Contractor for sewer rehabilitation - 20 St Summit Environmental Consultants Inc - 44,414 Contractor for environmental consulting Summit Trailer Ltd - 58,321 Purchase of equipment Summit Valve And Controls (Bc) Inc 43,775 - Parts and equipment for water reclamation centre Sunset West Mechanical Ltd - 31,466 Contractor for HVAC at various locations Super Save Disposal Inc 34,220 55,371 Contractor for garbage removal at City facilities Taylor Jordan Chafetz Barristers & Solicitors - 64,405 Legal fees TD Waterhouse Canada Inc - 42,469 RRSP contributions on behalf of employee Telus Communications Inc 156,813 150,747 Telephone utility Telus Mobility Cellular Inc 99,651 107,666 Telephone utility Telus Services Inc 88,858 113,434 Telephone utility Tempest Development Group 70,889 65,047 Contractor tempest computer software Thompson Okanagan Tourism - 87,690 Purchase advertising Timber Facility Ltd - 30,095 Refund folio 00167.000 supplemental TKI Construction Ltd 252,076 - Highway 97 cantilevered sidewalk replacement Tomko Sports Systems Inc 35,679 - Sawicki tennis court re-surfacing and sports equipment

Trafco (Canada) - 138,431 Purchase 3m opticom discriminator & supplies for traffic signals

Union of BC Municipalities (UBCM) 28,501 - Annual dues and remittance of license decal fees Upanup Studios Inc 76,260 - Website redevelopment

Urban Systems Ltd 57,013 46,448 Consultant for asset and traffic management and other studies

Vadim Computer Management Group Ltd 58,888 27,397 Contractor for Vadim software support Valley First Credit Union - 44,484 RRSP contributions on behalf of employee


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Valleyview Contracting 50,936 50,929 Contractor for roadside mowing Vernon & District Assn for Community Living 59,456 43,783 Contractor for landscaping at various areas Vernon Civic Employees Union - Local 626 232,977 234,353 Remittance of employee union dues Vernon Firefighters Association Local 1517 65,561 57,213 Remittance of firefighter union dues Vernon Line Painting Ltd 230,726 242,812 Contractor for various line painting Vernon On Site Fencing Ltd 117,246 43,496 Contract for snow removal and fencing Vernon Paving Ltd 490,139 34,030 Contractor for paving Vernon Roofing & Renovations - 32,677 Contractor for water reclamation plant roof repair Vernon Volunteer Firefighters Association - 28,513 Remittance of volunteer firefighter union dues Vimar Equipment Ltd 28,127 - Purchase of equipment parts and materials Waterhouse Environmental Services Corporation 171,290 124,894

Purchase supplies for water reclamation plant and Duteau Creek plant

Wesbild Holdings - 25,215 Refund cash security SUB00521 Wesclean Equipment & Cleaning Supplies 36,310 34,553 Purchase equipment and cleaning supplies Western Industrial Relations Ltd - 33,948 Bargaining and negotiations with CUPE Western Sports Developments Ltd - 28,092 Contractor for ice at arenas Wise Wildlife Control Service 57,344 52,206 Contractor for wildlife control at airport Wishbone Industries 27,132 - Purchase of benches and picnic tables for various parks Wolseley Waterworks Group 58,026 69,065 Purchase supplies for water reclamation plant Workers Compensation Board 277,473 215,286 Remittance of employee WCB benefits WSP Canada Inc 224,730 281,293 Engineering services and consulting - various projects Xylem Canada Co (Previously ITT Flygt) - 36,762 Purchase lateral and submersible pumps Young Anderson - 39,985 Legal fees Total 87,844,087 90,888,717 All Others Under $25,000 4,493,141 4,690,505 Grand Total Payments To Vendors $ 92,337,228 $ 95,579,222

*2014 Amounts are only those amounts appearing in the 2014 Vendor Payment Report. Vendors showing 2014 amounts as zero may have received payments from the City in 2014 but were below the threshold of $25,000.


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Divisional Summaries

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City Administration Purpose The Chief Administrative Officer (CAO) directs and coordinates the general management of business affairs of the corporation, in accordance with the bylaws, policies and plans approved by Council; to ensure the delivery of high quality services and facilities which preserve or enhance the social, economic and physical well being of the community. The CAO is responsible to ensure that innovative programs and services are developed and implemented to meet the ever changing needs of the community, while ensuring fiscal responsibility.

Highlights Administration focused on supporting development of Council's 2015-2018 Strategic Plan and initiating implementation of deliverables. Achievements over the first six months have been reported to the public and will be reported every six months with the final report card to be released October 2018. Key deliverables to date include: preparing for a fall referendum regarding twinning Kal Tire Place; positioning the City to attract investment and desirable development; moving forward with capital investment to update the Rec Plex; pursuing extension of sewer services into Okanagan Landing; consistently implement Community brand; complete Parks Master Plan, Master Transportation Plan and Airport Master Plan; conclude negotiations on multi year Collective Agreements.

Outlook The immediate focus of the 2016 Budget remains operating costs restraint and reinvestment into public municipal infrastructure in accordance with the Council endorsed Strategic Infrastructure Investment Plan. The Corporation continues to focus on investment attraction, supporting growth of existing businesses, continual improvement of the business environment and facilitating Council endorsed development. Administration operates under Council’s policy direction through a new four year Strategic Plan for the term 2015-2018 inclusive. The Strategic Plan cites Council’s priority deliverables.

Council Purpose City Council consists of six Councillors and one Mayor elected for a term of four years. The organizational purpose of an elected Councillor is to provide leadership through policy and bylaws for delivery of City services.

Highlights Council focused on fiscal restraint while protecting the scope and levels of municipal services historically enjoyed by residents and visitors to the community. Council pushed towards completion of its 2015-2018 Strategic Plan.

Outlook The community will look to Council for overall budget policy direction and strategic deliverables for the 2015-2018 term.

ADMINISTRATIVE SERVICESWill Pearce

Chief Administrative Officer [email protected]

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Corporate Services - GeneralPurpose Corporate Services provides the communication link between Council, City Divisions and the general public. Responsible for Legislative Services, Communications and Grants, Real Estate, Information Services, Bylaw Compliance, RCMP Municipal Staff, and the Safe Communities/Community Policing Departments.

Highlights In addition to the Highlights of the Current Year as outlined in each Department within Corporate Services, the first couple phases of restructuring the RCMP Municipal Employees has been completed. Completion of Council's Strategic Planning Session and various orientation tours of city facilities.

Outlook Corporate Services will continue the restructure of Protective Services Division (Bylaw, Community Policing and Safe Communities) and RCMP Municipal Employees. Electronic Records Management implementation through 2016-2018. Website Design completion in 2016; Telus project; and the focus on providing each Department within the Division guidance and support as we continue to review services and structure to gain efficiencies in our delivery of service to staff and the citizens of our community. The goals outlined within Council's Strategic Priorities workshop will be implemented over the 2015-2018 term.

Information Services Purpose Information Services (IS) provides strategic planning, management, technical and administrative support for the City of Vernon’s network infrastructure. The City’s IS Department supports 48 Servers, 28 Enterprise software products, 394 work stations, 213 mobile devices, Cisco IP based telephony solution with 286 sets, 2 PBX systems, 49 switches, and manages 44 contracts with a value of $315,000 annually.

Highlights 2015 had 2 major projects, the first was the TELUS project; the second was the Microsoft Exchange upgrade.

Outlook Information Services will be continuing to explore cost saving initiatives with infrastructure changes, partnerships and licensing reviews, while ensuring the digital infrastructure continues to be redundant and secure.

Land Services – Property Rentals Purpose A reserve has been set up to receive net income from park and facilities lands where there currently is a residential or commercial tenant. The reserves will help fund demolition of the houses, or buildings, at a future date, as directed by Council.

Outlook Land Services will manage the following parks properties that currently have residential tenants, with the assistance of a property management contractor: 2807 39 St, 2901 39 St, 2903 39 St, 2606 Lakeshore Rd; and the following recreation facility property with a residential tenant: 3311 35 Ave. Land Services will manage the commercial building with two units: 3005 31 St and 3010 31 Ave.

CORPORATE SERVICES Patti Bridal

Deputy Chief Administrative Officer, Director [email protected]

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Land Services Purpose Land Services provides management of City owned lands, including: commercial leases, residential properties, leases of spray irrigation lands, crown leases, airport land leases and tie-downs, and responsibility for negotiating the acquisition and sale of property on behalf of the City. Land Services assists Planning and Engineering in securing Statutory Right of Ways and road dedications. Land Services assists numerous City Departments with encroachments on City lands and roads. In addition, Land Services provides recommendations for Council and other City Departments, regarding legal ramifications involving real estate. Outlook Land Services will continue to provide revenue to the City through the management of City owned lands, including: commercial land and building leases, parks and facilities properties that currently have residential or commercial tenants, airport land and hangar leases and tie-down rentals, leases of spray irrigation lands, and license fees for use of City lands. Land Services will continue responsibility for negotiating the acquisition and sale of property on behalf of the City. Land Services will continue to evaluate encroachments on City lands and facilitate appropriate dispositions. In addition, recommendations will be provided and negotiations facilitated at the request of Council, and on an on-going basis for: Operations, Engineering, Planning, Facilities, Parks, Economic Development, and Administration. Targeted projects for Land Services in 2016 include: recommendations to Council regarding the development potential of City owned, Downtown properties; completion of the subdivision of the McMechan Reservoir Lands and a report to Council on disposition options; and a report to Council regarding the potential development of the Hesperia Lands.

Legislative Services Purpose The Legislative Services Department is responsible for the statutory duties of the Corporate Officer (Director of Corporate Services) including the preparation and preservation of all minute books and records of Council business, custody of City bylaws, administrative support to Council and its Committees, preparation of Council and Committee agendas, management of the City's Records Management Systems, including the Electronic Records Management System, Management of Freedom of Information (FOI) requests, and assists in conducting local government elections or referendums. The primary function of the Legislative Services Department is supporting the legislative matters and decisions of Council, retention of agreements, Land Title documents, records management, FOI management, and items requiring secure storage in the vault. The Legislative Services Department is the communications link between Council, other City Departments and the general public, providing assistance and advice to citizens with respect to Council/Committee processes, reporting procedures and decisions. Legislative Services consists of the Deputy Corporate Officer, Committee Clerk, Records Coordinator, Receptionist and Secretary/Receptionist. Highlights Initiating complex implementation of the new Electronic Records Management system throughout the organization. Assisting with orientation of new Council. Review and rewrite of Records Management Policy, FOI Policy and Draft of Privacy Impact Assessment Policy. Implementation of new records retention schedule and resulting destruction of documents as required. Progress made toward centralization of paper records storage and establishment of a scan station in records storage at City Hall. Review of processes to move to electronic communications in order to reduce postage costs and save staff time.

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Outlook Continued support of Director of Corporate Services in the legislative requirements as outlined in the Community Charter and implementing updated efficient processes as they arise. Continuing with the implementation of the Electronic Records Management System (ERMS) with Divisions. Management of an increasing number of FOI Requests, Privacy Impact Assessments and Personal Information Bank.

Protective Services

Bylaw and Parking Purpose This Department oversees the administration and compliance for approximately 40 Regulatory Bylaws, Council directives and policies within the City of Vernon. Education encouraging voluntary compliance is a Department priority. Bylaw staff provide services to other City Divisions in the area of business licensing, sign bylaw, zoning bylaw, etc. Staff patrol and maintain approximately 950 parking meters entailing 19 kilometers of sidewalk, five City owned parking lots, the Parkade, residential permit zones and signed restricted parking areas. In addition staff provide security and compliance services to the downtown core, City Parks and lake access sites. The Division also provides a community safety initiative through education and compliance related to the Parks and Public Places bylaw, provisions within the Motor Vehicle Act which include restricted parking, abandoned vehicles, and enforcement of the City's Safe Premises bylaw. Bylaw Services contracts bylaw compliance and security services to the Regional District of North Okanagan, for Sub-regional Parks (Paddlewheel Park, Kin Beach, DND lands, Marshall Field, Coldstream Creek and Kal Beach). Highlights Development of a Combined Emergency Event radio channel and protocol for use, in cooperation with VFRS, has allowed Bylaw/Community Safety to work closely and cooperatively with Emergency Services. Modification to shift scheduling to continue providing a high level of service to the public, maintain revenues and respond to increased file loads has been a priority. Highlights include; continued cooperation and communication between Bylaw and other City Divisions, continued and improved cooperation with Community Safety allowing volunteer assistance and response to neighbourhood concerns and downtown business response as part of the Protective Services team, continued and improved cooperation with Social Agencies and other Community Partners including coordinated response to issues such as the Green Valley Motel, participation in the COOL Team and continued presence in street level issues, continued cooperation with the DVA regarding downtown events, development in association with the Traffic department of a new Traffic bylaw (by the end of 2015), and development through grants of cooperative "Off the Wall" graffiti prevention and education school programs with the Community Safety Coordinator. Outlook Overall revenues from parking lots remain stable. Parking meter revenues reflect Council's customer service initiatives for free parking, extended grace periods and warning tickets. Officer presence and response in relation to Parks and Public Place bylaw enforcement (alcohol, hazardous activities, and improper behavior) both in Parks and the City Centre continues to be important to the residential customer and business community. Reorganization of the Protective Services section and cooperative initiatives allowing the sharing of resources to better educate and inform the public of community safety programs continue. The section will continue to be an active partner in the creation of a vibrant parks and recreation system as lake accesses and lakeshore properties are developed.

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Safe Communities – Crime Prevention Purpose Community Safety - Crime Prevention is responsible for programs that create and promote , through education and active community participation, a safer environment for the Citizens of Vernon.

Highlights 2015 saw an increase in the productivity of the Vernon RCMP Volunteers (previously called Citizens Patrol). This group has been engaged in additional programs and operations for the RCMP over the year and have produced a Strategic Plan that, through added education will be able to become a stronger asset to the Vernon Detachment. There has been a turnover in volunteer staff due to the RCMP Axillary Program and some leaving to join the RCMP. Additional Core Volunteer Training will be conducted in the fall to bring the volunteer compliment back up to strength.

The Crime Free Multi-Housing program continues to be expanded, although a promising new addition to the list of apartment buildings participating, made it to the third stage of the program only to lose it's manager and not completing the program. It will be a priority to work with the building owners to get it re-established for 2016. The Block Watch Program increased by 2 groups over this year and it is anticipated that a further group will be added before year end. Emergency Services and Community Safety – Crime Prevention have been coordinating education presentations for Block Watch Interface areas.

Outlook 2016 will see the Vernon RCMP Volunteers establish new programs to add to the value and productivity that they bring to the City and the RCMP. Enhanced training opportunities will be developed to bring this volunteer group in line with the newly developed Strategic Plan. Additional and innovative ways to use volunteers will be explored in order to continue to have Vernon lead BC in volunteer opportunities. The high level of professionalism sets the benchmark for all Community Policing/Community Safety groups in the Province. Recognition for Volunteer dedication and commitment to the City and the RCMP remains a priority. ICBC remains a strong partner with our RCMP Volunteer group insuring updated equipment and program training. Goals include: Certification of 2 additional Crime Free Multi-Housing buildings to the existing 6 buildings, addition of 2 Block Watch groups.

Safe Communities – Community Policing Office Purpose The Community Policing Office (CPO) manages information for over 50 programs and multiple crime prevention/reduction programs, projects and community initiatives. Staffed by 30 volunteers, the purpose of the CPO is to allow community members a place to access or gain information on core Protective Services programs such as the Citizens on Patrol, Speed Watch, Block Watch as well as gain access to information pertaining to drug awareness, bully awareness, cyber bullying prevention, personal, home and business safety, to name a few. Further, citizens can be directed to community agencies that meet their immediate needs. The CPO assists with the RCMP with distribution of Criminal Record checks and serve witness subpoenas.

Highlights The CPO continues be a hub of safety education information. Cyber bullying; drug awareness; frauds, cons and scams; personal safety for all ages and capacities and bike skill and scooter safety presentations continue to be in high demand. Participation in community and City initiatives such as Partners in Action; the COOL Team; Neighbourhood Councils such as the Centreville Council addressing issues surrounding the Gateway Shelter; the Homelessness Strategy and Harm Reduction Evaluation Action Teams; Municipal School Transportation Plan are ongoing as needed.

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Outlook The Community Policing Office will continue to offer programming to meet the challenges of our diverse community in areas such as cyber bullying and internet safety; personal & home safety; fraud, cons and scam awareness education; crime prevention/reduction for businesses; pedestrian and bike and scooter safety for all ages. The office will continue to assist the RCMP serving witness subpoenas and returning criminal record checks. The CPO is budgeting $80.00 per volunteer for volunteer appreciation. Further, volunteer liability insurance has realized a 50% reduction and has been reduced for 2016.

RCMP Services

RCMP Detention Centre Purpose The RCMP Detention Center Department ensures the safety and security of all incarcerated individuals brought into the Vernon RCMP Detachment Detention Facility. This includes persons arrested and detained by the Vernon/North Okanagan RCMP, the court system, and municipal, provincial and federal inmates. The Detention Facility staff are responsible for the routine facility maintenance, assisting with booking, fingerprinting and photographing of charged individuals and for the processing of subjects required for court and escort. -Projected number of prisoners for 2016: 2150-2250 -Daily average of prisoners: 6 -Criminal fingerprints processed: 924 per year. -Civilian fingerprints processed: 750-780 per year. Highlights Normal prisoner levels. CardScan Fingerprinting implemented March 2015 and LiveScan Fingerprinting implemented August 18th, 2015. Outlook Routine maintenance and upkeep anticipated for 2016.

RCMP Support Services Purpose The RCMP Support Services Department provides clerical and administrative support to the employees of the Vernon/North Okanagan RCMP Detachment. The support services include client services, court liaison, exhibits administrative support and records management throughout the life cycle of all police records. The support services are provided in a respectful workplace, working as a team focused on client services in support of police and public safety for our community. Highlights In accordance with Council's Strategic Priorities, the primary restructuring and reorganization of the Municipal Support Services Employees at the RCMP Detachment has been implemented and is ongoing. Outlook The restructuring and reorganization of the Municipal Support Services Employees at the RCMP Detachment will be completed in 2016. The restructuring includes the review and updating of local policies and procedures with a focus of superior, effective and efficient support service delivery to the Vernon/North Okanagan RCMP investigators and the citizens of our community.

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Community Infrastructure and Development – General Purpose Community Infrastructure Development is the umbrella for several departments engaged in the development process and realization of the City’s growth strategy as outlined in the Official Community Plan (OCP). These departments include Current Planning, Long Range Planning and Sustainability, Building and Licensing, Economic Development and Tourism (including the Municipal and Regional District Tax funds), Transportation, Engineering Development Services and Infrastructure Management.

Highlights Community Infrastructure & Development general staff provide all reporting and support services, overall project coordination and ensure the successful integration of all of the Departments within the Division. 2015 saw the development of a new Council Strategic Plan, with multiple deliverables expected of the division. Divisional work programs were reconfigured to meet the Strategic Plan.

The specific project highlights for 2015 are contained within each Department's description.

Outlook Growth and development in the City Centre Neighbourhood Plan area, adopted neighbourhood plans and neighbourhood centres are the priority for the city, as embodied in the Official Community Plan. Economic Development continues to be a key priority for the entire division. Efforts will continue to improve the development approval process and reduce costs. In addition, the Division will be implementing the adopted Parks Master Plan in 2016. The Development Cost Charges bylaw update will commence in 2016. Completion of the Airport Master Plan is expected in 2016. Asset Management is also a high priority for the Division, as the Sustainable Infrastructure Investment Program and Integrated Transportation Frameworks are implemented.

Building and Licensing Purpose Building and Licensing is a department of the Community Infrastructure Development Division and is responsible for the administration and enforcement of the B.C. Building Regulations and other applicable development regulations. The Department is primarily responsible for the review and issuance of building permits, field reviews and inspections of construction projects, and general assistance to the Citizens of Vernon. The regulatory framework is contained in Building and Plumbing Bylaw #4900. This Department is also responsible for Business Licensing.

Highlights Construction activity was steady in 2015, and is expected to exceed forecasted projections and the activity levels of 2014. As of October 23, 2015, building permit values were at $93,092,000 and housing starts were at 198 (2014 year end building permit values were $93.1 million and housing starts were 255). A number of multiple family developments are currently in the approvals process, with starts expected late in 2015 or early 2016.

3,160 business licenses have been issued as of August 31, 2015. A total of 3,141 business licenses were issued in 2014.

Outlook 2016 is expected to see a continuation of the increase in construction activity seen in 2014 and 2015. Business Licenses are projected to remain steady with no drop in numbers or revenue from 2015.

COMMUNITY INFRASTRUCTURE & DEVELOPMENT SERVICES

Kim Flick Director

[email protected]

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Current Planning Purpose Current Planning is responsible for the implementation of municipal bylaws and policies related to the planning and sustainable growth of the community. The primary responsibilities of the Department include residential land use planning and related policy development, subdivision, rezoning and development permit applications, variance applications, neighbourhood planning, affordable housing, heritage planning and community outreach. The Department works with all City divisions and regional partners in the delivery of these services. Transportation Demand Management initiatives and sustainability initiatives are also funded through this budget. Outlook Year-to-date housing starts are expected to be up from 2014 and it is expected that this will continue into 2016. Efforts continue to streamline the development approval process and to reduce costs to the developer, particularly for infill and development in the City’s target redevelopment areas, as well as development in the adopted neighbourhood plan areas in the Hillside Residential and Agricultural District. Current Planning works closely with Economic Development to ensure application processing occurs as fast as possible. TDM Projects and funding are also included in this budget, including school and staff travel planning, Bike to School/Work Week, Clean Air Day, transit promotion and Carpool Week. In 2016, events and programs will continue to build on the successes of 2015 with the intent of increasing the active travel mode share (i.e. numbers of people carpooling, taking transit, walking or biking). Sustainability initiatives in 2016 will focus on increasing the City’s digital presence to enhance youth engagement, leveraging existing partnerships and events for community outreach, and improving existing environmental programs such as the boulevard tree program. Highlights The Current Planning Department has seen significant housing starts in 2014 and 2015. Several multiple family developments are currently in the approvals process, with starts expected for late 2015 and early 2016. TDM initiatives were successful in increasing participation in all events and programs in 2015. Community and corporate partnerships with School District 22, the Downtown Vernon Association, Chamber of Commerce, Carpool.ca, Parachute, the provincial Bike to Work Society, regional partners and local businesses were key in obtaining sponsorship and grants to offset expenses. The new safety awareness and community bike map initiatives were launched and have been well received by the community. Sustainability initiatives in 2015 increased the City’s presence in social media and enhanced partnerships with local stewardship groups and the Regional District of North Okanagan. Vernon Sustainability grew its social media capacity by 70% in 2015, and engaged hundreds of community members in events such as the community seed exchange and community-wide garage sale.

Economic Development Purpose The Economic Development Department was created in 2009 and is situated within the Community Development Division. Economic Development is responsible for managing, coordinating and promoting economic development activities within the City of Vernon. The Economic Development Department also oversees the Tourism function for the City of Vernon.

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The strategic direction for the function is provided by the Economic Development Advisory Committee, which was established in 2009 and members include representatives from the Greater Vernon Chamber of Commerce, Community Futures North Okanagan, the Downtown Vernon Association along with twelve sector specific representatives that provide insight into key drivers of Vernon’s overall economy.

Outlook Despite discussions that Canada is in the midst of a recession, British Columbia is anticipated to lead the country’s growth with 2015 GDP estimated to be approximately 2%. This growth is currently being experienced in Vernon and the remainder of the Okanagan Valley, with residential and commercial development on the upswing over 2014. This trend is expected to continue into 2016. Vernon is well positioned to capitalize on this economic upswing especially with the addition of the Economic Development Planner in December 2014 that is tasked with leading commercial, industrial and institutional development applications.

For the Economic Development department, staff will continue to implement the Economic Development deliverables within Council’s Strategic Plan, work on commercial, industrial and institutional development application, coordinate the Business Retention and Expansion Program and leverage partnerships to attract new businesses and skilled labour to the community.

Highlights One of the key priorities within the 2015-18 City of Vernon’s Council Strategic Plan is to Be a Leader in Economic Development. As such, the staff priority for Economic Development was to concentrate on current development applications and implement the deliverables identified within Council’s Strategic Plan. Many of the Council projects for 2015 are either underway or have been completed. These include the completion of the new Brand (Activate Life) for the City of Vernon and the renewal of the Industrial Lands MOU, while staff work towards completing the vacancy inventory for the downtown and identification of key redevelopment sites throughout the community.

Additional projects for 2015 included the continued implementation of the Business Walks Program. In 2014, the Economic Development department led 22 volunteers to undertake the Business Walks Program that interviewed 145 businesses in Vernon. The program provides an excellent opportunity to gain insight from local businesses on challenges and opportunities pertaining specifically to their business.

Economic Development staff continue to promote Vernon investment opportunities at events such as the International Shopping Centre Conference, the Edmonton Home Show and the Fort McMurray Home Show. Staff will evaluate these shows with our partners and explore additional opportunities in 2016 specifically related to the technology sector.

Tourism Purpose The Tourism Department (Tourism Vernon) is responsible for the external promotion of the community. The function oversees the operation of the year round Visitor Information Centre (VIC) that was centralized in the City Centre in 2014.

The majority of the revenue for the Tourism function is derived from accommodation providers in the City of Vernon through the 2% Municipal Regional District Tax (MRDT), otherwise known as the Hotel Tax. As such, one of the primary goals for the function is to increase overnight stays in the community. The Tourism Advisory Committee plays an active role in ensuring the success of the function by providing advice on the annual marketing plan, insight into emerging market trends and long term strategic direction.

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Outlook The City of Vernon has secured the MRDT from March 2015 until February 2020. In August 2015, the Province of BC announced a legislation change that would allow communities to increase the hotel tax from 2% to 3%. The details and criteria, in terms of the process and required approvals, have not been made available at this time. Staff will explore this option with the Tourism Advisory Committee and our accommodation partners. With the major funding source for the function secured until 2020, staff are scheduled to complete a new Tourism Strategic Plan in early 2016 that would guide the Tourism function moving forward. Several items will be explored as part of this process including the possibility of increasing the Hotel Tax and the role of Sport and Event Tourism to drive shoulder season room revenue. The role of the Tourism Manager will continue to evolve with a focus on marketing initiatives, media relations and continued emphasis on creating partnership opportunities. Resources will focus on digital advertising, travel media, social media, informational videos and interactive mapping. In conjunction with industry partners, research programs and initiatives will continue to be developed and implemented throughout 2016. Highlights One of the key highlights for the year was the renewal of the MRDT for an additional five year term. Revenue derived from the MRDT has seen continued increases with a 22.2% increase in 2014, 7.8% in 2013 and 16.8% in 2012. This upward trend is continuing in 2015 with a year to date (end of August) increase of 9.8%. In 2014, a total of $535,746.89 was collected, which equates to $26.8 million in total room revenue. Since the VIC was centralized in June 2014, the centre has experienced a year over year increase of 15% in terms of total visitors and 17% in total parties. Staff continue to work with the Tourism Advisory Committee on creative ways to increase the visibility of the centre in the future. Major projects for 2015 included a major revamp of the Tourism Vernon website, increased media relations that have leveraged well over $1 million in equivalent advertising value, a redesign of the Vernon Visitor Guide and increased partnerships with major stakeholders and attractions such as Predator Ridge Resort, Sparkling Hill Resort and Silver Star Resort. 2015 also marked a renewed attempt to collect pertinent data from our accommodation providers through our accommodation survey. In partnership with Destination BC, staff have secured approximately 10 partners that have begun to share information monthly to assist staff in identifying priority markets, trends and overall occupancy rates, thereby providing accommodators benchmarking information.

Engineering Purpose Engineering Services are responsible for the implementation of municipal services and bylaws related to infrastructure planning for the Capital Works Program and development works as well as provision of GIS services. The Division is also responsible for management of budgeting and construction of the Capital Works Program. The Division works closely with many of the other Divisions to provide these services in an efficient and timely manner. The mandate of the Engineering Department is to hold paramount the safety, welfare and quality of life of the public and the protection of the environment through fiscally responsible management of public infrastructure.

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Outlook • Continue supporting the Official Community Plan (OCP) priorities through implementation of the

Strategic Infrastructure Investment Plan (SIIP)• Amendment of Subdivision and Development Standards Bylaw to reflect the SIIP, Integrated

Transportation Framework (ITF) and Master Transportation Plan.• Amendment of Development Cost Charge Bylaw to reflect the SIIP, ITF and Master

Transportation Plan.• Continue to implement the Transit Strategy, Pedestrian and Bike Master Plan, Road Network Plan

and Transportation Demand Management (TDM) Strategy• Continue to implement TDM initiatives such as iWalk, Bike to Work Week, work place and school

travel plans.• Continue to implement the Liquid Waste Management Plan strategies.• Support further sewer extensions through local service areas and municipal fees.• Continue supporting the revitalization of replacing failing and failed linear infrastructure through

the successful delivery of the 2016 Capital Works Program as approved by Council and completethe 2015 Capital Works Program.

• Continue implementing transportation safety initiatives through joint ventures with ICBC.

Highlights • Completed phase 2 of the three phase Capital Works project in Pleasant Valley Road• Completed final phase of the flood protection works in Marshall Field.• Report to Council the proposed four year capital project list which encourages redevelopment

through strategic phasing of replacing failing and failed linear infrastructure.• Stage III of the Liquid Waste Management Plan was approved by the Province.• Initiation of several Council endorsed Liquid Waste Management Plan strategies in coordination

with Operations.• Applied for several grants totaling over $3 million, including Build Canada ($2,456,667), Canada

150 ($488,994), Asset Management Planning ($10,000), Water Quality and Conservation($30,000), Bike to Work ($5,000) and ICBC ($19,700).

• Completed stage 4 of 4 stages of the Asset Management initiative which is the Stormwater UtilityFeasibility Study.

• Worked with several areas (Smith Rd., Claremont and Scott Rd.) in the Okanagan Landing toinitiate Sewer Local Area Service Bylaws.

• The Master Transportation Plan update was completed, endorsed and is ready for adoption intothe OCP.

Geographical Information Systems Purpose The Geographical Information Services (GIS) Department maintains and provides spatial based information to City staff, consultants, government and public organizations as well as the public to assist them in making informed decisions. The GIS Department also provides development and support of the CityWorks.

Maintenance Management System, a software application used to generate and process service requests and work orders for the Operations Division. The GIS Department has been a major component of developing the Sustainable Infrastructure Investment Program (SIIP). GIS will also support the Sustainable Infrastructure Investment Plan by continually integrating asset condition information into the completed program, adding new infrastructure and deleting assets as they are upgraded or replaced. Having an accurate inventory of all of our linear and non-linear assets through GIS is the foundation for a SIIP.

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Highlights • GIS provided input and support to the Engineering Department for the 2016 Capital Planning

Process, Four Year Capital Planning Process, Liquid Waste Management Plan Strategy Action Item implementation, grant applications and the SIIP.

• Continued progress to update and maintain spatial data in GIS format • Continued increase in the use of GIS support for various City functions – including

Neighbourhood Plans, SIIP, Parks Master Plan, Airport Master Plan, Emergency Management, School Travel Plans, Ped and Bike Master Plan, and Transportation Master Plan Update including the Transit Plan.

• Update of Asset Management Policy including engagement. • Continued growth in the use of Cityworks - supporting Service Requests and Work Orders for

Operations related functions Outlook

• Data capture, maintenance, retrieval and analysis • Provide support for bylaw amendments (Subdivision and Development Servicing Bylaw and

Zoning Bylaw Schedule B) • Integration of non-linear assets • GIS training and support • Cityworks support and continued implementation • RDNO coordination • Maintain SIIP

Long Range Planning Purpose Long Range Planning is responsible for the development of the Official Community Plan (OCP), neighbourhood plans, parks planning and other growth management initiatives. The Department actively engages all sectors of the community in the development of these plans and policies. The Department also manages OCP amendment and boundary extension applications. Sustainability initiatives and the City’s contract with the Social Planning Council is also administered through this Department. Highlights 2015 saw the second phase of consultation for the Parks Master Plan take place, followed by a revised plan that was presented to Council for its consideration in September. It was also the first year that a Parks capital budget was available under the new parks structure, which allowed for the construction of a number of projects, including a new playground for Mission Hill Park, resurfacing of the Sawicki Park tennis courts and other projects. A draft Airport Master Plan was developed - a process that included Council, stakeholder and community consultation. Outlook With the Parks Master Plan expected to be adopted in 2015, implementation of the plan in 2016 will include the completion of the Parks DCC Bylaw, the review of the Lake Access Plan and initiation of the Polson Park Master Plan. The draft Airport Master Plan, targeted for Fall 2015 is anticipated to be adopted in 2016, with implementation items to follow. An Integrated Community Sustainability Plan is targeted for completion in 2016, with work on the Corporate Sustainability Plan to continue. Other initiatives will focus on the implementation of the OCP and neighbourhood plans.

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Finance – Accounting Purpose The Financial Services - Accounting Department is responsible for all matters of financial administration for the City of Vernon, specifically:

• Billing and revenue collection of City services and revenue sources • Payment for goods and services • Cemetery administration • Safekeeping of securities • Investments of reserved funds • Risk management claims administration • Grant funding • Financial planning and reporting • Debt administration • Safeguarding Assets

Highlights The 2015 budget was awarded the GFOA Distinguished Financial Reporting Award. Current projections of interest from short term investments is projected to exceed the 2015 estimates. Outlook A realignment of duties in the Revenue staff follows a retirement of our long time cashier. A planned review process of core financial software systems will take place in 2016, as the current software provider is requiring a cash investment for its next upgrade.

Procurement Services Purpose Procurement Services is a department within Financial Services. This team provides professional, responsible and cost effective procurement services which include; acquisition of goods and services, asset investment recovery and the management of Central Stores. Services are provided to all user groups across the organization and support both Capital & Operational requirements. Highlights 2015 was another busy year for Procurement Services. PO commitments to July 31, 2015 ($13,784,915.00) resulted in a 6% increase from the comparative period in 2014. It is expected this result will remain consistent for the balance of the year. Highlights of events include participation in and finalization of the AGLG Audit, transition of the BMO purchase card to the BC Government program and to the One Card chip conversion. Expanded annual pre-qualification services and advanced electronic filing system to be compatible with MOA and Laserfiche requirements. With the upcoming hiring of the new part-time clerical support position, the department looks forward to providing improved value added services to internal customers, increased vendor development / management activities and improved productivity. The upcoming purchase of a storage container dedicated to hold the balance of the Federal Government Emergency Hospital items, will re-purpose approximately 400 Sq. ft. of warehouse floor space. The space

FINANCIAL SERVICES Kevin Bertles

Director [email protected]

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will be used to stock new inventory that will be beneficial to the operations group. As well some of the space can be used for a “potential” tool crib pilot project. Outlook For the most part, 2016 will be a housekeeping year for Procurement Services. With the AGLG recommendations in hand, Procurement will revise both the Purchasing and Purchase Card policies, and address periodic reporting to Council consistent with AGLG recommendations. A new initiative involves legal review and updating of bid documents. Upon change request approval, A suite of bid documents including terms and conditions will undergo legal review and be updated. This will ensure documents are current, robust and reduce risk exposure.

Fiscal Services – General Purpose This Department contains the grouping of accounts that relate to financing transactions and capital transactions. Revenues and debt transactions relating to the Fortis BC Gas LILO agreement, as well as interest payments on short term borrowing and interest payments on prepayments of tax and interest paid on security deposits relating to development. Foreign exchange gains and losses when incurred, and losses on disposal on capital assets are recorded in this group of accounts for non utility transactions. Highlights The BC Gas LILO debt financing renewal at current rates has positively affected the cash flow of the agreement. The insurance recovery is a one time transaction offset by the transfer to reserve. Gaming revenue from the Host Local Government agreement continues to add approximately two million dollars annually to the capital funding of the City. The return of live dealers for table games may have a positive effect on revenues in the future. Outlook 2015 reflects the projected lower interest costs on the renewal of issue 95 through the MFA. Issue 95 is the debt issue related to all three business improvement areas, Anderson Specified Area, and one of the debt issues relating the upgrade of the water reclamation plant. The lower costs will be passed on the payers of the individual specified areas reflected in the taxation department.

Collections to/from others Purpose This group of accounts exists to allow for collection of taxes for other taxing authorities from our jurisdiction, and the remittance of the collected taxes to the other taxing authorities according to the terms of the requisition. Other taxing authorities include;

• Provincial School Tax • Regional District Taxes • Regional Hospital District • Okanagan Regional Library • Municipal Finance Authority

This range of accounts is, in effect, a flow through. Highlights The change in 2015 was the transfer of Recreation services taxation, from the Regional District to the City of Vernon.

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Outlook These revenues and the associated expenditures are not within the control of, or subject to approval, from Vernon.

Taxation Purpose Taxation is the non service fee, and grant revenue requirement to fund the City services authorized by Council. Highlights Taxation revenues are at risk each year from taxpayers appealing tax assessments, as well as tax shift, tax payers appealing to have their assessment classification changed to gain the benefit of a lower mill rate for the new classification. The City must assess these types of adjustments into taxation in the following tax year. The distribution of the noted changes are as follows: Non Market Change Operating 1.9% Capital Residential 322,175 353,256 376,943 Utility 6,612 7,056 Light Industrial 8,693 9,276 Business 88,825 188,498 201,137 Recreation/Non Profit 2,157 2,405 Farm 60 65 Totals 411,000 559,276 596,883 Outlook Non market value growth in tax revenues from new development are estimated at $ 411,000 for 2016. An overall operating budget increase of $ 559,276. An approved annual cumulative infrastructure replacement program is included at 1.9% amounting to $ 596,883 is continued with the 2015 Financial Plan. Separation of the Capital Infrastructure Levy on the tax notice, which commenced in 2013, will highlight the renewed focus on infrastructure sustainability. Refinancing of Municipal Finance Authority Debt Issue #95 was refinanced in the fall of 2015. Lower projected costs for the specified areas financed through that debt issue will see lower levies as a result in 2016, and beyond.

Public Transit Conventional Purpose The conventional transit system operates 9 conventional buses within Vernon and Coldstream. All buses in the system are 1999 Dennis Dart's and are scheduled for replacement in late 2016. Highlights A new agreement concerning bus benches saw improvement in the condition of bus benches throughout Vernon. This has been made possible by current advertisers and an agreement with Venture Training to maintain the bus benches. The budget is a status quo budget as the Provinces wrestles with its budget targets for Transit. Outlook A fare review is under discussion with our Regional Partners, and will be launched with the change in our routing planned to coincide with the delivery of a new conventional bus fleet. Use of reserve funds earmarked for transit expansion will soften the potential rise in costs of transit improvements. The restructure of Transit service delivery is planned to be implemented with the new fleet in 2017.

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The new plan will see a change to a central spine for delivery with feeder routes, moving away from the long looping route system we currently utilize. Higher maintenance costs in the last few years of service of the existing fleet of busses continue to be a cost pressure. The budget is a status quo budget as the Provinces wrestles with its budget targets for Transit.

Public Transit Custom Purpose The Custom Transit service, more commonly known as HandiDart, provides transit service to those with mobility issues. The service is held by the City of Vernon, yet provides service to residents of Vernon, Coldstream and the Regional District. Registration and enrollment in this service is required for users of the system.

Highlights Launch of a pilot project with BC Transit concerning eligibility requirements for HandiDart was conducted in 2014. The goal of this project was to ensure users of the system were qualified to use the system. The Pilot project was successful and was adopted Province wide for new registrants.

Outlook Fleet replacement is occurring at a steady pace with replacement of two vehicles annually. The budget is a status quo budget as the Provinces wrestles with its budget targets for Transit.

Grants Purpose This Department highlights the donation of funds and in-kind contributions to community groups, or community events.

Outlook Vernon's next historic anniversary is December 31, 2017, when Vernon will celebrate its 125th anniversary. A current RFQ for property insurance may impact insurance costs for O'Keefe Ranch.

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Fire Department General Purpose Vernon Fire - Rescue is responsible for community safety in many ways: Responding to and mitigating emergency situations to protect life and property, minimize damage, injury or loss, and do so as quickly, effectively and as well prepared as possible are the primary goals of fire and rescue services. In non-emergency times, Vernon Fire - Rescue is focusing on awareness, fire and life safety public education, legislation, bylaw compliance and training. More specifically Vernon Fire - Rescue provides:

• First Medical Response • Fire suppression, fire inspections and investigations, including Fee for Service Agreements • Road Rescue, motor vehicle incident responses • Public education and community relations, community smoke alarm campaign • Hazardous Materials response and Confined Space Rescue, including Fee for Service Agreements • Emergency Fire Dispatch • Emergency Program and Emergency Support Services management

Highlights

• Predator Ridge Station 3 operational in February, with Grand Opening held May 9 and completion of final upstairs interior finishing November 2015

• Renewal of Fee for Service Agreements for Inspections and Investigations in Lumby and Coldstream

• Renewal of Fee for Service Fire Protection Agreement for IR #6 • Negotiation of a renewal agreement with the Vernon Volunteer Firefighters Association, target

completion December 2015 • Full review of Fire Prevention Bylaw and other related bylaws to align with 2014 Community

Wildfire Protection Plan (CWPP) for consideration by Council by the end of 2015. • Continued overtime reduction strategies, cost containment and sustainable deployment

strategies • Management of the Fire Training Centre (FTC) including facility improvement project

management as approved by the FTC Policy Board • Continued participation in the provincial Smoke Alarm Campaign, aimed at ensuring every

household has a working smoke alarm • Maintenance of Fee for Service Agreements for some regional services including Hazardous

Materials, Confined Space and Dispatch • Purchase of new Water Tender per fleet replacement plan • Implementation of Laserfiche electronic records management • Support development of new website as part of corporate project • Preparations for spring freshet and interface fire season through Inter-municipal Emergency

Program management • Completion of Station 1 building improvements with MIA Grant funding

Outlook The focus for Vernon Fire - Rescue in 2016 and beyond is to ensure the department is well positioned to deliver consistent and efficient emergency and public safety services for residents of Vernon. Fee for service agreements, revenue opportunities, along with cost containment and fiscally responsible, sustainable service delivery are the priorities. Fire Prevention activities towards compliance and safety in the community continue, with specific initiatives to implement strategies recommended in the Community Wildfire Protection Plan to reduce the risk of wildfire in high hazard neighbourhoods.

FIRE RESCUE SERVICES Keith Green

Fire Chief [email protected]

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Further, Vernon Fire - Rescue will undertake a review of the services, structure and costing formulas for the Inter-municipal Emergency Program. Work plans for Vernon Fire - Rescue are aligned with Council's Strategic Deliverables and will be updated and reported to Council throughout the year.

Fire Fighting Purpose This grouping of accounts represents the costs of firefighting forces made up of both career and paid-per-call firefighters operating out of Station 1 Downtown, Station 2 Okanagan Landing and Station 3 Predator Ridge. Revenue streams for this cost centre include Fee for Service Agreements and services provided to other agencies and levels of government. Highlights

• Continual review of the First Medical Responder program protocols for incident types and redundancy

• Mitigation of all incidents, including some large scale fires • Specific attention to the interface season and the unfavourable drought conditions experienced

locally • Delivery and commissioning of new water tender • Fall recruit for Paid - per - Call Firefighters • Completion of Annual Training Plan

Outlook Focus for the upcoming year is to continue implementing operational efficiencies, stream line deployment and minimize risk for the residents of Vernon. Training will be completed as per the Annual Training Plan for all firefighters and includes on line theory, task and drill, live fire at the FTC, and re-certifications as required. In May 2016, Vernon will host the Fire Prevention Officers Association of B.C. Annual Seminar.

Emergency Management Purpose This group of accounts represents the revenue and expenses of the Inter-municipal Emergency Program. Every municipality and regional district is legislated by the Province of B.C. to have an emergency program. Sharing the cost provides an economy of scale for all partners, as well as provides depth in local preparation for emergencies that may cross local borders. Highlights In 2015, spring predictions of summer drought conditions began to prove true, and in many areas of the province hot temperatures and lack of rain resulted in early fire bans, including in the Kamloops Fire Zone which governs Vernon and area. The spring freshet season did not experience as many major incidents as 2014, however preparations included a large sandbagging operation in Lumby in the event flooding was significant. Emergency Support Services (ESS) supported the active fire season, most specifically in preparation for assisting evacuees from the Rock Creek fire in August. Staff also coordinated a number of highly successful training, planning and preparedness initiatives. Outlook The risk factors affecting emergency management in the North Okanagan are expected to remain consistent with previous years. They include climate change, aging infrastructure, continued construction in, and development of, the urban-interface areas and federal and provincial requirements. In particular, extreme and unpredictable weather events may increase due to the unusual El Nino anticipated to affect the Pacific Northwest.

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The North Okanagan is well prepared to manage local emergencies, and the program is well supported through the Provincial Emergency Program (PEP) protocols and funding reimbursement mechanisms. A goal for 2016 will be to increase awareness for 72 Hour Preparedness at the neighbourhood level, and improve overall community resiliency. In 2016 Vernon Fire - Rescue will undertake a full review of the overall program.

Fire Training Center Purpose This grouping of accounts is for managing the Regional Fire Training Centre (FTC) and includes the proportionate shares from Regional partners showing as Inter-Municipal Recoveries. Revenue from outside customers and participant user fees is reflected in the Fire Training Fees and Internal Revenue reflects the City of Vernon's share. Overall management of the FTC is in accordance with the Inter-Municipal arrangements, and initial annual budget approval mechanism is through the representatives on the FTC Operations Committee and Policy Board. In addition to the annual operating expenses, the participants reserve, held by the City, has been allocated over time, to fund facility improvement projects authorized by the Policy Board. Highlights The focus of the current year has been economically viable and sustainable fire training costs for all participants. Outside users of the facility continue to provide additional revenue to offset expenses. Several facility upgrades were completed in accordance with input from the Fire Training Centre Operations Committee and with funding approval of the Policy Board. Outlook The Fire Training Centre will continue to provide standardized training locally and to realize an economy of scale for fire training costs for all participants. Outside customers and non fire department users are an additional source of revenue and the shared used of the facility amongst the partners is cooperative and beneficial. It is anticipated revenue and expense items will remain consistent with prior year. For 2016 the Fire Training Centre Policy Board approved facility improvements, at the site, anticipated to cost $43,000. The improvements will improve protection of existing assets and props and enhance usage for all firefighters.

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Human Resources General Purpose The Human Resource Division supports both internal and external customers by providing specialized advice, support, and assistance in all aspects pertaining to people management. Aspects include recruitment, labour relationships, occupational health and safety, training and development, benefit administration, wage and salary administration, and many other areas that involve current and future City of Vernon employees. Human Resources is a strategic partner at the Senior Management Table and has the responsibility for championing City of Vernon initiatives that build on a progressive and engaging organizational culture. It is through a positive corporate culture that employees are in the best position to provide excellent support and service to our citizenry. The Human Resource Division also acts as the primary contact for applicants, our community educational institutions, various community employment agencies, and service groups. Highlights The Human Resource Division continues to focus on the delivery of Council’s Strategic Priorities. A focus remains to build upon the existing culture and to nurture the development of a contemporary and efficient learning organization. Successes include:

• Conclusion of IAFF bargaining within Council budget direction to end of 2015; • Staff engagement activities (Annual Appreciate Event); • Completion of Strategic Capacity Development Program; • Orientation and roll-out for Respectful Workplace Training (Bill 14 – WorkSafe BC); • Successful completion of Internal Certificate of Recognition (COR) Audit (2011-2014) – resulting

in $153,090 rebate over four (4) years; • Purchase and implementation of eight (8) AED’s. Implementation included training for all City of

Vernon designated First Aid Attendants; • Completion of roof top fall protection hazard assessment and program enhancements related to

a Fall Protection Program; • Program audits (payroll loading), policy review, and rewrites pertaining to compliance with local,

provincial, and federal labour laws; and • Various training initiatives (180 participants and 937 person hours) including, • On-line training;

o Transportation of Dangerous Goods; o WHMIS; o First Aid; o Lockout; o Confined Space; o Biohazard; o Service to Safety; o Excavation; o Bucket Truck Self Rescue; and o Truck Mount Davit Arm.

Outlook The strategic deliverables that will impact the Human Resource Division budget for 2016-2017 include continued work and implementation pertaining to the Corporate HR Plan (performance management planning, human resource (succession) planning; recruitment and retention), review and preparation for

HUMAN RESOURCES Raeleen Manjak


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IAFF collective bargaining, and a safe a healthy work environment that includes maintenance and continuous improvement related to compliance, work environment(s), and employee health and safety.

Human Resources Corporate Purpose The Human Resource Division supports both internal and external customers by providing specialized advice, support, and assistance in all aspects pertaining to people management. Aspects include recruitment, labour relationships, occupational health and safety, training and development, benefit administration, wage and salary administration, and many other areas that involve current and future City of Vernon employees. Human Resources is a strategic partner at the Senior Management Table and has the responsibility for championing City of Vernon initiatives that build on a progressive and engaging organizational culture. It is through a positive corporate culture that employees are in the best position to provide excellent support and service to our citizenry. The Human Resource Division Corporate budget captures expenditures related to recruitment, training and staff development, retiring allowances, and severance payments. Additionally, the Human Resource Division Corporate budget focuses on corporate performance excellence. This includes key initiatives to build corporate capacity, initiatives to improve effectiveness and efficiency, all while ensuring a balanced portfolio that best achieves our strategic and operational goals and that drives improvement and accountability through corporate performance management. A high performing and accountable workforce committed to our vision and that is adaptable to new challenges will position the City of Vernon to better absorb disruptions within the labour market. A future focus on organizational readiness will facilitate challenges related to recruitment and retention, labour shortages, and an aging work force. A focused strategic design will align with our corporate culture and is about creating the type of employment environment that demonstrates and fosters intellectual challenge, autonomy, flexibility, and commitment. Building and nurturing a successful employer-employee relationship supports the aspiration to become an Employer of Choice. Highlights As per Human Resource Division General Highlights. Outlook The strategic deliverables that will impact the Human Resource Division budget for 2016-2017 include continued work and implementation pertaining to the Corporate HR Plan (performance management planning, human resource (succession) planning; recruitment and retention), review and preparation for IAFF collective bargaining, and a safe a healthy work environment that includes maintenance and continuous improvement related to compliance, work environment(s), and employee health and safety.

Occupational Health and Safety Purpose The focus of the Occupational Health and Safety (OH&S) function is to ensure the City is in compliance with WorkSafe BC (WSBC) Regulation and Industry best practices. This Department is responsible for developing, maintaining, and improving the City Safety Management System (SMS) which encompasses safety programs such as Workplace Violence, Hazard Identification and Control, Confined Space Entry, De-energization and Lockout, Accident Investigation, Contract Coordination, and Excavation Safety. This Department also manages occupational injury claims (WSBC), as well as non-occupational injuries which involves implementation of modified graduated return to work (MGRTW) plans. These plans benefit the organization by reducing WSBC insurance premiums and sick time benefit usage.

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Highlights The City of Vernon will undertake an external COR audit in October 2015 for both the Safety Management System (SMS) and Stay at Work/Return to Work (SAW/RTW) programs. Continued success will result in the City's eligibility for a 15% incentive cheque from WSBC; 10% for the SMS, and 5% for the SAW/RTW. The 2015 safety initiatives were implemented across various departments within the Corporation. This included heated jackets for outside workers working in static positions, upgraded utility locating equipment, hydraulic pipe cutters for large diameter asbestos cement pipe, fall protection system for Fleet (mechanics), personal self rescue systems for three (3) fleet bucket trucks, and sit stand workstations to address ergonomic issues. The City also dedicated 937 person hours as of September 1, 2015 to safety related training for City workers across the Corporation. Outlook The focus for Occupational Health and Safety in 2016 is to continue to implement and revise mandatory safety training and programs to ensure the City maintains the Certificate of Recognition (COR) through WSBC and the BC Municipal Safety Association (BCMSA), which was achieved in December 2011. Continuing to maintain COR will ensure incentive cheques continue to be received from WSBC which provides support for the City of Vernon's safety programming and initiatives.

Certificate of Recognition (COR Program) Purpose In December 2011, the City of Vernon participated in an audit of its Safety Management System (SMS) as part of the WorkSafe BC (WSBC) Certificate of Recognition (COR) program. Upon successful completion of the audit, the City was issued COR certification and became eligible for a 10% rebate based on insurance premiums paid to WSBC. In early 2012, Council directed that the COR rebates received by the City of Vernon from WSBC be maintained in the Occupational Health & Safety (OH&S) budget for use in future safety initiatives. Highlights The City of Vernon will undertake an external COR audit in October 2015 for both the Safety Management System (SMS) and Stay at Work/Return to Work (SAW/RTW) programs. Continued success will result in the City's eligibility for a 15% incentive cheque from WSBC, 10% for the SMS, and 5% for the SAW/RTW. The 2015 safety initiatives were implemented across various departments within the Corporation. This included heated jackets for outside workers working in static positions, upgraded utility locating equipment, hydraulic pipe cutters for large diameter asbestos cement pipe, fall protection system for Fleet (mechanics), personal self rescue systems for three (3) fleet bucket trucks and sit stand workstations to address ergonomic issues. Outlook This budget will be used to fund safety initiatives across the organization directly related to worker safety and organizational compliance with WorkSafe BC policy and regulation. This is the range of projects for the next three (3) to five (5) year time period. The project targets for 2016 include: Asbestos Inventory, Workplace Violence Risk Assessment, Employee Family Assistance Program, and Workplace Hazardous Material Information System (WHMIS) changeover to Global Harmonized System (GHS).

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Operations General Purpose The Operation Services Division manages, directs, and coordinates the activities of the Public Works, Parks, Airport, Utilities (including Sanitary, Storm & Water), Fleet, Building Services, Vernon Water Reclamation Centre and Spray Irrigation departments. This department covers Operations administration budget and includes short term sick time, on-call and various other charges related to Divisional meetings and training. Highlights Continued implementation of asset management strategy and preventative maintenance program. Emphasis on finding energy efficiencies through comprehensive studies and facility modifications. Outlook The focus of this area in 2016 will be to continue to provide a high level of service to the residents of the City of Vernon. There will be an emphasis on finding operational efficiencies to minimize increasing costs necessitated by expanded infrastructure and market conditions relating to contracts.

Facilities General Purpose Under the direction of the Building Services Manager, this department is responsible for the operation and maintenance of all City facilities and attached grounds, including: City Hall, City Yards, Community Services Building, Fire Halls 1&2, RCMP Station, Water Reclamation Center, Parkade, and Tourist Information Booth as well as many rental buildings. This department also oversees energy management for the City of Vernon. The Building Services department is responsible for ensuring that the City of Vernon takes a lead role in supporting the mandate of sustainability, including educating staff, promoting energy conservation and ensuring that City facilities are operated and maintained as efficiently as possible. In addition to general maintenance and operation of the City facilities, the department will also provide ‘in-house’ construction services for renovations and modifications within City owned buildings. This budget includes general expenses related to facilities as well as Facility Manager's salary. Highlights

• Completed BFAMP • Completion of solar domestic hot water systems for both the RCMP building and Fire Hall #1 • Completed Energy Audit of Rec Center and Kal Tire Place • Completed renovation of the Central Visitor Centre • Completed renovation of the RCMP expansion into City Hall

Outlook Maintain our current level of service for 2016. This department will implement as many of the recommendations from the Building Facilities Asset Management Plan (BFAMP) as funding will allow with a main focus on building HVAC systems and roofs. This department also will continue to research and implement energy efficiency initiatives and focus on our sustainability plan in 2016.

Fleet General Purpose Fleet Services is responsible for the operation and management of the City fleet. This department provides for the purchase, maintenance and repair of city owned vehicles and equipment including Fire

OPERATION SERVICES Shirley Koenig


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Rescue, Parks, Recreation Services vehicles (Fleet - 205 vehicles, with an additional 24 Stationary generators and other related small power tools). Provides Vehicle Inspection Services in accordance with Commercial Vehicle (CV) inspection regulations and National Safety Code (NSC) compliance. Supplies welding and fabrication services for all city departments. Manages the VHF radio aircraft fueling services and repeater system. Provides airport fueling services after regular business hours as well as backup for Airport fueling staff. Provides Monday to Saturday repair and maintenance. Business hours and weekday coverage from 7:30am to 8:30pm. Majority of scheduled vehicle servicing is performed after regular City business hours resulting in minimum vehicle downtime. This department budget includes an annual transfer to the Vehicle and Equipment reserve to fund future vehicle and equipment replacements. Highlights Fleet Services installed AutoCAD systems in Fire Rescue vehicles and continued with the annual fire apparatus pump testing for Vernon, Silver Star and Armstrong Fire Departments as well as service support to the Fire Training Centre's equipment. Provided comprehensive Fleet maintenance services to the Recreation Services vehicles and equipment. Outlook The focus for 2016 and 2017 is to continue providing effective preventive maintenance service to the fleet and to reduce the City Fleet carbon footprint Greenhouse Gas (GHG) emissions and fuel consumption with anti-idling initiatives including the Geotab Global Positioning Systems (GPS) systems in all city owned vehicles and equipment. Continue to purchase right size vehicles with each new acquisition and follow Vehicle Replacement Policy for life cycle replacement.

Public Works

Local Parks Purpose The City is responsible for the care, control, and funding of local parks within the City’s jurisdiction. Included in this department is partial funding for Manager of Public Works (15%), the Parks Foreman (60%), as well as a funding allocation required for general items that can’t be directly charged to individual parks. Vehicle charges for the Parks Foreman position and insurance and permit fees are also included in this department. Highlights In 2014 the City implemented a new service delivery model for local and sub-regional parks consistent with the Greater Vernon Sub-Regional Parks and Trails Service Agreement. This Agreement expires October 31, 2016 and is due for renegotiation commencing June 30, 2016. Outlook The completion of the Parks Master Plan approved in 2015 will provide clear direction for the City relating to service delivery, asset management, and capital planning. Operating and capital budget amendments are subject to Council review and direction.

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Sub-Regional Parks Purpose The City has been contracted by RDNO to provide parks maintenance services for all sub regional parks located within the City of Vernon as well as Kal Beach and Creekside Park located in the District of Coldstream. The fees and service levels for sub-regional parks maintenance is defined in the Parks Management and Operations Agreement. The agreement is for a three year term commencing January 1, 2014. Included in this department is partial funding for Manager of Public Works (15%), the Parks Foreman (40%) as well as equipment charges for this position. Insurance, operations overhead, permit fees and security for all Sub-Regional parks is also included in this department. Highlights In 2014 the City implemented a new service delivery model for local and sub-regional parks consistent with the Greater Vernon Sub-Regional Parks and Trails Service Agreement. Outlook Changes in service levels are determined by RDNO. No service changes for 2016 have been identified at this time. Budget changes are determined by the Parks Management and Operations Agreement and are adjusted annually by CPI (All Canada). This Agreement expires October 31, 2016 and is due for renegotiation commencing June 30, 2016.

Public Works General Purpose The Manager of Public Works oversees the operation and maintenance works relating to Public Works and Parks including roads, sidewalks, street lights, traffic signals, traffic signs, garbage collection, boulevard landscaping and weed control, street trees, snow and ice control and cemetery maintenance. This Department is also responsible for the construction of the ‘in-house’ capital works road and sidewalk projects as well as the operation and maintenance of the Airport. Highlights Highlights of Current Year include the following:

• Completion of the road rehabilitation project on Okanagan Landing Rd from Cummins Rd to PaddleWheel Park

• Completion of the road rehabilitation project on Kosmina Rd from Middleton Way to Wadington Dr • Completion of the road rehabilitation project on 24th Street from 48th Ave to 55th Ave • Completion of the signalized intersection at 35th Avenue and 27th Street. • Completion of the sidewalk project on 24th Avenue from 34th Street to 39th Street • Completion of the Airport Master Plan (with Community Development as lead)

Outlook The focus for Public Works in the upcoming year will be to proceed with Phase I of the LED street light conversion program (pending Council Approval), proceed with the recommendations identified in the Airport Master Plan, and re-negotiate the Parks Sub-Regional maintenance.

Sewer Operations General Purpose The Sewer Operations General Department is responsible for the administration of the Sanitary Utility which includes the allocation of wages for management & CUPE B employees, training costs, licenses, software requirements, fleet charges, transfer to Carbon Tax Reserve and Common Service allocations. Common Service allocations are charges incurred for the use of Operations Yards and Facilities.

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Highlights Enrollment in Environmental Operator Certification has become an integral part of Utilities. Outlook Current work practices will be monitored to explore opportunities for efficiency in an effort to improve the overall operation of the system. With the re-structure of the Utilities Department and regulation changes, new certification requirements for the staff will require training in 2016 and beyond.

Storm System Purpose Under the direction of the Manager Utilities, this department is responsible for the daily operation, maintenance and repair of Storm infrastructure within the City of Vernon, including storm mains, manholes, culverts, catch basins, creek channels, ditches and storm retention facilities. The department is also responsible for the construction of ‘in-house’ capital works storm projects. In addition to the above, the department is also involved with Infrastructure Asset Management investigation for short-term and future capital programs. Highlights Completed Storm main reconstruction in: - 27 Avenue from 35 to 34A Street - 28 Street from 39 to 41 Avenue Completed a number of development requests for service installation and/or upgrades. Outlook Infrastructure Assessment Program - Flush, clean and determine the integrity of the mains and lateral services where possible. Upcoming storm replacement projects (pending Council approval): -28 Avenue from 29 to 30 Street -29 Avenue from 29 to 30 Street

Water Department General Purpose The Manager, Utilities oversees the daily operation (by contract with Greater Vernon Water) of the water system and is responsible for the maintenance and repair of the water infrastructure (transmission, distribution and storage) which includes water mains, hydrants, valves, residential and commercial services, 18 pump stations and 11 reservoirs; within the City of Vernon and Areas B and C. Highlights

• Quality assurance, the introduction and acceptance of new AWWA standards for Disinfection of Water Mains

• Commissioning of new development projects • Continuation of unidirectional flushing and valve exercising program • Ongoing operational changes to optimize pressure zones and eliminate others • Operationally blending water sources to maximize water licensing allocation.

Outlook Additional Environmental Operator Certification Program (EOCP) will be required due to the department restructure. Continue to be involved in the capital infrastructure improvements such as mainline upgrades, extensions, large valve replacements and pump station improvements.

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Purpose Vernon North Okanagan Detachment is an integrated department providing policing services 6 distinct policing jurisdictions encompassing Armstrong (including the Township of Spallumcheen) Enderby (including the Spallumcheen First Nations Lands), Falkland, Lumby, Vernon Rural (including Okanagan First Nations Lands) and the City of Vernon (including the Municipal contract for the District of Coldstream). The employees of the RCMP are committed to our communities through: -Unbiased and respectful treatment of all people -Accountability -Mutual problem solving -Cultural sensitivity -Enhancement of public safety -Partnerships and consultation -Open and honest communication -Effective and efficient use of resources -Quality and timely service Vernon/North Okanagan RCMP are committed to providing World-Class Policing Services guided by our core values of honesty, integrity, professionalism, compassion, accountability and respect. Our dedication to these core values and steadfast pursuit of our Core Policing Activities of service, prevention, protection, enforcement and intelligence is enhancing public safety and helping to build “A Safe and Secure Canada”. Highlights Supt. Burgess, the former Officer in Charge of Vernon North Okanagan Detachment retired in July, 2015. In October 2015, Supt. McNamara took over as the Officer in Charge. The detachment is presently training a new class of 12 Auxiliary Constables. As a result of threats to uniformed police and armed forces personnel in Canada, the Auxiliary Policing Program is under review. Public and private consultation with our stakeholders again this year provided endorsement for continuation of our three Strategic Priorities: Crime Reduction, Road safety and Communication. Vernon experienced a significant increase in property crime in 2014 which carried into 2015. Fortunately, Vernon also saw a significant decrease in violent offences during the same period. Although the increased property crime trend continued into the first quarter of 2015, efforts by our Prolific Offender team and our General Duty members in targeting our prolific offenders have been successful in driving the property crime trend downward. Efforts in combating property crime will continue in order to achieve our goal of a 5% reduction by year end. Vernon Detachment collaborated with several partner agencies that were successful in getting funding from the Federal Department of Justice to open a Child and Youth Advocacy Center in Vernon. The center, to be named “Oak Center” should be up and running by year's end. The Oak Center will provide a coordinated response to crimes against children and youth and support child and youth witnesses and their families. The Oak Centre and partner agencies collaborative process will seek to minimize system-induced trauma and optimize judicial, social, health and emotional outcomes for children and youth impacted by crime. In order to address increased demands on police resources in dealing with mental health issues, Vernon Detachment has worked very closely with senior executive staff from the Interior Health Authority on various issues of mutual concern. A 12 point action plan was developed with work still underway on various issues which both agencies hope will lead to efficiencies in operations and a reduction in demands on police resources. The RCMP in collaboration with the School District held the Jean Minguy Memorial Youth Academy again this year as part of the detachment's commitment to our community’s youth. Again, it was a great success. The detachment continues to work closely with the Integrated Case Assessment Team (ICAT) on combating domestic violence. The Vernon ICAT continues to be recognized in the province as a best practice.

RCMP CONTRACT Jim McNamara

Superintendent [email protected]

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Outlook The RCMP Contract Department (310) was previously budgeted in Department 311 - RCMP Municipal Support Services (name changed.) Traffic Fine Revenue and RCMP contract costs are included in this new department. The RCMP Contract costs have been distributed among major expenditure areas to provide more information to Council. Although compensation packages have not yet been negotiated for 2015 and 2016, it's been recommended that municipalities forecast a salary increase of 2.5%. That combined with increased Division Administrative costs, National Program Administrative costs, training costs and fuel costs resulted in a forecasted budget increase of 3.01% for 2016. Expected traffic fine grant revenue for 2016 has now been assigned to the RCMP contract budget. In past years there's been some fluctuation in the grant revenue so City of Vernon finance has provided a cushion in the RCMP Contract budget to accommodate these fluctuations. There's been a drop in the expected traffic fine revenue for 2016 to $488,000 resulting in a reduction of the cushion to $103,000. The forecasted contract increase exceeds the remaining cushion so it'll be eliminated as of 2016. The inclusion of the traffic fine revenue and the $103,000 cushion has allowed us to reduce the forecasted 3.01% increase to 1.87%. This budget does not allow for any expenses related to extraordinary items or investigations requiring high cost specialized police techniques or resources. Due to increased risk to uniformed police and armed forces personnel since 2014, the detachment has been faced with additional overtime costs related to police security at events such as Remembrance Day and the Military Tattoo in order to ensure police and public safety. Potential costs in the more distant future include blue tooth devices in police cars at $600/car to comply with provincial legislation. In-car video systems at $4300/car (12 marked cars). These are being researched and are pending a privacy impact assessment. The RCMP is also testing body worn video at their training center in Regina. The costs of the body worn video are unknown right now. Forecasted costs do not include costs associated to data retention, management and disclosure. As documented in previous years, the city had been facing a significant potential financial liability related to an RCMP retroactive pay adjustment dating back to 2008. RCMP members lost their Supreme Court challenge so that’s no longer outstanding.

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Recreation General Purpose Recreation Services operates the Vernon Recreation Centre including the Vernon Aquatic Centre, Recreation Centre Auditorium, Dogwood and Priest Valley Gymnasiums, Halina Senior Citizens Centre and in the spring and summer months lease the Vernon Curling Club. In addition to these facilities Recreation Services also operates Kal Tire Place, Priest Valley, Civic and Centennial Arenas and both Recreation Services offices located at the Recreation Centre and at Kal Tire Place. In the summer months Recreation Services also operates the Lakeview and Lavington Outdoor Pools. Over 1000 programs are offered in these facilities and in the community through our Programs Division. Highlights 2015 was the second year of a five year Fee for Service Agreement with the Regional District of North Okanagan and the District of Coldstream. The 2015 budget was based on the 2014 budget plus 2.1% CPI for Canada August as agreed in the Recreation Facilities and Programming Agreement. 2015 has seen many exciting initiatives and projects started including the major renovation to the Recreation Centre, the start of the Recreation Facilities Master Plan process, the bidding for the right to host the BC 55+ Games and the referendum to twin Kal Tire Place. Outlook In 2016 we will continue to supply services at or above historic levels, reinvest in our recreation facilities and continue planning for the future through the Recreation Master Plan process. Planning will begin in January for the 2017 55+ BC Games and staff will travel to the Coquitlam games in the Fall of 2016 as observers. The 2016 budget is based on the 2015 budget plus a 1.3% CPI for Canada August as agreed in the Recreation Facilities and Programming Agreement.

RECREATION SERVICES Doug Ross


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Financial Section

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THE CORPORATION OF THE CITY OF VERNON Finance Division

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

December 31, 2015

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THE CORPORATION OF THE CITY OF VERNON 3400 - 30TH STREET VERNON, BC V1T 5E6

P:250-545-1361 F:250-545-7876

MANAGEMENT'S RESPONSIBILITY FOR THE CONSOLIDATED FINANCIAL STATEMENTS

The accompanying financial statements of The Corporation of the City of Vernon (the "City") are the responsibility of management and have been prepared in compliance with legislation, and in accordance with generally accepted accounting standards for local governments established by the Public Sector Accounting Board of the Canadian Institute of Chartered Professional Accountants. A summary of the significant accounting policies are described in Note 1 to the financial statements. The preparation of financial statements necessarily involves the use of estimates based on management's judgment, particularly when transactions affecting the current accounting period cannot be finalized with certainty until future periods.

The City's management maintains a system of internal controls designed to provide reasonable assurance that assets are safeguarded, transactions are properly authorized and recorded in compliance with legislative and regulatory requirements, and reliable financial information is available on a timely basis for preparation of the financial statements. These systems are monitored and evaluated by management.

Mayor and Council meet with management and the external auditors to review the financial statements and discuss any significant financial reporting or internal control matters prior to their approval of the financial statements.

The financial statements have been audited by KPMG LLP, independent external auditors appointed by the City. The accompanying independent Auditors' Report outlines their responsibilities, the scope of their examination and their opinion on the City's financial statements.

Director of Financial Services Chief Administrative Officer

May 9, 2016

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KPMG LLP 3205-32 Street, 3rd Floor Vernon, BC V1T 9A2 Canada

Telephone (250) 503-5300 Fax (250) 545-6440 www.kpmg.ca

KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.KPMG Canada provides services to KPMG LLP.

INDEPENDENT AUDITORS’ REPORT

To Mayor and Council of the Corporation of City of Vernon

We have audited the accompanying consolidated financial statements of the Corporation of the City of Vernon, which comprise the consolidated statement of financial position as at December 31, 2015, the consolidated statements of operations, change in net financial assets and cash flows for the year then ended, and notes, comprising 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 our 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, we consider 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.

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KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.KPMG Canada provides services to KPMG LLP.

Opinion

In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Corporation of the City of Vernon as at December 31, 2015, and its consolidated results of operations, its consolidated changes in net financial assets and its consolidated cash flows for the year then ended in accordance with Canadian public sector accounting standards.

Other Matters

Our audit was conducted for the purpose of forming an opinion on the financial statements taken as a whole. The supplementary information included in Exhibit 1: Schedule of General Revenue Fund Operations and Exhibit 2: Schedule of Sewer Revenue Fund Operations is presented for the purposes of additional analysis and is not a required part of the financial statements. Such supplementary information has been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole.

Chartered Professional Accountants

May 9, 2016

Vernon, Canada

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The Corporation of the City of Vernon Consolidated Statement of Financial Position Statement A

December 31, 2015 (in thousands of dollars) 2015 2014

Financial Assets Cash and cash equivalents Note 2 $ 55,445 $ 45,554 Portfolio investments Note 3 5,330 5,212 Accounts receivable Note 4 18,486 19,801 Municipal Finance Authority deposits Note 5 2,422 2,393 Land under development Note 6 3,148 3,142

84,831 76,102

Liabilities Accounts payable and accrued liabilities Note 7 22,146 21,818 Deferred charges Note 8 9,584 8,360 Deferred revenue Note 9 3,440 4,693 Municipal Finance Authority reserves Note 5 2,422 2,393 Debt Note 10 24,881 27,756

62,473 65,020

Net Financial Assets 22,358 11,082

Non-financial Assets Tangible capital assets Note 12 572,983 570,210 Inventory of supplies 337 328 Prepaid expenses 619 580

573,939 571,118

Accumulated Surplus Note 13 $ 596,297 $ 582,200

Commitments and contingencies Note 19 & 21

Approved by:

Director of Financial Services

The accompanying summary of significant accounting policies and notes are an integral part of these financial statements.

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The Corporation of the City of Vernon Consolidated Statement of Operations Statement B

For the Year Ended December 31, 2015 (in thousands of dollars)

Budget 2015

Note 24 Actual 2015

Actual 2014

Revenue Taxation Note 14 $ 34,332 $ 35,195 $ 32,413 Government transfers Note 15 6,993 10,431 10,721 Services provided to other governments 3,743 3,896 6,088 Sale of services:

Sewer fees and charges 9,333 9,278 9,357 Environmental health 1,992 2,083 2,265 Recreation Fees 2,166 2,067 2,084 Public transit and parking 1,941 1,911 1,881 Fines and rentals 1,720 1,655 1,718 Licences and permits 1,263 1,638 1,480 Airport 1,104 991 1,161 Other 509 1,607 609 Development fees 145 193 156

Fiscal services: Penalties, interest earned and actuarial 952 2,197 2,167 Net gain on transfer of tangible capital assets - 2,515 11,794

Natural gas system agreement 2,500 2,508 2,509 Developer contributions of assets 50 5,083 3,722

68,743 83,248 90,125

Expenses Notes 18 & 23 General government and common services 9,878 10,194 9,680 Bylaw compliance and parking control 1,100 1,097 1,118 Protective Services:

Police 10,905 10,460 10,417 Fire and rescue 5,462 5,916 4,640 Emergency measures 154 180 330

Planning and building inspection 2,083 2,283 1,861 Engineering 2,567 2,138 2,079 Operations Services:

Road transportation 15,219 14,702 14,366 Sanitary sewer 8,936 8,045 7,924 Solid waste and recycling 1,816 1,726 1,861 Park services 1,923 1,924 1,735 Storm drainage 1,277 1,235 1,268 Airport 1,164 1,147 1,177 Other 565 1,256 926 Cemetery 194 230 259

Recreation 7,630 6,618 6,346

70,873 69,151 65,987

Annual surplus / (deficit) (2,130) 14,097 24,138 Accumulated surplus, beginning of year 582,200 582,200 558,062

Accumulated surplus, end of year Note 13 $ 580,070 $ 596,297 $ 582,200


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The Corporation of the City of Vernon Consolidated Statement of Change in Net Financial Assets Statement C

For the Year Ended December 31, 2015 (in thousands of dollars)

Budget 2015

Note 24 2015 2014

Annual surplus $ (2,130) $ 14,097 $ 24,138

Acquisition of tangible capital assets (11,117) (10,734) (23,442) Acquired tangible capital assets from developers - (4,260) (2,408) Amortization of tangible capital assets 11,229 11,691 11,422 Net gain on transfer of tangible capital assets - (2,515) (11,794) Proceeds on sale of tangible capital assets - 3,045 14,470

112 (2,773) (11,752)

Acquisition of supplies inventories - (805) (643) Acquisition of prepaid expenses - (865) (694) Consumption of supplies inventories - 796 648 Use of prepaid expenses - 826 444

- (48) (245)

Change in net financial assets (2,018) 11,276 12,141

Net financial assets / (debt), beginning of year 11,082 11,082 (1,059)

Net financial assets, end of year $ 9,064 $ 22,358 $ 11,082


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The Corporation of the City of Vernon Consolidated Statement of Cash Flows Statement D

For the Year Ended December 31, 2015 (in thousands of dollars) 2015 2014

Operating Activities Annual surplus $ 14,097 $ 24,138 Non-cash items included in annual surplus:

Amortization of tangible capital assets 11,691 11,422 Net gain on transfer of tangible capital assets (2,515) (11,794) Actuarial adjustments on long-term debt (1,136) (1,012) Contributed tangible capital assets (4,260) (2,408)

Change in non-cash operating items: Decrease / (increase) in accounts receivable 1,315 (4,855) Increase / (decrease) in accounts payable and accrued liabilities 328 (85) Increase in deferred charges 1,224 978 (Decrease) / increase in deferred revenue (1,253) 3,214 (Increase) / decrease in supplies inventories (9) 4 (Increase) in prepaid expenses (39) (251)

19,443 19,351

Investing Activities: (Increase) / decrease in portfolio investments (118) 4,319 (Increase) in land under development (6) (536)

(124) 3,783

Financing Activities: Principal payments on long-term debt (1,739) (1,736)

Capital Activities: Proceeds on sale of tangible capital assets 3,045 14,470 Acquisition of tangible capital assets (10,734) (23,441)

(7,689) (8,971)

Increase in cash and cash equivalents 9,891 12,427

Cash and cash equivalents, beginning of year 45,554 33,127

Cash and cash equivalents, end of year $ 55,445 $ 45,554


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The Corporation of the City of Vernon Notes to the Consolidated Financial Statements Year Ended December 31, 2015 (tabular amounts in thousands of dollars)

1. Significant Accounting Policies:

The Corporation of the City of Vernon (the “City”) is incorporated and operates under the provisions of theLocal Government Act and Community Charter of British Columbia. The City provides local governmentservices to residents of its incorporated area including administrative, protective, transportation, sewer, stormdrainage, park maintenance, recreation, community development and environmental.

a) Basis of Accounting:

The consolidated financial statements of the City are prepared by management in accordance withaccounting standards established by the Public Sector Accounting Board (PSAB) of the CanadianInstitute of Chartered Professional Accountants.

All revenue is recognized on an accrual basis. Property taxes are recognized as revenue in the yearthey are levied. Utility charges are recognized as revenue in the period earned. Expenses are recordedin the period in which the goods or services are acquired and a liability is incurred.

b) Basis of Consolidation:

The consolidated statements include all funds of the City and its wholly-owned other governmentorganization subsidiaries. Inter-fund revenues, expenses, assets, and liabilities have been eliminated.The following controlled entity has been consolidated:

CBW Development Corp. 100%

c) Measurement Uncertainty:

The preparation of financial statements requires management to make estimates and assumptions thataffect the reported amounts of assets and liabilities at the date of the financial statements and thereported amounts of revenues and expenses during the reporting period. Significant estimates includeassumptions used in estimating historical cost and useful lives of tangible capital assets, estimatingprovisions for accrued liabilities and contingent liabilities and in performing valuations of employee futurebenefits. Actual results could differ from those estimates and adjustments, if any, will be reflected in theperiod of settlement or upon a change in the estimate.

d) Cash and Cash Equivalents:

Management classifies all highly liquid investments with maturity of three months or less at acquisitionas cash equivalents.

e) Land Under Development:

Land under development is valued at the lower of cost and net realizable value. Costs of inventoryinclude the original land costs and design, engineering and other related costs associated with holdingthe property.

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1. Significant Accounting Policies: (continued)

f) Deferred Charges:

Deferred charges are comprised of levied and unused Development Cost Charges and Sidewalk Giftingfunds. These funds are recorded as revenue in the year they are used to fund tangible capital assetacquisitions or eligible operating expenses.

g) Deferred Revenue:

Deferred revenue represents property taxes, licenses, permits and other fees that have been collected,but for which the related taxes have not yet been levied and services or inspections have yet to beperformed. These amounts will be recognized in revenue in the fiscal year taxes are levied, services areperformed, or revenues are earned. Deferred revenue amounts are included in Accounts Payable andAccrued Liabilities (note 7.)

h) Debt:

Debt principal payments are not charged against current operating revenue pursuant to public sectoraccounting standards. Interest is recorded on an accrual basis. Gross interest paid on long term debt in2015 was $1,529,000, ($1,616,000 in 2014).

i) Liability for Contaminated Sites:

During the year the City adopted Public Sector Accounting Standard 3260: Liability for ContaminatedSites. Contaminated sites are a result of contamination being introduced into air, soil, water or sedimentof a chemical, organic or radioactive material or live organism that exceeds an environmental standard.The liability is recorded net of any expected recoveries. A liability for remediation of contaminated sitesis recognized when all the following criteria are met: an environmental standard exists, contaminationexceeds the environmental standard, the City is directly responsible or accepts responsibility, and areasonable estimate of the amount can be made. The adoption of this standard did not have a materialimpact on the City.

j) Non-Financial Assets:

Non-financial assets are not available to discharge existing liabilities and are held for use in the provisionof services. They are not intended for sale in the ordinary course of operations. The change innon-financial assets during the year, together with the annual surplus/deficit, provides the consolidatedchange in net financial assets for the year.

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k) Tangible Capital Assets and Amortization:

Tangible capital assets are recorded at cost less accumulated amortization. Cost includes all costsdirectly attributable to acquisition or construction of the tangible capital asset including transportationcosts, installation costs, design and engineering fees, and site preparation costs. The City does notcapitalize interest costs associated with the acquisition or construction of a tangible capital asset.Contributed tangible capital assets are recorded at fair value at the time of the donation, with acorresponding amount recorded as revenue. Amortization is recorded on the basis of straight-line ordeclining balance over the estimated useful life of the tangible capital asset, as follows:

Transportation Infrastructure: Roads (surface) Straight-line 25 years Roads (base) Straight-line 75 years Bridges Straight-line 50 to 75 years Sidewalks Straight-line 25 to 50 years Traffic signals Straight-line 15 years Street lighting Declining balance 5% Parking meters Declining balance 10%

Storm Sewers Straight-line 75 years

Sanitary Sewer Infrastructure Straight-line 75 years

Buildings Straight-line 35 to 60 years

Vehicles Straight-line 7 to 29 years

Miscellaneous Equipment Straight-line 10 to 30 years

Information Technology Declining balance 40%

Natural Gas System Straight-line 35 years

l) Reserves:

Statutory reserve funds are used for future capital expenses as designated by bylaw and City Council.Non-statutory reserves are amounts set aside from past and current operations and are not governed bybylaw.

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m) Employee Future Benefits:

The City and its employees make contributions to the Municipal Pension Plan. As this plan is amulti-employer plan, the City’s contributions are expensed as incurred.

Sick leave and other retirement benefits are also available to the City’s employees. The costs of thesebenefits are determined based on service and best estimates of retirement ages and expected futuresalary and wage increases. The obligations under these benefit plans are accrued based on projectedbenefits as the employees render services necessary to earn future benefits.

n) Government Transfers:

Government transfers are recognized as revenue in the period in which the event giving rise to thetransfer occurs, provided the transfers are authorized, any eligibility criteria have been met, andreasonable estimates of the amounts can be made. Transfers received in the current year that do notmeet these criteria are recorded as accrued liabilities.

o) Budget Figures:

The budget figures are from the annual Financial Plan Bylaw. They have been reallocated to conformto PSAB financial statement presentation requirements where appropriate. Subsequent amendmentshave been authorized by City Council to reflect changes in the budget. Such amendments are notreflected in the financial statement budget figures (note 24.)

p) Comparative Figures:

Certain comparative figures have been reclassified to conform to the financial statement presentationadopted in the current year.

q) Segment Disclosures:

Segmented financial information is presented in groups of distinguishable activities in a similar approachto the City’s internally reported cost centres. These segments are structured in a fashion to assist usersof financial statements in understanding and identifying the resources allocated to support commonlyrecognized functions of the City. Segments are identified primarily by function and secondarily byorganizational relationship. Revenues are allocated to segments when there is a direct cause andeffect relationship to the expenses of those segments. Revenues that cannot be reasonably allocatedin such a manner are considered common to the City as a whole and reported in general government(note 22.)

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2. Cash and Cash Equivalents:

2015 2014

Restricted: Deferred charges $ 9,584 $ 8,360 Deferred revenue 3,440 4,693 Statutory reserves 1,791 1,803

14,815 14,856 Unrestricted: 40,630 30,698

$ 55,445 $ 45,554

The City has access to an operating line of credit not exceeding $2.0 million. Interest is accrued based on Valley First, A Division of First West Credit Union's prime lending rate plus 0.25%. As of December 31, 2015, this line of credit was not being utilized (2014- NIL).

3. Portfolio Investments:

Portfolio investments are comprised of pooled investments in the Municipal Finance Authority Bond Fund. Asof December 31, 2015, all such investments represented development cost charges. Portfolio investments arerecorded at their cost and written down to reflect losses in value that are other than temporary.

4. Accounts Receivable:

2015 2014

Property taxes $ 4,543 $ 4,091 Utility billings 6,931 6,905 Other governments 5,609 6,941 Trade and other receivables 1,528 1,989

18,611 19,926 Allowance for doubtful trade accounts receivable (125) (125)

$ 18,486 $ 19,801

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5. Municipal Finance Authority – Deposits and Reserves:

The City issues most of its debt through the MFA. As a condition of these borrowings, a portion of thedebenture proceeds are withheld by the MFA as a debt reserve fund. The City also executes demand notesin connection with each debenture whereby the City may be required to pay certain amounts to the MFA. (Seenote 21(b)). The details of the cash deposits withheld from debenture proceeds and demand notes at yearend are as follows:

Demand Notes

Cash Deposits 2015 2014

MFA deposits and reserves - general $ 1,087 $ 487 $ 1,574 $ 1,561 MFA deposits and reserves - sewer 533 315 848 832

$ 1,620 $ 802 $ 2,422 $ 2,393

6. Land Under Development:

In 2008, development activity began for both Hesperia Development Corporation and CBW DevelopmentCorporation. The accumulated value of $3,149,000 (2014 - $3,142,000) is comprised of the historical cost ofthe land plus all design, engineering, and related costs incurred to date. Such costs have not been included intangible capital assets since the land and improvements are subject to resale upon completion of thedevelopment.

7. Accounts Payable and Accrued Liabilities:

2015 2014

Trade accounts payable and other accrued liabilities $ 11,995 $ 12,604 Salaries, wages and related costs 4,393 3,911

16,388 16,515

Deferred revenue Prepaid property taxes 3,179 2,871 Deposits and holdbacks 2,501 2,386 Prepaid fees and charges 78 46

5,758 5,303 $ 22,146 $ 21,818

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8. Deferred Charges:

Deferred Charges include Sidewalk Gifting Funds and Development Cost Charges (DCC’s). Sidewalk GiftingFunds are charged to developers through a works contribution agreement requiring the City to use funds forfuture sidewalks adjacent to each property. DCC's are collected to pay for 95% of the general capital costs dueto development and 90% of utility capital costs on specified projects. In accordance with the Local GovernmentAct, these funds must be deposited into a separate reserve fund. DCC’s are deferred and recognized asrevenue when the related costs are incurred.

2015 2014

Deferred charges Development cost charges - roads $ 2,841 $ 1,623 Development cost charges - storm 1,533 1,811 Development cost charges - sewer 3,375 3,133 Sidewalk gifting funds 1,835 1,793

$ 9,584 $ 8,360

Deferred charges, beginning of year $ 8,360 $ 7,382 DCC's levied during the year 1,855 2,017 Sidewalk gifting funds received 41 74 Investment income 128 201

Contributions available 10,384 9,674 Capital transfers 448 950 Operating transfers 352 364

Deferred charges, end of year $ 9,584 $ 8,360

9. Deferred Revenue:

2015 2014

Recreation Facility Major Maintenance $ 1,712 $ 1,697 Recreation Facility Replacement (Civic) 921 912 Recreation Facility Operating 807 2,084

$ 3,440 $ 4,693

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10. Debt:

Purpose of Bylaw Interest Rate %

Year of Maturity

Gross Debt

Sinking Fund Asset

2015 Net Debt

2014 Net Debt

General Purposes: 4717 Fortis BC Gas Lease * 5.25% 2019 $ 24,500 $ 16,794 $ 7,706 $ 9,409 4718 Fortis BC Gas Lease * 9.85% 2037 1,185 51 1,134 1,149 4624 Downtown Revitalization 1.80% 2020 388 232 156 183 4625 Downtown Revitalization 1.80% 2020 128 77 51 61 4728 Downtown Revitalization 1.80% 2020 211 127 84 99 4739 Various 1.80% 2020 4,675 2,803 1,872 2,204

31,087 20,084 11,003 13,105

Sewer Purposes: 1214BJ Blue Jay Specified Area 5.99% 2017 100 85 15 22 4889 Reclaimed Water Line 1.80% 2020 1,061 636 425 500 4680 Treatment Plant Phase I 6.06% 2027 5,000 1,856 3,144 3,332 4680 Treatment Plant Phase II 4.90% 2028 2,038 680 1,358 1,431 4791 Water Reclamation Plant 1.80% 2030 12,556 3,620 8,936 9,366

20,755 6,877 13,878 14,651

$ 51,842 $ 26,961 $ 24,881 $ 27,756

* See Note 16. for capital lease liabilities.

11. Future Payments and Sinking Fund Additions:

General Sewer Total

2016 $ 1,254 $ 544 $ 1,798 2017 1,254 544 1,798 2018 1,254 541 1,795 2019 1,254 541 1,795 2020 307 541 848 2021 & thereafter 1,053 4,439 5,492

6,376 7,150 13,526 Actuarial adjustments 4,627 6,728 11,355

$ 11,003 $ 13,878 $ 24,881

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12. Tangible Capital Assets:

Cost December 31, 2014 Additions Disposals December 31 2015

Land $ 258,738 $ 4,166 $ - $ 262,904 Buildings 64,724 814 - 65,538 Vehicles 11,977 409 453 11,933 Miscellaneous equipment 1,607 277 - 1,884 Information technology 2,898 266 311 2,853 Transportation infrastructure 208,741 4,660 842 212,559 Storm drain infrastructure 75,855 2,719 143 78,431 Sanitary sewer infrastructure 97,672 1,683 80 99,275 Other leasehold equipment 25,295 - - 25,295

$ 747,507 $ 14,994 $ 1,829 $ 760,672

Accumulated Amortization December 31, 2014 Amortization Amortization on Disposals December 31 2015

Buildings $ 22,055 $ 1,638 $ - $ 23,693 Vehicles 6,464 660 374 6,750 Miscellaneous equipment 992 38 - 1,030 Information technology 1,831 427 244 2,014 Transportation 91,932 5,871 622 97,182 Storm drainage infrastructure 20,148 1,003 26 21,125 Sanitary sewer infrastructure 25,202 1,331 33 26,500 Other leasehold equipment 8,673 723 - 9,395

$ 177,297 $ 11,691 $ 1,299 $ 187,689

Net Book Value December 31, 2014 December 31 2015

Land $ 258,738 $ 262,904 Buildings 42,669 41,845 Vehicles 5,512 5,183 Miscellaneous equipment 615 854 Information technology 1,067 839 Transportation infrastructure 116,809 115,377 Storm drain infrastructure 55,708 57,306 Sanitary sewer infrastructure 72,470 72,775 Other leasehold equipment 16,622 15,900

$ 570,210 $ 572,983

See Note 16. for leasehold equipment.

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12. Tangible Capital Assets: (continued)

a) Work-in-progress

Work-in-progress is comprised of costs related to projects currently under planning, development orconstruction that will result in a finished asset at a future date . Such costs are capitalized until suchtime as the property is ready for use. Work-in-progress having a value of $13,648,000(2014 - $14,146,000) has not been amortized. Amortization of these assets will commence the yearfollowing when each specific 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 assets received during the year is $4,260,000 (2014 - $2,361,000) comprised oftransportation infrastructure in the amount of $1,869,000 (2014 - $1,293,000), storm drain infrastructurein the amount of $688,000 (2014 - $613,000) and sanitary sewer infrastructure in the amount of$570,000 (2014 - $446,000) and land in the amount of $1,133,000 (2014 - $9,000).

c) Tangible Capital Assets Disclosed at Nominal Values

Where an estimate of fair value is not determinable, the tangible capital asset is recognized at a nominalvalue.

d) Intangible Assets

The city manages and controls various works of art and non-operational historical cultural assetsincluding buildings, artifacts, paintings and sculptures located at city sites and public display areas.These assets are not recorded as tangible capital assets and are not amortized.

e) Write-down of Tangible Capital Assets

Tangible capital assets are written down when conditions indicate that they no longer contribute to theCity’s ability to provide goods and services. Any impairment is accounted for as an expense in theconsolidated statement of operations. No impairments were identified or recorded during the year endedDecember 31, 2015 and 2014.

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13. Accumulated Surplus:

Accumulated surplus consists of individual fund surpluses and reserves. Operating surplus for the City is asfollows:

2015 2014

Accumulated surplus per Statement of Financial Position $ 596,297 $ 582,200

Less: Tangible capital assets (572,983) (570,210) Debt 24,881 27,756

48,195 39,746

Non-Statutory Reserves Budget Carry-over Reserve General 2,440 1,147 Budget Carry-over Reserve Sewer 49 49 Capital Reserves General 9,741 8,094 Capital Reserves Sewer 10,735 10,249 Operating Reserves General 204 262 Tax Equalization Reserves General 5,185 4,415 Tax Equalization Reserves Sewer 7,466 6,076 Special Purpose Reserves 5,363 4,655 Fortis BC Lease Legacy Reserve 2,728 2,302

43,911 37,249

Statutory Reserve Funds Highway Access to Water Reserve 608 602 Land Sale Reserve 175 227 Local Improvement Reserve 834 825 Parkland Reserve Equity 175 149

1,792 1,803 Total Restricted Funds 45,703 39,052 Unappropriated Surplus $ 2,492 $ 694

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14. Property Tax Revenue:

Total tax revenue net of transfers of taxes collected for other governments and agencies were as follows:

2015 2014

Specific assessments: Residential $ 20,585 $ 18,065 Business 10,918 9,379 Utilities 279 276 Light industrial 519 444 Non-profit 130 113 Farm land 5 3

32,436 28,280 Payments in lieu of taxes 1,235 1,263 Specified area taxes and other 1,524 2,870

$ 35,195 $ 32,413

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15. Transfers from Other Governments

2015 2014

Federal government transfers Transportation infrastructure $ 2,350 $ 3,128 Keep of prisoners 233 257 Recreational initiatives 50 - Economic development 10 -

2,643 3,385

Provincial government transfers Casino revenue sharing 2,043 2,005 Transit subsidy 2,047 1,876 Hotel tax 617 559 Transportation infrastructure 970 422 Traffic fine revenue 544 394 Carbon tax rebate 86 88 Bike BC grant - 83 Insurance Corporation of BC 36 56 Emergency management 24 52 Tourism BC 30 25 Municipal Insurance Agency 49 14 BC Hydro initiatives 5 4 Safe communities project 6 -

6,457 5,578

Other government transfers Recreational initiatives 1,069 1,583 Okanagan Basin Water Board 126 120 Regional initiatives 37 18 Community development initiatives 5 - Laker's Clubhouse - 15 COR safety program 94 13 Interior Health Authority - 5 Canada Day celebrations - 4

1,331 1,758 $ 10,431 $ 10,721

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16. Natural Gas System Lease Agreements:

The City has entered into an agreement with BC Gas Utility Ltd. (now known as Fortis BC Gas Inc. andhereafter referred to as “Fortis BC”) which has resulted in the creation of the Natural Gas Legacy Fund.

a) Leased tangible capital assets:

Under the terms of the agreement, the City has entered into a 35-year lease of tangible capital assetscommencing December 1, 2002 for the natural gas distribution system within the City boundary. TheCity has prepaid $23,750,000 of the capital lease obligation and has financed the prepayment throughdebenture debt (Debt Bylaw #4717 and 4718, note 10.) The remaining obligation, which is included indebt, will be paid with annual lease payments of $127,884 including interest based on FortisBC-approved pre-tax weighted average cost of capital of 9.85%.

b) Operating Lease:

The City has also entered into a 17-year operating lease that commenced December 1, 2002 wherebythe City leases back to Fortis BC the operation of the gas distribution system. Under the operatinglease, Fortis BC is obligated to make annual lease payments to the City that are calculated by a formulaspecified in the agreement which is based on the total annual revenue generated by the transaction.The lease revenue in 2015 was $2,017,000, ($2,069,000 in 2014). At the end of the 17-year term,Fortis BC has the option of making a termination payment equal to the unamortized portion of the City’s$23,750,000 prepayment under the lease of tangible capital assets, which is estimated to be$12,214,000 or negotiate a new 18-year operating lease with a continuation of the annual leasepayments which existed under the previous 17-year operating lease agreement.

17. Long-term Agreements with the Regional District of North Okanagan (the "Regional District"):

a) Water Agreement

The City has entered into a five-year agreement with the Regional District for the operation of the watersystem in Vernon and Electoral Areas B and C and owned by the Regional District. This agreementreplaces a 10-year agreement expiring January 31, 2013. Under this agreement, the City isresponsible for the day-to-day operation of the water system within the City and Areas B and C, and iswholly reimbursed by the Regional District for the operating expenses made to undertake these duties.The agreement expires January 31, 2018.

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17. Long-term Agreements with the Regional District of North Okanagan (the "Regional District"):(continued)

b) Parks Agreements

The City entered into an agreement with the Regional District to assume responsibility for themanagement and operation of local parks commencing January 1, 2014. This results in a shift intaxation by way of a reduction in the tax requisition from the Regional District to the direct taxresponsibility of the City. The amount of tax shift in 2014 was $1,247,000. The agreement also involvesthe transfer of park land between both parties so that local parks within the City are owned and operatedby the City and designated sub-regional parks are owned and operated by the Regional District.

Under this agreement each jurisdiction levies and contributes Parks development cost chargesaccording to the Regional District development cost charges bylaw. Development cost charge amountsare then allocated on the basis of contributions for use in those jurisdictions. The amountallocated to the City of Vernon as of December 31, 2015 was $1,849,000 (2014 - $2,006,000).

The City has entered into a three year agreement with the Regional District to assume responsibility forthe management and operation of sub-regional parks commencing January 1, 2014 and endingDecember 31, 2016. As at December 31, 2014 the City transferred to the Regional District park land withfair market value approximating $23,941,000 (historical cost $1,861,000) and the Regional Districttransferred park land to the City with fair market value approximating $14,855,000. Additional parkland, owned by the Regional District, with fair market value approximating $1,687,000 had not yet beentransferred to the City as of December 31, 2015.

c) Recreation Agreements

The City entered into a five year agreement with the Regional District to assume responsibility for themanagement and operation of local recreational facilities commencing January 1, 2014 and endingDecember 31, 2018. This will result in a shift in taxation, by way of a reduction in the tax requisition fromthe Regional District to the direct tax responsibility of the City commencing 2015. The amount of tax shiftcommencing 2015 is $2,282,000. The agreement also involves the transfer of recreation facilities andrelated land from the Regional District to the City to re-align responsibility for the facilities andprogramming to the City. As at December 31, 2014 the Regional District transferred to the Cityrecreation facilities and land with fair market value approximating $1,487,000. Facilities and land,owned by the Regional District, with fair market value approximating $26,374,000 had not yet beentransferred to the City as of December 31, 2015.

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18. Expenses by Object:

2015 2014

Salaries and wages $ 25,771 $ 23,740 Contracted services 14,337 12,082 RCMP contract 7,437 7,464 Amortization of tangible assets 11,691 11,422 Supplies, materials and other 2,765 3,960 Bank charges and net loss on capital assets 1,631 1,728 Utilities, telephone and insurance 3,759 4,049 Equipment charges 1,760 1,542

$ 69,151 $ 65,987

19. Commitments:

The City has entered into a lease agreement for a transit maintenance facility with BC Transit for 40 years withtwo 10 year renewal options. The 40-year lease was prepaid in full in the amount of $1,310,000 uponoccupancy by BC Transit of the site in November 2011.

20. Cemetery Care Trust Fund:

The City owns and maintains Pleasant Valley Cemetery. Pursuant to provincial legislation, a Cemetery CareTrust Fund was established to ensure continuity of cemetery maintenance. A portion of all plot sales andmemorial setting fees is credited to this Fund. Although the Fund balance is not included in the consolidatedfinancial statements, all investment earnings during the year are transferred into general revenue as permittedby law.

2015 2014

Trust Fund Continuity: Balance, beginning of year $ 726 $ 700 Interest earned 19 14 Proceeds from plot sales and memorial settings 31 26 Transfers to general fund for maintenance (19) (14) Balance, end of year $ 757 $ 726

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21. Contingent Liabilities:

a) Regional District:

The City is responsible as a member of the Regional District for its proportional share of operatingdeficits related to functions in which it participates. Under the provisions of the Local Government Act,the Regional District’s debt is a joint and several liability of the Regional District and each of its membermunicipalities including the City.

b) MFA Demand Notes:

Debentures are covered by a loan agreement with the MFA which provides that, if at any time thepayments provided for in the agreement are not sufficient to meet the authority’s obligations in respect ofsuch borrowings, the resulting deficiency becomes a proportional liability of each member localgovernment, including the City. As these demand notes are contingent in nature, no liability is recorded.

c) Municipal Insurance Association:

In 1987, the City entered into a self-liability insurance plan with several other local governments in BritishColumbia forming the Municipal Insurance Association of B.C. The City is obligated under the plan topay a percentage of its fellow insured’s losses. The City pays an annual premium, which is anticipatedto be adequate to cover any losses incurred.

d) Legal Claims:

The City has been named defendant in several uninsured legal actions. No reserve or liability has beenrecorded regarding any of the legal actions and any possible claims because the amount of loss, if any,is not determinable. Settlement, if any, made with respect to these actions, will be accounted for as anexpense in the period in which realization is known.

e) Pension Liability:

The City 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 administrating theplan, including investment of assets and administration of benefits. The plan is a multi-employerdefined benefit pension plan. Basic pension benefits provided are based on a formula. As atDecember 31, 2014 the plan has about 185,000 active members and approximately 80,000 retiredmembers. Active members include approximately 37,000 contributors from local government.

Every three years, an actuarial valuation is performed to assess the financial position of the plan andadequacy of plan funding. The actuary determines an appropriate combined employer and membercontribution rate to fund the plan. The actuary's calculated contribution rate is based on the entry-agenormal cost method, which produces the long-term rate of member and employer contributions sufficientto provide benefits for average future entrants to the plan. This rate is then adjusted to the extent there isamortization of any funding deficit.

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21. Contingent Liabilities: (continued)

e) Pension Liability: (continued)

The most recent valuation for the Municipal Pension Plan as at December 31, 2012, indicated a $1,370million funding deficit for basic pension benefits on a going concern basis. The next valuation will be asat December 31, 2015, with results available in 2016.

Employers participating in the plan record their pension expense as the amount of employercontributions made during the fiscal year (defined contribution pension plan accounting). This is becausethe plan records accrued liabilities and accrued assets for the plan in aggregate, resulting in a consistentand reliable basis for allocating the obligation, assets and cost to individual employers participating inthe plan.

The City of Vernon paid $2,075,000 (2014 - $1,856,000) for employer contributions while employeescontributed $1,758,000 (2014 - $1,584,000) to the plan in fiscal 2015.

f) Letter of Credit:

In 2007, the City issued an Irrevocable Letter of Credit in favour of the Agricultural Land Commission(ALC) of British Columbia as a guarantee to fund works required by the ALC as a condition of theproperty being removed from the Agricultural Land Reserve. The amount of the Letter of Credit is$716,000. As of December 31, 2015, no drawing on the Letter of Credit has occurred.

22. Segmented Information:

Segmented information has been grouped into related department functions or service areas for segmentreporting purposes provided in note 23 which shows the associated revenues and expenses for each segment.The various segments are described as follows:

a) General Government:

This segment is comprised of all general government and common services provided within the City. Itincludes legislative services, corporate administration, City Clerk’s office, tourism, finance, humanresources, information services, civic building maintenance, bylaw compliance, parking control, andsubsidiary corporations.- Legislative services and corporate administration are responsible for general government

administration including council support, conducting elections and records management. - Tourism is responsible for tourism marketing and managing the City's tourist booth location.- Finance is responsible for the oversight of all financial matters including financial planning,

collection of revenues, purchasing and financial reporting. - Human resources are responsible for staff recruiting, payroll processing, occupational health and

safety and labour relations.

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22. Segmented Information: (continued)

a) General Government: (continued)Information services are responsible for planning, maintaining and operating the City’s information systems.

- The GIS department catalogues the city’s infrastructure geographically for use by the City and its citizens.

- Civic building maintenance is responsible for maintaining all buildings owned by the City. - Bylaw compliance and parking control is responsible for administrating and encouraging compliance

to regulatory bylaws, patrolling City owned/leased paid parking lots, residential permit zones and restricted parking areas. They also patrol and maintain almost 1,000 parking meters. This function focuses on community security and safety programs in conjunction with police services.

- The City’s subsidiary corporation is 100% owned. - Revenues associated with this segment include all those amounts that can not be attributed directly

to other segments including taxation, grants in lieu, interest revenue and property rental revenue.

b) Protective Services:

This segment is comprised of police services, plus fire and rescue and emergency measures services.- Police services are contracted to the RCMP with support assistance from municipal staff. The city is

home to a regional detachment for the North Okanagan. The City has a proactive community policing group that provides programs for its citizens and businesses such as citizens on patrol, crime stoppers, block watch and safety patrols.

- Fire and rescue services provide fire response, investigation and prevention services within the City’s fire department.

- Emergency measures services include a contract to provide services within other jurisdictions of the North Okanagan. This program is responsible for emergency planning within the community and is engaged when more than one individual member may be affected by an emergency situation.

c) Planning and Engineering:

This segment is comprised of community development, planning, building inspections services and thecapital works program.- Community Development is responsible for sustainable development throughout the City including

environmental, economic and social development. - Planning is responsible for land use planning – long term and short term – plus the administration of

the Official Community Plan and zoning bylaws. - Buildings Inspections is responsible for issuing permits for any developments in the City including

building permits, rezoning and development permits. - Engineering is responsible for the planning and implementation of the capital works program for all

infrastructure - storm, sewer and transportation. They work in conjunction with Planning and Operations.

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22. Segmented Information: (continued)

d) Operations:

This segment is responsible for the operation and maintenance of the city’s infrastructure assetsincluding roads, sidewalks and storm drains. Other components include public transit, solid waste andrecycling, cemetery and airport.- Road transportation encompasses year round maintenance of roads, street lights, signs and

sidewalks; plus the public transit system which is contracted with BC Transit with subsidies provided from the Province

- Storm drainage includes the maintenance of storm infrastructures including mains, manholes and catch basins.

- The Vernon Regional Airport provides services to small aircraft and executive jets in the region and includes a paved lighted runway, hangars, jet and regular air fuel dispensing.

- Solid waste and recycling services are contracted with the Regional District of North Okanagan. - The City has one cemetery whose operation is overseen by the Operations group. Other services

provided within the City include; overseeing fleet activities and support for the Regional District water services and parks and recreation services.

e) Sanitary Sewer Operations:

This segment is responsible for the entire sanitary sewer operation and maintenance of the sewerinfrastructures including mains, manholes, catch basins and lift stations. Plus, it is responsible for theoperation and maintenance of the Vernon Water Reclamation Centre and spray irrigation system.

f) Recreation:

This segment is responsible for the management, maintenance and operation of all recreation facilitieswithin the City. This includes planning and delivery of recreation programs for all ages of citizens,maintenance and operation of all arenas and indoor pool. As well as operating two outdoor pools in thesummer.

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23. Segmented Disclosure:

General Government

Protective Services

Planning & Engineering Recreation

Operations Services

Sanitary sewer 2015 2014

Revenue Taxation $ 35,161 $ - $ - $ - $ - $ 34 $ 35,195 $ 32,413 Services to other governments 496 547 169 1,070 1,046 568 3,896 6,088 Government transfers 4,840 822 351 1,163 3,127 128 10,431 10,721 Sale of services 2,845 252 1,836 3,253 3,958 9,279 21,423 20,711 Fiscal services 4,829 - - - (338) 221 4,712 13,961 Transfers of assets from developers - - 40 - 4,173 870 5,083 3,722 Natural gas system agreement 2,508 - - - - - 2,508 2,509

50,679 1,621 2,396 5,486 11,966 11,100 83,248 90,125

Expenses Salaries and wages 6,374 7,893 3,145 3,478 3,160 1,720 25,770 23,740 Contracted services 1,588 264 949 2,144 8,480 912 14,337 12,082 RCMP contract - 7,437 - - - - 7,437 7,464 Amortization of tangible assets 1,994 209 - - 6,909 2,579 11,691 11,422 Supplies, materials and other (328) 351 259 (62) 1,631 914 2,765 3,960 Bank fees and net loss on assets 895 - - 31 - 704 1,630 1,728 Utilities, telephone and insurance 686 218 12 985 923 936 3,760 4,049 Equipment charges 82 184 56 41 1,118 280 1,761 1,542

11,291 16,556 4,421 6,617 22,221 8,045 69,151 65,987 Excess (deficiency) revenue over

expenses $ 39,388 $ (14,935) $ (2,025) $ (1,131) $ (10,255) $ 3,055 $ 14,097 $ 24,138

116


24. Budget Data:

The budget data presented in these consolidated financial statements is based upon the 2015 operating andcapital budgets approved by Council on February 10, 2015. The schedule below reconciles the approvedbudget to the budget figures reported in these consolidated financial statements.

Budget Amount

Revenue: Operating budget $ 81,297 Capital budget 1,234

82,531 Less:

Transfers from other funds and reserves 10,480 RDNO water contract 3,308

(13,788) Total Revenue 68,743

Expenses: Operating budget 82,625 Capital budget 11,136

93,761

Less: Capital expenses 11,136 Transfers to other funds and reserves 6,706 Debt principal payments 1,738 RDNO water contract 3,308

(22,888) Total Expenses 70,873 Annual Deficit $ (2,130)


117

SUPPLEMENTARY FINANCIAL INFORMATION(UNAUDITED)

118

The Corporation of the City of Vernon Schedule of General Revenue Fund Operations (unaudited)

December 31, 2015 (in thousands of dollars) Budget 2015

Actual 2015

Actual 2014

General Revenue Taxation $ 34,298 $ 35,161 $ 31,984 Services provided to other local governments 3,301 3,327 5,601 Government transfers 6,868 10,303 10,480 Sale of services 10,837 12,144 11,355 Fiscal services 952 1,164 1,155 Natural gas system agreement 2,499 2,508 2,509 Developer contributions of assets 50 4,213 2,893

58,806 68,820 65,977

General Expenses General government and common services 9,878 9,701 9,181 Bylaw compliance and parking control 1,100 1,097 1,118 Protective Services

Police 10,905 10,460 10,417 Fire and rescue 5,462 5,916 4,640 Emergency measures 154 180 330

Planning and building inspection 2,083 2,283 1,861 Engineering 2,567 2,138 2,079 Operations

Road transportation 15,219 14,702 14,364 Solid waste and recycling 1,816 1,726 1,861 Park services 1,923 1,924 1,735 Storm drainage 1,277 1,235 1,268 Airport 1,164 1,147 1,177 Other 565 764 439 Cemetery 194 230 259

Recreation 7,630 6,618 6,346

61,937 60,121 57,075

General Surplus, before reconciling items (3,131) 8,699 8,902

Add (subtract): Amortization of tangible assets 8,783 9,112 8,931 Transfers from reserves 4,424 5,895 4,033 Acquisition of capital assets (5,640) (7,022) (6,850) Net gain on sales of assets - (2,562) (11,946) Debt principal payments (1,233) (1,233) (1,231) Transfers to reserves (3,601) (10,719) (11,711)

Surplus / (Deficit), for purposes of balanced budget and tax rate determination $ 1 $ 2,170 $ (9,872)


119

The Corporation of the City of Vernon Schedule of Sewer Revenue Fund Operations (unaudited) Exhibit 2

December 31, 2015 (in thousands of dollars) Budget 2015

Actual 2015

Actual 2014

Sewer Revenue Taxation $ 33 $ 34 $ 429 Services provided to other governments 442 568 487 Government transfers 126 126 120 Sale of services 9,333 9,278 9,357 Fiscal services - 221 87 Developer contributions of assets - 870 829

9,934 11,097 11,309

Sewer Expenses Common services 1,229 453 314 Collection system 1,975 2,041 2,007 Treatment system 3,717 4,331 4,313 Disposal system 1,553 1,644 1,732 Pump stations 462 560 533

8,936 9,029 8,899

Sewer Surplus, before reconciling items 998 2,068 2,410

Add (subtract): Amortization of tangible assets 2,447 2,579 2,490 Transfers from reserves 6,743 1,766 2,937 Acquisition of capital assets (6,579) (1,473) (2,884) Net gain on sales of assets - (47) (152) Debt principal payments (505) (505) (505) Transfers to reserves (3,105) (3,652) (4,276)

Surplus, for purposes of balanced budget and user rate determination $ (1) $ 736 $ 20


120

Statistical Section

121

(In $1,000's) 2011 2012 2013 2014 2015FINANCIAL POSITION

Financial Assets 56,807$ 58,676$ 62,589$ 76,102$ 84,831$

Liabilities 67,368 66,659 63,648 65,020 62,473

Net Financial Assets (Debt) (10,561) (7,983) (1,059) 11,082 22,358

Non-financial Assets 565,765 563,796 559,121 571,118 573,939

Accumulated Surplus, end of year 555,204$ 555,813$ 558,062$ 582,200$ 596,297$

STATEMENT OF OPERATIONS

Revenue 59,826$ 59,257$ 59,297$ 90,125$ 83,248$

Expenses 54,626 58,648 57,048 65,987 69,151

Annual Surplus 5,200 609 2,249 24,138 14,097

Accumulated Surplus, beginning of year - 555,204 555,813 558,062 582,200


ACCUMULATED SURPLUS

Tangible capital assets 529,290$ 529,610$ 527,956$ 542,454$ 548,102$

Statutory reserves 1,745 1,838 1,747 1,804 1,792

Non-statutory reserves 24,968 24,972 28,234 37,249 43,911

Operating surplus (799) (607) 125 693 2,492


Summary of Financial Results 2015

$(20,000)

$(10,000)

$-

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

2011 2012 2013 2014 2015

Summary of Financial Results(in $1,000's)

OperatingsurplusNon-statutoryreservesStatutoryreservesNet FinancialAssets (Debt)

122

(In $1,000's except for per-capita figures) 2011 2012 2013 2014* 2015*

Equity in Tangible Capital Assets:General 440,913$ 441,279$ 440,657$ 453,924$ 459,584$

Sewer 88,377 88,331 87,299 88,530 88,518 529,290$ 529,610$ 527,956$ 542,454$ 548,102$

Non-Capital Accumulated Surplus:Statutory Reserves 1,745$ 1,838$ 1,747$ 1,804$ 1,792$

Non-Statutory Reserves:

Funds Committed for Uncompleted Projects 2,487 3,593 5,010 1,196 2,489

Capital Purposes 16,496 15,867 16,154 19,055 20,476

Operating Purposes 1,052 643 885 5,327 5,567

Tax & User Rate Equalization 3,499 3,587 4,361 9,369 12,651

Natural Gas System Lease Arrangement 1,434 1,282 1,824 2,302 2,728

24,968 24,972 28,234 37,249 43,911

Operating Funds (799) (607) 125 693 2,492

25,914$ 26,203$ 30,106$ 39,746$ 48,195$

NON-CAPITAL ACCUMULATED SURPLUS (FINANCIAL EQUITY) PER CAPITA 666$ 679$ 778$ 1,015$ 1,190$

TOTAL ACCUMULATED SURPLUS 555,204$ 555,813$ 558,062$ 582,200$ 596,297$

Accumulated Surplus 2015

*There was an asset swap with RDNO resulting in a net increase in assets valued at $2,999,000 (2014 - $12,047,000).

$(10,000)

$-

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

2011 2012 2013 2014 2015

Non-Capital Accumulated Surplus (Financial Equity)(in $1,000's)

Operating Funds

Non-Statutory ReservesStatutory Reserve Funds

123

(in $1,000's except for per-capita figures) 2011 2012 2013 2014** 2015***

Residential 15,462$ 15,691$ 16,469$ 18,065$ 20,585$ Commercial 7,405 8,041 8,465 9,379 10,919 Light Industrial 334 376 409 444 518 Utility & Other 380 370 382 392 414

23,581$ 24,478$ 25,725$ 28,280$ 32,436$ *Excludes specified area taxation (included in Revenue by Source schedule).**Increase in taxation partially due to transition of Parks function to the City, away from RDNO.

***Increase in taxation partially due to transition of Recreation function to the City, away from RDNO.

PROPERTY TAX REVENUE PER CAPITA - General & Fire Taxes 606$ 635$ 665$ 722$ 801$

RATIO OF TAX RATES - COMMERCIAL TO RESIDENTIAL (General Taxes Only) 2.67 2.66 2.62 2.57 2.74

TOTAL PROPERTY TAXES COLLECTED 58,493$ 60,504$ 61,736$ 62,567$ 64,960$

% OF CURRENT TAXES COLLECTED 97.81% 97.75% 97.92% 97.91% 98.24%

TAXES LEVIED FOR OTHER AGENCIESProvincial School Taxes 20,284$ 20,351$ 20,097$ 19,994$ 20,246$ Regional District of North Okanagan 8,928 9,334 9,376 8,107 5,882 Regional Hospital Districts 1,720 2,069 2,359 2,449 2,519 Okanagan Regional Library 1,485 1,528 1,578 1,632 1,638 Other 575 557 547 545 547

32,992$ 33,839$ 33,957$ 32,727$ 30,832$

Property Tax Revenue 2015

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

2011 2012 2013 2014 2015

Property Tax Revenue - General & Fire (in $1,000's)

Residential Commercial Light Industrial Utility & Other

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

2011 2012 2013 2014 2015

Taxes Levied For Other Agencies

(in $1,000's)

OtherOkanagan Regional LibraryRegional Hospital DistrictsRegional District of North OkanaganProvincial School Taxes

124

(In $1,000's except for per-capita figures) 2011 2012 2013 2014 2015

Property Taxation* 25,524$ 26,450$ 27,750$ 32,413$ 35,195$

Sale of Services & Other 7,643 7,478 7,442 11,354 12,145

Sanitary Sewer Fees 8,754 8,600 9,313 9,357 9,278

Government Grants 5,914 6,942 6,360 10,721 10,431

Services Provided to Other Local Govts 2,411 2,131 2,319 6,088 3,896

Fiscal Services** 1,942 1,603 2,618 13,961 4,712

Natural Gas System Revenue 2,846 2,796 2,596 2,509 2,508

Contributions From Developers 4,792 3,257 899 3,722 5,083

59,826$ 59,257$ 59,297$ 90,125$ 83,248$

*Includes specified area taxation (not included in Property Tax Revenue schedule).

**$2,999,000 gain (2014 - 12,047,000) due to asset swap with RDNO reported in Fiscal Services.

Derived from the General Fund, Sewer Fund, Statutory Reserve Funds, and wholly-owned subsidiaries

TOTAL REVENUE PER CAPITA 1,537$ 1,536$ 1,533$ 2,301$ 2,056$

PROPORTION OF PROPERTY TAXATION

TO TOTAL REVENUE 42.7% 44.6% 46.8% 36.0% 42.3%

Consolidated Revenue by Source 2015

$-

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

2011 2012 2013 2014 2015

Consolidated Revenue by Source (in $1,000's)

Contributions From Developers

Natural Gas System Revenue

Fiscal Services

Services Provided toOther Local GovtsGovernment Grants

Sanitary Sewer Fees

Sale of Services & Other

Property Taxation

125

(In $1,000's except for per-capita figures) 2011 2012 2013 2014 2015General Government 8,209$ 9,617$ 9,379$ 10,063$ 10,098$ Police Services 10,162 10,004 9,744 10,417 10,460 Fire, Rescue & Emergency Services 4,410 4,889 5,502 4,970 6,096 Bylaw Enforcement & Parking Control 1,128 1,138 1,171 1,118 1,097 Planning & Building Inspection 2,055 1,973 1,813 1,861 2,283 Engineering Services 1,214 1,235 1,337 2,079 2,138 Sanitary Sewer Operations 8,380 7,950 7,850 7,924 8,045 Transportation, Parks & Drainage 17,750 17,797 16,932 17,737 19,008 Solid Waste, Recycling & Cemetery 1,955 2,024 2,038 2,120 1,956 Recreation - - - 6,346 6,618 Natural Gas System 2,156 2,021 1,282 1,352 1,352

57,419$ 58,648$ 57,048$ 65,987$ 69,151$

Derived from the General Fund, Sewer Fund, Statutory Reserve Funds, and wholly-owned subsidiaries. For purposes of this

table, all interest, fiscal service expenses, amortization, and capital expenditures have been integrated in their respective functions.

TOTAL EXPENSES PER CAPITA 1,476$ 1,520$ 1,475$ 1,685$ 1,708$

PERCENTAGE CHANGE IN PER-CAPITA EXPENSES FROM PRIOR YEAR 14.9% 3.0% -3.0% 14.2% 1.4%

Consolidated Expenses by Function 2015

$-

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

2011 2012 2013 2014 2015

Consolidated Expenses by Function (in $1,000's)

RecreationNatural Gas SystemSolid Waste, Recycling & CemeteryTransportation, Parks & DrainageSanitary Sewer OperationsEngineering ServicesPlanning & Building InspectionBylaw Enforcement & Parking ControlFire Rescue & Emergency ServicesPolice ServicesGeneral Government

126

(In $1,000's) 2011 2012 2013 2014 2015

Salaries, Wages & Employment Benefits* 18,359$ 19,156$ 20,074$ 23,740$ 25,771$

Supplies, Materials & Other 5,270 5,099 5,079 5,502 4,525

Contracted Services 17,168 17,181 16,043 19,546 21,774

Interest, Fiscal Services & Asset Losses 3,725 3,519 2,164 1,728 1,631

Utilities, Telephone & Insurance 2,184 2,519 2,463 4,049 3,759

Amortization of Tangible Capital Assets 10,713 11,174 11,225 11,422 11,691

57,419$ 58,648$ 57,048$ 65,987$ 69,151$

Derived from the General Fund, Sewer Fund, Statutory Reserve Funds, and wholly-owned subsidiaries

Consolidated Expenses by Object 2015

*Salaries, wages & employment benefits increased substantially in 2014 due to the City taking over responsibility for the operation of Parks and Recreation Services.

$-

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

2011 2012 2013 2014 2015

Consolidated Expenses by Object (in $1,000's)

Amortization ofTangible Capital AssetsUtilities, Telephone& InsuranceInterest, Fiscal Services& Asset LossesContracted Services

Supplies, Materials & Other

Salaries, Wages &Employment Benefits

127

Number of Employees (Full-time Equivalents)* 2011 2012 2013 2014** 2015

Administration & Corporate Services:

General Administation 2.5 2.1 2.0 2.0 2.0

City Clerk's Office 8.8 8.2 8.2 7.9 8.5

Human Resources 6.3 6.4 5.9 7.3 7.4

Information Services 7.7 7.9 7.8 9.4 9.6

Bylaw Enforcement 12.9 12.9 12.9 11.5 11.0

Community Policing Office 7.0 6.8 6.0 5.0 3.8

Finance & Purchasing 18.0 17.9 17.0 17.7 16.8

Engineering & GIS 15.2 14.4 14.5 16.0 15.2

Community Development 19.3 18.4 16.7 16.7 18.7

Fire & Rescue 39.9 40.6 41.5 40.2 39.1

Police (civilian staff) 31.6 31.4 31.7 32.0 30.7

Operations:

Operations Administration 3.4 3.1 3.2 3.0 2.9

Sanitary & Storm Sewers 25.5 26.6 13.9 14.6 17.5

Water ** 16.5 16.6 16.9 16.4 13.3

Public Works 25.8 26.1 28.6 28.5 24.7

Parks ** 11.1 13.5 10.7 10.2 10.8

Fleet & Facilities 13.0 13.1 12.9 11.5 11.9

Vernon Water Reclamation Plant 12.6 12.8 12.9 12.2 13.5

Airport 1.2 1.6 1.6 1.6 1.6

Recreation ** 39.5 40.9 40.1 52.9 55.2

Gross Number of Employees 317.8 321.3 305.0 316.6 314.2

* Full-time equivalent (FTE) is based on the total number of hours worked as a function of standard full-time hours.

** Less: Number of employees for which full employment

costs are recovered by the Regional District of North Okanagan for Parks, Recreation, Water (2014 - Water only) (67.1) (71.0) (67.7) (16.4) (13.3)

Net Number of Employees (relating to total employment

costs recorded by the City of Vernon) 250.7 250.3 237.3 300.2 300.9

Gross FTE Positions per 1,000 Population 8.2 8.3 7.9 8.1 7.8

Net FTE Positions per 1,000 Population 6.4 6.5 6.1 7.7 7.4

Source: City of Vernon Human Resources

Number of Employees (Full-time Equivalents)* 2015

220.0

240.0

260.0

280.0

300.0

320.0

2011 2012 2013 2014 2015

Net Number of Employees (FTE's)

5.0 5.5 6.0 6.5 7.0 7.5 8.0

2011 2012 2013 2014 2015

Net FTE Positions per 1,000 Population

128

(In $1,000's) 2011 2012 2013 2014 2015

Administration & Corporate Services 3,272$ 3,325$ 3,586$ 3,325$ 3,387$

Finance & Purchasing 1,263 1,297 1,317 1,308 1,392

Engineering 987 1,064 957 1,300 1,389

Planning & Building Inspection 1,639 1,555 1,431 1,483 1,756

Fire, Rescue & Emergency Measures 3,585 3,828 4,540 4,268 5,258

Police (civilian staff & community policing office) 2,547 2,565 2,605 2,556 2,635

Operations (new in 2014 - Parks) 5,066 5,522 5,638 6,372 6,475

Recreation (new in 2014) - - - 3,281 3,478

18,359$ 19,156$ 20,074$ 23,893$ 25,770$

Costs are shown net of recoveries received from the RDNO for Parks, Recreation and Water functions. (Water only for 2014 onwards.)

Cost of Salaries, Wages and Benefits 2015

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

2010 2011 2012 2013 2015

Net Cost of Salaries, Wages & Benefits (in $1,000's)

Recreation (new - 2014)

Operations (new - 2014 includes Parks)Police (includesCommunity Policing)Fire, Rescue &Emergency MeasuresPlanning &Building InspectionEngineering

Finance & Purchasing

Administration &Corporate Services

129

(In $1,000's except for per-capita figures) 2011 2012 2013 2014 2015

Roads & Drainage Infrastructure 8,753$ 4,078$ 4,137$ 6,777$ 7,379$

Sanitary Sewer Infrastructure 3,300 1,946 1,692 1,758 1,683

Land Purchases* 513 9 596 12,765 4,166

Vehicle Fleet 323 987 145 649 409

Subsidiary Corporations 827 (52) 31 537 6 General Govt Buildings & Equipment 1,296 1,546 467 3,482 1,091 Information Technology Equipment 430 380 309 419 266

Protective Services Equipment 23 334 - - -

15,465$ 9,228$ 7,377$ 26,387$ 15,000$

*Land purchases increase in 2015 due to asset swap agreement with RDNO resulting in a net asset value gain of $2,999,000 (2014-$12,047,000).

TOTAL CAPITAL SPENDING PER CAPITA 397$ 239$ 191$ 674$ 370$

Capital Spending 2015

$(5,000)

$-

$5,000

$10,000

$15,000

$20,000

$25,000

2011 2012 2013 2014 2015

Capital Spending (in $1,000's)

Protective ServicesEquipmentInformation TechnologyEquipmentGeneral GovernmentBuildings & EquipmentSubsidiary Corporations

Vehicle Fleet

Land Purchases

Sanitary SewerInfrastructureRoads & DrainageInfrastructure

130

(In $1,000's) 2011 2012 2013 2014 2015

General Taxation 5,380$ 283$ 466$ 1,549$ 3,028$

General Non-Statutory Reserves 2,811 3,976 3,452 3,622 1,944

Sanitary Sewer Revenue 1,431 - - 9 -

Sewer Non-Statutory Reserves 18 1,227 1,652 2,937 1,356

Statutory Reserve Funds 322 73 256 119 29

Development Cost Charges 4,681 2,322 51 921 407

Developer Contributions* - 485 485 15,564 7,198

Long-Term Debt Bylaws 174 - - - -

Government Grants & Other 648 1,527 1,015 1,624 1,038

15,465$ 9,893$ 7,377$ 26,345$ 15,000$

PROPORTIONAL BREAKDOWN OF CAPITAL FUNDING

FUNDING

General Taxation 34.8% 2.9% 6.3% 5.9% 20.2%

Sanitary Sewer Revenue 9.3 - - 0.0 -

Reserves 20.4 53.3 72.7 25.3 22.2

Developers 30.3 28.4 7.3 62.6 50.7

Long-Term Debt Bylaws 1.1 - - - -

Government Grants & Other 4.2 15.4 13.8 6.2 6.9

100.0% 100.0% 100.0% 100.0% 100.0%

Capital Funding by Source 2015

*Developer contributions significant differences due to asset swap agreement with RDNO resulting in a net asset value gain in 2015 of $2,999,000 (2014 - $12,047,000).

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

2011 2012 2013 2014 2015

Capital Funding by Source (in $1,000's)

Government Grants & OtherLong-Term Debt BylawsDeveloper ContributionsDevelopment Cost ChargesStatutory Reserve FundsSewer Non-Statutory ReservesSanitary Sewer RevenueGeneral Non-Statutory ReservesGeneral Taxation

131

LONG-TERM DEBT BY FUNCTION

2011 2012 2013 2014 2015Sanitary Sewer 16,782$ 16,101$ 15,395$ 14,651$ 13,879$ Natural Gas System 15,231 13,749 12,192 10,558 8,840 Roads & Drainage 2,620 2,372 2,115 1,847 1,568 General Government 506 459 409 357 303 Downtown Beautification 487 441 393 343 291

35,626$ 33,122$ 30,504$ 27,756$ 24,881$

PROPORTIONAL FUNDING SOURCES FOR LONG-TERM DEBT

Sanitary Sewer Fees 47.0% 48.5% 50.4% 52.7% 55.7%Sanitary Sewer Specified Areas 0.2 0.1 0.1 0.1 0.1 Roads, Drainage & Beautification Specified Areas 8.7 8.5 8.2 7.9 7.5 Natural Gas System Revenue & Reserve 42.8 41.5 40.0 38.0 35.5 General Taxation 1.4 1.4 1.3 1.3 1.2

100.0% 100.0% 100.0% 100.0% 100.0%

All water debt originally incurred by the City of Vernon has been transferred to and is recorded by the Regional District of North

Okanagan when this function was assumed by the Regional District. As such, this debt is not a liability of the City of Vernon and

is not recorded. No overlapping debt exists.

Long Term Debt by Function and Sources of Funding 2015

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

2011 2012 2013 2014 2015

Long-Term Debt by Function (in $1,000's)

DowntownBeautificationGeneral Government

Roads & Drainage

Natural Gas System

Sanitary Sewer

55.7%

0.1%

7.5%

35.5%

1.2%

Long-Term Debt Funding

Sanitary Sewer Fees

Sanitary SewerSpecified Areas

Roads, Drainage &BeautificationSpecified AreasNatural Gas SystemRevenue & Reserve

General Taxation

132

(In $1,000's except for per-capita figures) 2011 2012 2013 2014 2015LONG-TERM DEBT PER CAPITA 916$ 859$ 789$ 709$ 614$

% OF FINANCIAL EQUITY TO LONG-TERM DEBT 70.4% 75.9% 96.5% 139.9% 189.9%

ANNUAL DEBT SERVICING:Estimated Debt Servicing for Authorized Debt - Issued 4,314 4,143 3,442 3,352 2,973 Unissued Debt 25 25 25 25 25 Estimated Debt Servicing for Loan Guarantees 716 716 716 716 716

5,055$ 4,884$ 4,183$ 4,093$ 3,714$

% OF ANNUAL DEBT SERVICING TO TOTAL CONSOLID. EXPENSES & PRINCIPAL PAYMENTS 8.5% 8.1% 7.1% 6.0% 5.2%

LEGAL DEBT SERVICING LIMIT 12,793$ 12,978$ 13,193$ 16,334$ 17,967$

REMAINING DEBT SERVICING LIMIT CAPACITY 7,738$ 8,094$ 9,010$ 12,241$ 14,253$

Long Term Debt Capacity 2015

$- $2,000 $4,000 $6,000 $8,000

$10,000 $12,000 $14,000 $16,000 $18,000 $20,000

2011 2012 2013 2014 2015

Annual Legal Debt Servicing Capacity (in $1,000's)

Capacity AvailableCapacity Currently Used

$600

$800

$1,000

$1,200

1 2 3 4 5

Debt per Capita

133

(in $1,000's) 2011 2012 2013 2014 2015

Residential 5,689,870$ 5,582,742$ 5,406,304$ 5,320,195$ 5,939,468$

Commercial 1,038,220 1,078,428 1,086,765 1,093,901 1,131,080

Light Industrial 41,050 40,771 37,735 37,214 37,813

Recreation & Non-Profit 29,358 29,284 27,050 23,375 22,982

Utility 7,276 7,149 7,138 7,333 7,385

Farm Land & Managed Forest 4,037 4,069 3,920 3,988 3,988

6,809,811$ 6,742,443$ 6,568,912$ 6,486,006$ 7,142,716$

% Change From Prior Year 4.0% -1.0% -2.6% -1.3% 10.1%

AVERAGE SINGLE FAMILY RESIDENTIAL ASSESSED VALUES (in $1,000's)

Land 173$ 168$ 158$ 153$ 159$

Improvements 168 166 164 164 174

341$ 334$ 322$ 317$ 333$

% Change From Prior Year -2.6% -2.1% -3.5% -1.6% 5.0%

Taxable Property Assessments 2015

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

2011 2012 2013 2014 2015

Total Property AssessmentsResidential & Commercial

(in $1,000's)

Residential Commercial

$-

$50

$100

$150

$200

$250

$300

$350

$400

2011 2012 2013 2014 2015

Average Single Family Residential Assessed

Values (in $1,000's)

Land Improvements

134

General & 2014

Rank Category Property Owner Common Name Levied Rank

1 Retail Calloway REIT (Vernon) Inc. Vernon Smart Centre (Including Wal-Mart) 629$ 1

2 Retail Village Green Shopping Centre Inc. Village Green Mall 627 2

3 Retail CP REIT BC Properties Ltd Real Canadian Superstore 369 3

4 Retail Sunstone Holdings Inc. Shops at Polson Park 228 4

5 Retail Realfund Investments (BC) Ltd Vernon Square (Northern Portion) 228 5

6 Hotel 460463 BC Ltd Sparkling Hills Resort 208 6

7 Retail Home Depot Holdings Inc The Home Depot 186 7

8 Office N & T Properties Ltd Kal Tire - Corporate Office 183 8

9 Retail Canadian Tire Corporation Ltd Canadian Tire 143 9

10 Office Timber Facility Ltd Tolko Industries - Corporate Office 127 10

11 Retail Fruit Union Plaza Holdings Ltd Fruit Union Plaza 123 12

12 Retail 5601 Anderson Way Holdings Ltd The Brick & Red Robin 121 11

13 Retail 4246551 Canada Inc Rona 117 14

14 Retail Snowcat Property Holdings Ltd Vernon Square Safeway (Southern Portion) 114 13

15 Retail Loblaw Properties West Inc. Real Canadian Wholesale Club 96 15

16 Brewery Sleeman Breweries Ltd Okanagan Spring Brewery 92 18

17 Entertainment Gateway Casinos & Entertainment Ltd Gateway Casino & Entertainment 89 17

18 Hotel Jassi Holdings Ltd Holiday Inn (Including Ricky's Grill) 87 19

19 Retail Home Hardware Stores Ltd Home Hardware 81 16

20 Retail Jabs construction Ltd Staples, TD Bank, Total Pet, Dry Cleaners 76 20

3,924$

32,436$

12.1%

Total General & Fire Tax Revenue - Top Twenty

Total General & Fire Tax Revenue - City Wide

Proportion of Taxes Paid by Top Twenty

(in $1,000's)

Principal Corporate Tax Payers 2015

Tax Contribution from Principal Corporate Taxpayers

Top Twenty Taxpayers, 12.1%

All Other Taxpayers, 87.9%

135

Building Permit Construction Values (In $1,000's) 2011 2012 2013 2014 2015

Residential 43,749$ 43,991$ 44,244$ 66,057$ 69,131$

Commercial 35,111 16,885 5,311 7,248 39,105

Institutional 35,606 1,084 861 18,632 1,478

Industrial 9,075 326 10 250 60

123,541$ 62,286$ 50,426$ 92,187$ 109,774$

Building Permit Fees (In $1,000's) 733$ 902$ 594$ 479$ 992$

Number of Building Permits Issued 416 327 322 316 381

Business Licence Fees (In $1,000's) 442$ 443$ 433$ 441$ 586$

Number of Licenced Businesses 3,176 3,279 3,244 3,240 3,129

Number of Land Use Applications Processed * 200 98 152 150 151

* Includes applications for Rezoning, OCP Amendment, Development Permit, Development Variance Permit, Board of Variance, ALR, and Subdivision

Source: City of Vernon Planning & Building Division

Building Permits and Business Licences 2015

$-

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

2011 2012 2013 2014 2015

Building Permit Construction Values(in $1,000's)

IndustrialInstitutionalCommercialResidential

$-

$200

$400

$600

$800

$1,000

$1,200

2011 2012 2013 2014 2015

Building Permit Fees(in $1,000's)

$320

$370

$420

$470

$520

$570

$620

2011 2012 2013 2014 2015

Business Licence Fees(in $1,000's)

136

Municipality 2011

Census* Representative

House Value Municipal

Taxes Regional District

Hospital, School &

Other Municipal

Fees Total Taxes &

Fees

Chilliwack 77,936 $ 337,040 $ 1,639 $ 50 $ 1,033 $ 665 3,387

Penticton 32,877 349,298 1,579 89 911 856 3,435 Salmon Arm 17,464 287,834 1,941 77 795 670 3,483

Cranbrook 19,319 254,413 2,094 40 685 714 3,533

Coldstream 10,314 469,412 1,420 472 1,206 563 3,661

Campbell River 31,186 282,173 1,738 233 963 795 3,729

Kamloops 85,678 351,417 1,894 130 1,029 823 3,876

Vernon 38,150 380,867 1,454 262 980 1,208 3,904

Kelowna 117,312 472,517 1,944 165 1,126 710 3,945

Pitt Meadows 17,736 467,735 1,847 28 1,113 1,010 3,998

Mission 36,426 389,689 1,915 41 947 1,148 4,051

Port Coquitlam 56,342 561,855 2,132 32 1,177 915 4,256

West Kelowna 30,892 480,345 2,303 184 1,146 905 4,538

North Vancouver 48,196 962,308 2,419 56 1,748 982 5,205

New Westminster 65,976 708,280 2,634 43 1,570 1,247 5,494

Port Moody 32,975 808,631 2,804 48 1,695 988 5,535

White Rock 19,339 948,207 3,287 56 2,005 498 5,846

Average 43,419 $ 500,707 $ 2,061 $ 118 $ 1,184 $ 865 $ 4,228

Source: MCSCD Local Gov't Infrastructure and Finance - 2015 data *Source: BC Statistics

Municipal Comparison 2015

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2015 Municipal Comparison of Taxes and User Fees on a Representative House

MunicipalFeesHospital & Other

RegionalDistrictMunicipalTax

137

2011 2012 2013 2014 2015Annual Estimated Population (Source: BC Statistics) 38,914 38,573 38,672 39,167 40,497

Population Growth Rates 0.1% -0.9% 0.3% 1.3% 3.4%

Annual Estimated Eligible Voters (based on population estimate) 30,989 31,341 31,693 32,045 32,397

Selected Statistics:

Taxable Area (hectares) 7,531

Total Area (hectares) 11,602

Paved Roads (kilometers) 315

Number of Fire Hydrants 1,241

Storm Sewer Pipes (kilometeres) 196

Sanitary Sewer Pipes (kilometers) 279

Residential Sewer Connections 9,368

Residential Sewer Billing Units 16,787

Commercial & Other Sewer Connections 1,035

Commercial & Other Sewer Billing Units 1,021

Sewer System Average Daily Flow 12,086 (cubic metres/day)

2011 and 2006 Census (Source: Statistics Canada)Total 0 - 14 15 - 24 25 - 44 45 - 64 65+

2011 38,155 5,370 4,430 8,505 11,050 8,800

2006 35,944 5,610 4,355 8,290 9,795 7,894

Total Net Growth 2,211 (240) 75 215 1,255 906

Percent Growth 6.2% -4.3% 1.7% 2.6% 12.8% 11.5%

Population Demographics 2015

20,000

25,000

30,000

35,000

40,000

45,000

2011 2012 2013 2014 2015

Annual Estimated Population & Eligible Voters

Population Eligible Voters

138

CITY H ALL | 3400 30 STREET | VERNON BC, V1T 5E6 | TEL 250 545 1361 | FAX 250 545 7876 | www.vernon.ca

2015 Annual Report The Corporation of the City of Vernon, British Columbia

139

· 6 . Vernon City Council and Senior Management Contacts Canadian Award for Financial Reporting Our Mission Statement 6 . INTRODUCTORY SECTION . Message from the Mayor 7 . Message

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