1 00:00:21,000 --> 00:00:23,950 That was 2 00:00:23,960 --> 00:00:59,190 I'll keep it. 3 00:00:59,200 --> 00:01:00,960 8:00. 4 00:01:00,960 --> 00:01:03,880 So, I to order this special council 5 00:01:03,880 --> 00:01:07,200 meeting of Thursday, May 17th. 6 00:01:07,200 --> 00:01:09,760 And we will start with the adoption of 7 00:01:09,760 --> 00:01:11,080 our agenda. I don't know if there's 8 00:01:11,080 --> 00:01:12,840 don't think there's any 9 00:01:12,840 --> 00:01:14,680 changes from the agenda. 10 00:01:14,680 --> 00:01:16,320 Nope, not seeing anything from staff. 11 00:01:16,320 --> 00:01:16,960 Councillor Wyatt. 12 00:01:16,960 --> 00:01:19,390 >> I'll move the agenda. 13 00:01:19,390 --> 00:01:19,400 » I'll move the agenda. 14 00:01:19,400 --> 00:01:21,350 >> Seconded by Councillor Southcott. Not 15 00:01:21,350 --> 00:01:21,360 » Seconded by Councillor Southcott. Not 16 00:01:21,360 --> 00:01:24,080 seeing any discussion, all in favor? 17 00:01:24,080 --> 00:01:27,200 That is unanimous. 18 00:01:27,200 --> 00:01:29,840 And I can get someone to do number three 19 00:01:29,840 --> 00:01:32,400 minutes. 20 00:01:32,400 --> 00:01:33,710 >> I move 21 00:01:33,710 --> 00:01:33,720 » I move 22 00:01:33,720 --> 00:01:36,000 I move that council move into a closed 23 00:01:36,000 --> 00:01:37,680 meeting to discuss matters covered by 24 00:01:37,680 --> 00:01:40,120 the community charter under Section 90 25 00:01:40,120 --> 00:01:42,440 1A, personal information about an 26 00:01:42,440 --> 00:01:44,800 identifiable individual who holds or is 27 00:01:44,800 --> 00:01:46,600 being considered for a position as an 28 00:01:46,600 --> 00:01:48,920 officer, employee, or agent of the 29 00:01:48,920 --> 00:01:50,840 municipality or another position 30 00:01:50,840 --> 00:01:53,440 appointed by the municipality. 31 00:01:53,440 --> 00:01:54,560 Um 32 00:01:54,560 --> 00:01:59,750 Is that I or L? 33 00:01:59,760 --> 00:02:00,720 L. 34 00:02:00,720 --> 00:02:03,120 Discussions with municipal officers and 35 00:02:03,120 --> 00:02:04,760 employees respecting municipal 36 00:02:04,760 --> 00:02:06,600 objectives, measures, and progress 37 00:02:06,600 --> 00:02:09,080 reports for the purposes of preparing an 38 00:02:09,080 --> 00:02:11,840 annual report under section 98, annual 39 00:02:11,840 --> 00:02:14,320 municipal report. 40 00:02:14,320 --> 00:02:16,070 >> Moved by Councillor Southcott. 41 00:02:16,070 --> 00:02:16,080 » Moved by Councillor Southcott. 42 00:02:16,080 --> 00:02:17,920 All in favor. 43 00:02:17,920 --> 00:02:20,280 That is unanimous. We 44 00:02:20,280 --> 00:02:22,160 reconvene at 3:30 for the rest of the 45 00:02:22,160 --> 00:05:49,750 open agenda. 46 00:05:49,760 --> 00:30:49,150 » Mhm. 47 00:30:49,160 --> 00:30:51,520 » Good to go, Carson? 48 00:30:51,520 --> 00:30:52,920 Yep. 49 00:30:52,920 --> 00:30:55,920 All right, we will resume our special 50 00:30:55,920 --> 00:30:58,200 council meeting for Monday, sorry 51 00:30:58,200 --> 00:31:01,000 Monday, Thursday May the 14th. 52 00:31:01,000 --> 00:31:03,600 Uh the mayor is away with leave today. 53 00:31:03,600 --> 00:31:05,240 Councillor Isaacson is tuning in 54 00:31:05,240 --> 00:31:07,120 remotely. I'd like to acknowledge that 55 00:31:07,120 --> 00:31:08,560 we're holding these meetings on the 56 00:31:08,560 --> 00:31:10,000 traditional territory of the Tla'amin 57 00:31:10,000 --> 00:31:11,080 people. 58 00:31:11,080 --> 00:31:12,240 Who have stewarded this land for 59 00:31:12,240 --> 00:31:14,280 thousands of years. 60 00:31:14,280 --> 00:31:16,840 And we already had our agenda cleared 61 00:31:16,840 --> 00:31:19,040 up, so that moves us to our public input 62 00:31:19,040 --> 00:31:20,200 period. 63 00:31:20,200 --> 00:31:22,600 Um there's nobody in the gallery. Mr. 64 00:31:22,600 --> 00:31:24,360 Sercia, do we have anyone online for 65 00:31:24,360 --> 00:31:26,080 public input? 66 00:31:26,080 --> 00:31:27,520 All right, wonderful. 67 00:31:27,520 --> 00:31:31,120 That moves us to 7.1, the draft 2025 68 00:31:31,120 --> 00:31:32,840 financial statements and related 69 00:31:32,840 --> 00:31:35,320 results. We'll turn it over to the 70 00:31:35,320 --> 00:31:37,320 uh interim chief financial officer, Mr. 71 00:31:37,320 --> 00:31:39,280 Beauregard. 72 00:31:39,280 --> 00:31:42,710 >> Thank you, uh Acting Mayor. Um 73 00:31:42,710 --> 00:31:42,720 » Thank you, uh Acting Mayor. Um 74 00:31:42,720 --> 00:31:45,320 in terms of sequence, uh 75 00:31:45,320 --> 00:31:47,080 our auditor, Brian Zabor, is going to 76 00:31:47,080 --> 00:31:50,920 present us audit finding report first. 77 00:31:50,920 --> 00:31:52,400 And then, [snorts] um 78 00:31:52,400 --> 00:31:54,880 Ryan will give a brief uh PowerPoint 79 00:31:54,880 --> 00:31:56,960 presentation on the statements and the 80 00:31:56,960 --> 00:31:59,160 highlights of those statements. 81 00:31:59,160 --> 00:32:01,240 And then, we'll ask uh 82 00:32:01,240 --> 00:32:03,560 entertain questions and then ask council 83 00:32:03,560 --> 00:32:05,440 to consider the motion to approve the 84 00:32:05,440 --> 00:32:07,760 draft financial statements. So, I'll 85 00:32:07,760 --> 00:32:10,800 turn things over to Brian first. 86 00:32:10,800 --> 00:32:12,670 >> Uh thank you very much. I appreciate the 87 00:32:12,670 --> 00:32:12,680 » Uh thank you very much. I appreciate the 88 00:32:12,680 --> 00:32:15,120 opportunity to be here, 89 00:32:15,120 --> 00:32:17,120 kind of here, with you today, uh 90 00:32:17,120 --> 00:32:19,200 presenting the financial or the audit 91 00:32:19,200 --> 00:32:22,120 report on the financial statements. 92 00:32:22,120 --> 00:32:25,360 Um so, if you are following along in in 93 00:32:25,360 --> 00:32:27,240 your package, uh and if there's a 94 00:32:27,240 --> 00:32:29,200 presentation up on the uh the board, 95 00:32:29,200 --> 00:32:31,640 it's uh I'm starting on page four of our 96 00:32:31,640 --> 00:32:33,640 report. 97 00:32:33,640 --> 00:32:36,560 And uh on page four, it's uh starts with 98 00:32:36,560 --> 00:32:39,080 uh at a glance and it describes 99 00:32:39,080 --> 00:32:41,440 uh the materiality levels that were 100 00:32:41,440 --> 00:32:44,120 applied uh to the city's audit. 101 00:32:44,120 --> 00:32:46,680 Um the overall materiality level that's 102 00:32:46,680 --> 00:32:49,880 applied to capital activities remained 103 00:32:49,880 --> 00:32:52,760 at 4.3 million. The uh consolidated 104 00:32:52,760 --> 00:32:54,840 materiality with respect to operating 105 00:32:54,840 --> 00:32:58,400 activities remained at 1.3 million. And 106 00:32:58,400 --> 00:33:00,880 then the specific component materiality 107 00:33:00,880 --> 00:33:03,640 that applies to the individual entities 108 00:33:03,640 --> 00:33:06,120 um the city as an individual entity, the 109 00:33:06,120 --> 00:33:08,640 Powell River Forest Limited, and the 110 00:33:08,640 --> 00:33:11,720 Powell River Public Library was 1.251 111 00:33:11,720 --> 00:33:14,840 million. Now, those specific materiality 112 00:33:14,840 --> 00:33:17,240 levels that were applied to those audits 113 00:33:17,240 --> 00:33:19,600 specifically may and well and and may 114 00:33:19,600 --> 00:33:21,040 well have been and in fact for the 115 00:33:21,040 --> 00:33:23,560 library was definitely lower than that, 116 00:33:23,560 --> 00:33:25,960 but we set that as kind of the highest 117 00:33:25,960 --> 00:33:28,400 um amount that can be set for 118 00:33:28,400 --> 00:33:30,280 materiality level at the component 119 00:33:30,280 --> 00:33:32,560 level. 120 00:33:32,560 --> 00:33:35,040 Um for on page five, we provide a 121 00:33:35,040 --> 00:33:37,960 snapshot of the status of the audit. Uh 122 00:33:37,960 --> 00:33:40,040 the audit was uh complete uh the 123 00:33:40,040 --> 00:33:41,360 fieldwork was completed a couple of 124 00:33:41,360 --> 00:33:43,800 weeks ago. We finished off getting some 125 00:33:43,800 --> 00:33:45,520 questions answered and going through 126 00:33:45,520 --> 00:33:48,320 some uh some final matters with uh 127 00:33:48,320 --> 00:33:51,520 management, but we are complete now and 128 00:33:51,520 --> 00:33:53,720 uh subject to approval of the financial 129 00:33:53,720 --> 00:33:56,400 statements by council, we will be ready 130 00:33:56,400 --> 00:33:58,240 to issue the auditor's report. We have 131 00:33:58,240 --> 00:34:00,080 received the signed management 132 00:34:00,080 --> 00:34:03,000 representation letter and we did perform 133 00:34:03,000 --> 00:34:05,680 our subsequent events questions up to 134 00:34:05,680 --> 00:34:07,960 today's date, so we are ready to issue 135 00:34:07,960 --> 00:34:09,879 upon council's approval of the financial 136 00:34:09,879 --> 00:34:12,399 statements. 137 00:34:12,399 --> 00:34:14,879 Uh on page six 138 00:34:14,879 --> 00:34:16,800 we describe uh what we call group 139 00:34:16,800 --> 00:34:18,679 matters because uh there are two 140 00:34:18,679 --> 00:34:21,280 entities that are consolidated into the 141 00:34:21,280 --> 00:34:23,040 financial statements being the forestry 142 00:34:23,040 --> 00:34:24,159 company 143 00:34:24,159 --> 00:34:26,679 and uh the library. We do consider this 144 00:34:26,679 --> 00:34:29,280 to be a group audit. Um we do audit the 145 00:34:29,280 --> 00:34:31,760 library as well, so that part of it is 146 00:34:31,760 --> 00:34:33,360 uh fairly straightforward. But, because 147 00:34:33,360 --> 00:34:36,000 there's another firm of auditors that 148 00:34:36,000 --> 00:34:38,399 audits the Powell River Community Forest 149 00:34:38,399 --> 00:34:39,639 Company, 150 00:34:39,639 --> 00:34:41,440 we do have to communicate with them and 151 00:34:41,440 --> 00:34:43,280 ensure that their procedures are being 152 00:34:43,280 --> 00:34:45,760 undertaken as though we are doing the 153 00:34:45,760 --> 00:34:48,000 audit. So, we really oversee their audit 154 00:34:48,000 --> 00:34:50,600 work. And we are in communication with 155 00:34:50,600 --> 00:34:52,360 them. We do confirm with them that they 156 00:34:52,360 --> 00:34:54,560 are adhering to the same standards that 157 00:34:54,560 --> 00:34:56,840 we do. And then we do use their audit 158 00:34:56,840 --> 00:35:00,520 opinion in in the incorporation of of 159 00:35:00,520 --> 00:35:03,240 the results of operations of the 160 00:35:03,240 --> 00:35:05,600 forestry company into the cities. 161 00:35:05,600 --> 00:35:08,080 And so, based on the above, 162 00:35:08,080 --> 00:35:10,320 an unmodified audit opinion was issued 163 00:35:10,320 --> 00:35:14,680 by MNP. And we do use that as audit 164 00:35:14,680 --> 00:35:16,880 evidence for the cities' financial 165 00:35:16,880 --> 00:35:20,590 statements. 166 00:35:20,600 --> 00:35:24,360 The next several pages, 7, 8, and 9 167 00:35:24,360 --> 00:35:26,560 cover our audit findings. And this 168 00:35:26,560 --> 00:35:28,880 should be read in conjunction 169 00:35:28,880 --> 00:35:29,960 with 170 00:35:29,960 --> 00:35:32,560 the planning report that was presented 171 00:35:32,560 --> 00:35:34,280 in January. 172 00:35:34,280 --> 00:35:36,240 The first page covers management 173 00:35:36,240 --> 00:35:39,040 override of internal controls. We do 174 00:35:39,040 --> 00:35:41,800 perform procedures to address that risk 175 00:35:41,800 --> 00:35:44,760 and did not note any instances of 176 00:35:44,760 --> 00:35:47,360 override of internal controls, including 177 00:35:47,360 --> 00:35:49,200 in journal entries, 178 00:35:49,200 --> 00:35:51,920 risk of fraudulent revenue recognition. 179 00:35:51,920 --> 00:35:54,240 We have rebutted that risk just due to 180 00:35:54,240 --> 00:35:56,880 the nature of the revenue streams at the 181 00:35:56,880 --> 00:35:59,600 city. However, there is still a 182 00:35:59,600 --> 00:36:01,760 complexity to the revenue recognition at 183 00:36:01,760 --> 00:36:03,560 the city. So, we do 184 00:36:03,560 --> 00:36:06,640 confirm grant funding and we do ensure 185 00:36:06,640 --> 00:36:09,640 that any funding received and other 186 00:36:09,640 --> 00:36:11,480 transactions that are recorded for 187 00:36:11,480 --> 00:36:13,400 revenue are recorded properly in 188 00:36:13,400 --> 00:36:16,480 accordance with the standards. 189 00:36:16,480 --> 00:36:20,160 Page 8 covers employee future benefits 190 00:36:20,160 --> 00:36:22,280 and development cost charges. Again, two 191 00:36:22,280 --> 00:36:25,600 areas that that entail some complexity. 192 00:36:25,600 --> 00:36:27,200 And so, we do spend a fair amount of 193 00:36:27,200 --> 00:36:28,280 time 194 00:36:28,280 --> 00:36:30,200 examining these areas and all the 195 00:36:30,200 --> 00:36:32,040 procedures that were performed were done 196 00:36:32,040 --> 00:36:36,160 so without any issues noted. 197 00:36:36,160 --> 00:36:38,760 And then finally on page nine we address 198 00:36:38,760 --> 00:36:41,040 the contingent liability with respect to 199 00:36:41,040 --> 00:36:43,560 the wastewater treatment plant. This is 200 00:36:43,560 --> 00:36:45,480 an item that carries over from the prior 201 00:36:45,480 --> 00:36:48,320 year and the litigation is ongoing 202 00:36:48,320 --> 00:36:51,000 remains unresolved. At this time there 203 00:36:51,000 --> 00:36:52,880 have been no amounts recorded in the 204 00:36:52,880 --> 00:36:55,040 financial statements in respect of this 205 00:36:55,040 --> 00:36:56,200 item 206 00:36:56,200 --> 00:36:59,560 simply because the ability to predict 207 00:36:59,560 --> 00:37:02,360 the outcome is not there and any amounts 208 00:37:02,360 --> 00:37:05,160 if any that might be payable in respect 209 00:37:05,160 --> 00:37:07,360 of this cannot be estimated at this 210 00:37:07,360 --> 00:37:08,480 time. 211 00:37:08,480 --> 00:37:11,480 And at the time that this becomes more 212 00:37:11,480 --> 00:37:13,640 clear in terms of its resolution and the 213 00:37:13,640 --> 00:37:16,080 amount payable if any 214 00:37:16,080 --> 00:37:17,800 it will be recorded in the financial 215 00:37:17,800 --> 00:37:21,190 statements. 216 00:37:21,200 --> 00:37:23,880 The next page 10 covers internal control 217 00:37:23,880 --> 00:37:25,640 matters. We did not note any 218 00:37:25,640 --> 00:37:28,520 deficiencies in internal controls. 219 00:37:28,520 --> 00:37:31,200 If we did we would be required to 220 00:37:31,200 --> 00:37:33,400 communicate those to you 221 00:37:33,400 --> 00:37:34,440 but the fact that we are not 222 00:37:34,440 --> 00:37:36,360 communicating any significant 223 00:37:36,360 --> 00:37:38,080 deficiencies doesn't mean there are no 224 00:37:38,080 --> 00:37:40,720 deficiencies. We do not test all 225 00:37:40,720 --> 00:37:43,240 internal controls nor all instances of 226 00:37:43,240 --> 00:37:44,920 internal controls. 227 00:37:44,920 --> 00:37:47,720 We test the the controls that we deem 228 00:37:47,720 --> 00:37:49,600 relevant to the audit so those are the 229 00:37:49,600 --> 00:37:52,040 significant controls that management 230 00:37:52,040 --> 00:37:56,910 performs that impact our audit work. 231 00:37:56,920 --> 00:38:00,000 The next page 11 adjusted and unadjusted 232 00:38:00,000 --> 00:38:02,280 differences. There were no adjustments 233 00:38:02,280 --> 00:38:04,480 made during the course of the audit as a 234 00:38:04,480 --> 00:38:06,720 result of the audit procedures and there 235 00:38:06,720 --> 00:38:08,160 are no 236 00:38:08,160 --> 00:38:10,080 misstatements that we detected that 237 00:38:10,080 --> 00:38:12,240 remain uncorrected in the financial 238 00:38:12,240 --> 00:38:15,110 statements. 239 00:38:15,120 --> 00:38:18,160 The next two pages 12 and 13 cover a 240 00:38:18,160 --> 00:38:20,840 number of matters that if they were to 241 00:38:20,840 --> 00:38:23,440 occur or noted by us, we would be 242 00:38:23,440 --> 00:38:25,520 required to report them to you. The 243 00:38:25,520 --> 00:38:27,720 first three items are responsibilities 244 00:38:27,720 --> 00:38:29,880 under auditing standards, our audit 245 00:38:29,880 --> 00:38:32,400 strategy and scope, and fraud risk 246 00:38:32,400 --> 00:38:35,040 factors applicable to the city were 247 00:38:35,040 --> 00:38:37,920 included in our planning report. And uh 248 00:38:37,920 --> 00:38:39,880 there were no other matters that were 249 00:38:39,880 --> 00:38:41,640 required to be reported to you other 250 00:38:41,640 --> 00:38:44,560 than the fact that we do use uh Georgian 251 00:38:44,560 --> 00:38:47,080 Bell, the uh firm of actuaries in 252 00:38:47,080 --> 00:38:50,400 determining the uh amount of the 253 00:38:50,400 --> 00:38:52,360 employee future benefits, and of course 254 00:38:52,360 --> 00:38:55,240 our reliance on MNP's report on the 255 00:38:55,240 --> 00:38:57,960 forestry company. 256 00:38:57,960 --> 00:38:59,960 Um the next page outlines a number of 257 00:38:59,960 --> 00:39:02,720 recommended resources for you. The red 258 00:39:02,720 --> 00:39:06,600 boxes are all links to our website and 259 00:39:06,600 --> 00:39:08,960 uh include a num- a bunch of uh really 260 00:39:08,960 --> 00:39:10,560 very interesting information, and the 261 00:39:10,560 --> 00:39:13,240 one on the right there is probably 262 00:39:13,240 --> 00:39:15,640 something that uh I think uh management 263 00:39:15,640 --> 00:39:18,000 and uh council might want to to uh 264 00:39:18,000 --> 00:39:20,760 explore is uh the prevention of 265 00:39:20,760 --> 00:39:22,880 procurement fraud risks. 266 00:39:22,880 --> 00:39:25,200 Um this is something that we we do see 267 00:39:25,200 --> 00:39:27,480 now and then on the increase, and and 268 00:39:27,480 --> 00:39:29,720 just with uh today's kind of economic 269 00:39:29,720 --> 00:39:32,440 environment, um probably warrants 270 00:39:32,440 --> 00:39:34,480 another look just to ensure that uh all 271 00:39:34,480 --> 00:39:37,720 your controls are in place. 272 00:39:37,720 --> 00:39:40,640 Uh the next page covers a a new 273 00:39:40,640 --> 00:39:42,400 accounting standard that will be 274 00:39:42,400 --> 00:39:45,960 effective for your fiscal 2027 year. 275 00:39:45,960 --> 00:39:48,520 Uh it's really a a revision to the 276 00:39:48,520 --> 00:39:50,000 presentation of the financial 277 00:39:50,000 --> 00:39:52,240 statements, particularly the statement 278 00:39:52,240 --> 00:39:54,720 of financial position. Um for those of 279 00:39:54,720 --> 00:39:57,200 you who are are used to private company 280 00:39:57,200 --> 00:39:59,520 financial statements that usually have a 281 00:39:59,520 --> 00:40:02,720 balance sheet rather than the uh city's 282 00:40:02,720 --> 00:40:05,200 uh statement of financial position, uh 283 00:40:05,200 --> 00:40:07,200 this will be more familiar to you. It is 284 00:40:07,200 --> 00:40:09,320 going back more to a a balance sheet 285 00:40:09,320 --> 00:40:12,760 format, and uh introduces the concept of 286 00:40:12,760 --> 00:40:14,720 financial liabilities as well. So, there 287 00:40:14,720 --> 00:40:16,440 will be some changes, and and there will 288 00:40:16,440 --> 00:40:18,400 be a fair bit of work 289 00:40:18,400 --> 00:40:21,000 involved in in getting to that place and 290 00:40:21,000 --> 00:40:22,800 we'll be communicating with management 291 00:40:22,800 --> 00:40:25,320 over the course of the next year and a 292 00:40:25,320 --> 00:40:28,200 half or so to to ensure that 293 00:40:28,200 --> 00:40:30,320 they're on track and and if they have 294 00:40:30,320 --> 00:40:33,120 any questions on application we're happy 295 00:40:33,120 --> 00:40:37,080 to to help with those. 296 00:40:37,080 --> 00:40:39,560 And then finally in the appendices the 297 00:40:39,560 --> 00:40:41,600 representation letter I mentioned that 298 00:40:41,600 --> 00:40:43,160 we have received this already signed 299 00:40:43,160 --> 00:40:45,680 from management. We are required to 300 00:40:45,680 --> 00:40:48,080 obtain this in writing a number of 301 00:40:48,080 --> 00:40:50,120 matters that we ask about during the 302 00:40:50,120 --> 00:40:52,880 course of our audit and just telling us 303 00:40:52,880 --> 00:40:55,160 that they've provided us with all the 304 00:40:55,160 --> 00:40:57,040 material that we've asked for anything 305 00:40:57,040 --> 00:40:59,760 relevant to the financial statements and 306 00:40:59,760 --> 00:41:01,640 to the city's operation that they're not 307 00:41:01,640 --> 00:41:04,360 aware of any additional fraud risk 308 00:41:04,360 --> 00:41:07,200 factors or specific fraud 309 00:41:07,200 --> 00:41:09,440 and just a number of other general 310 00:41:09,440 --> 00:41:10,960 representations 311 00:41:10,960 --> 00:41:14,000 that that we request and there's nothing 312 00:41:14,000 --> 00:41:15,880 in in particular in this year's letter 313 00:41:15,880 --> 00:41:18,400 that is a standout that would not be 314 00:41:18,400 --> 00:41:21,240 included in other years letters or other 315 00:41:21,240 --> 00:41:23,200 local government letters so it's all 316 00:41:23,200 --> 00:41:25,520 it's all fairly standard. 317 00:41:25,520 --> 00:41:27,760 And then finally our independence letter 318 00:41:27,760 --> 00:41:31,160 which provides you with confirmation 319 00:41:31,160 --> 00:41:34,360 that we are independent from the city 320 00:41:34,360 --> 00:41:35,880 there is 321 00:41:35,880 --> 00:41:38,760 five criteria there that that we note in 322 00:41:38,760 --> 00:41:41,040 terms of what we look to to ensure that 323 00:41:41,040 --> 00:41:42,120 we are 324 00:41:42,120 --> 00:41:43,760 with the last bullet point really being 325 00:41:43,760 --> 00:41:46,080 the the one that's most 326 00:41:46,080 --> 00:41:48,560 common in in the public sector 327 00:41:48,560 --> 00:41:51,080 the provision of services that are 328 00:41:51,080 --> 00:41:53,080 incompatible with with our role as 329 00:41:53,080 --> 00:41:55,040 auditors that might put us into a 330 00:41:55,040 --> 00:41:57,920 position of auditing our own work or if 331 00:41:57,920 --> 00:41:59,520 there's 332 00:41:59,520 --> 00:42:01,680 things that we are doing services that 333 00:42:01,680 --> 00:42:04,200 we are providing that that might be 334 00:42:04,200 --> 00:42:06,440 multiples of our our audit fee and I can 335 00:42:06,440 --> 00:42:09,040 assure you that there's no such 336 00:42:09,040 --> 00:42:11,840 activities like that. So we do confirm 337 00:42:11,840 --> 00:42:14,080 that that we are independent from the 338 00:42:14,080 --> 00:42:15,440 city. 339 00:42:15,440 --> 00:42:17,040 So, I'm happy to respond to any 340 00:42:17,040 --> 00:42:20,670 questions. 341 00:42:20,680 --> 00:42:25,390 » Questions, Council? 342 00:42:25,400 --> 00:42:28,080 Wow, you have Oh, I thought you were 343 00:42:28,080 --> 00:42:29,880 going to set a record, Mr. Zabel. 344 00:42:29,880 --> 00:42:32,440 Counselor Dought. 345 00:42:32,440 --> 00:42:34,470 >> I don't want to be accused of coming to 346 00:42:34,470 --> 00:42:34,480 » I don't want to be accused of coming to 347 00:42:34,480 --> 00:42:37,149 a 3-minute meeting, so 348 00:42:37,149 --> 00:42:37,710 >> [laughter] 349 00:42:37,710 --> 00:42:37,720 » [laughter] 350 00:42:37,720 --> 00:42:39,270 >> going to maybe stretch it out a little 351 00:42:39,270 --> 00:42:39,280 » going to maybe stretch it out a little 352 00:42:39,280 --> 00:42:41,640 bit here. But, I just you know, I got an 353 00:42:41,640 --> 00:42:44,520 email this week from a from a taxpayer 354 00:42:44,520 --> 00:42:46,840 who was telling me that the city is 355 00:42:46,840 --> 00:42:49,560 bankrupt. And since the auditors are 356 00:42:49,560 --> 00:42:51,480 here, I thought that might be a good 357 00:42:51,480 --> 00:42:53,880 question to ask the auditors. Do you 358 00:42:53,880 --> 00:42:55,880 think we're the city's anywhere close to 359 00:42:55,880 --> 00:42:58,240 being bankrupt? 360 00:42:58,240 --> 00:43:00,310 >> Well, I I think that's probably a 361 00:43:00,310 --> 00:43:00,320 » Well, I I think that's probably a 362 00:43:00,320 --> 00:43:02,320 question that should be answered during 363 00:43:02,320 --> 00:43:04,080 the presentation of the financial 364 00:43:04,080 --> 00:43:06,920 statements. I'm not I'm not sure what 365 00:43:06,920 --> 00:43:08,520 you know, bankrupt can mean a lot of 366 00:43:08,520 --> 00:43:11,640 different things. Um I don't certainly 367 00:43:11,640 --> 00:43:14,320 don't see the city as as being 368 00:43:14,320 --> 00:43:15,880 bankrupt, 369 00:43:15,880 --> 00:43:17,640 but I think what you'll you'll find is 370 00:43:17,640 --> 00:43:19,200 when the financial statements are 371 00:43:19,200 --> 00:43:22,480 presented that the city has adequate 372 00:43:22,480 --> 00:43:26,800 resources to continue operations. 373 00:43:26,800 --> 00:43:28,350 >> Thank you. I thought that was what you 374 00:43:28,350 --> 00:43:28,360 » Thank you. I thought that was what you 375 00:43:28,360 --> 00:43:31,150 would say. 376 00:43:31,160 --> 00:43:32,400 » Thank you, Counselor Dought. Anyone 377 00:43:32,400 --> 00:43:34,720 else? 378 00:43:34,720 --> 00:43:36,440 Seeing none, thank you, Mr. Zabel for 379 00:43:36,440 --> 00:43:38,080 your presentation. 380 00:43:38,080 --> 00:43:40,510 >> Thank you. I will just I'll hang on the 381 00:43:40,510 --> 00:43:40,520 » Thank you. I will just I'll hang on the 382 00:43:40,520 --> 00:43:43,200 meeting until Council has an opportunity 383 00:43:43,200 --> 00:43:45,120 to approve the statements. 384 00:43:45,120 --> 00:43:46,190 >> Sounds good. 385 00:43:46,190 --> 00:43:46,200 » Sounds good. 386 00:43:46,200 --> 00:43:46,630 >> Thank you. 387 00:43:46,630 --> 00:43:46,640 » Thank you. 388 00:43:46,640 --> 00:43:51,750 >> Um Mr. Youngman, I believe you're next. 389 00:43:51,760 --> 00:43:53,120 » Thank you. 390 00:43:53,120 --> 00:43:54,600 I always have to adjust this microphone 391 00:43:54,600 --> 00:43:56,840 here. 392 00:43:56,840 --> 00:43:58,760 So, the purpose of this report is to 393 00:43:58,760 --> 00:44:00,880 summarize the city's financial results 394 00:44:00,880 --> 00:44:03,320 and to present the draft 2025 financial 395 00:44:03,320 --> 00:44:05,440 statements for Council's approval, which 396 00:44:05,440 --> 00:44:07,800 is required for the auditors to sign off 397 00:44:07,800 --> 00:44:09,505 on the audit. 398 00:44:09,505 --> 00:44:10,270 >> [clears throat] 399 00:44:10,270 --> 00:44:10,280 » [clears throat] 400 00:44:10,280 --> 00:44:11,670 >> So, the report goes into quite a bit of 401 00:44:11,670 --> 00:44:11,680 » So, the report goes into quite a bit of 402 00:44:11,680 --> 00:44:12,960 detail, so I'm just going to focus on 403 00:44:12,960 --> 00:44:14,360 the key points, but if there's any 404 00:44:14,360 --> 00:44:16,160 questions on the presentation, the 405 00:44:16,160 --> 00:44:17,600 report, or any part of the financial 406 00:44:17,600 --> 00:44:18,920 statements, I'll be happy to answer them 407 00:44:18,920 --> 00:44:21,400 at the end of the presentation. 408 00:44:21,400 --> 00:44:22,640 So, starting with some background 409 00:44:22,640 --> 00:44:24,320 information, the financial statements 410 00:44:24,320 --> 00:44:26,160 and the audit are being big undertaking 411 00:44:26,160 --> 00:44:27,680 by staff, um 412 00:44:27,680 --> 00:44:29,040 but uh ultimately the financial 413 00:44:29,040 --> 00:44:30,920 statements are prepared by management in 414 00:44:30,920 --> 00:44:32,440 accordance with public sector accounting 415 00:44:32,440 --> 00:44:33,640 standards. 416 00:44:33,640 --> 00:44:35,400 As we've heard from the city's external 417 00:44:35,400 --> 00:44:37,480 auditor, BDO, the auditors have 418 00:44:37,480 --> 00:44:39,680 substantially completed their audit and 419 00:44:39,680 --> 00:44:41,160 have scrutinized the city's accounts, 420 00:44:41,160 --> 00:44:43,640 processes, and financial statements and 421 00:44:43,640 --> 00:44:45,560 have a draft clean audit opinion, which 422 00:44:45,560 --> 00:44:47,520 is called an unmodified opinion, so 423 00:44:47,520 --> 00:44:50,116 we're pleased about that. 424 00:44:50,116 --> 00:44:51,310 >> [clears throat and cough] 425 00:44:51,310 --> 00:44:51,320 » [clears throat and cough] 426 00:44:51,320 --> 00:44:53,230 >> So, the first statement that I'd like to 427 00:44:53,230 --> 00:44:53,240 » So, the first statement that I'd like to 428 00:44:53,240 --> 00:44:54,280 bring to your attention is the 429 00:44:54,280 --> 00:44:55,920 consolidated statement of financial 430 00:44:55,920 --> 00:44:58,440 position, which provides a snapshot of 431 00:44:58,440 --> 00:45:01,240 the city's finances at a point in time. 432 00:45:01,240 --> 00:45:03,360 So, we're looking at December 31st of 433 00:45:03,360 --> 00:45:06,840 2025 compared to the previous year. 434 00:45:06,840 --> 00:45:08,240 So, the first line item I'd like to 435 00:45:08,240 --> 00:45:10,080 bring to your attention is cash and cash 436 00:45:10,080 --> 00:45:12,640 equivalents, which increased by 5.2 437 00:45:12,640 --> 00:45:15,560 million to 69.1 million, primarily due 438 00:45:15,560 --> 00:45:17,400 to the 2024 dividend from the Powell 439 00:45:17,400 --> 00:45:19,600 River Community Forest of 3.7 million 440 00:45:19,600 --> 00:45:22,280 that was deposited during the year. 441 00:45:22,280 --> 00:45:23,720 Dividends receivable from the Powell 442 00:45:23,720 --> 00:45:25,120 River Community Forest fluctuate 443 00:45:25,120 --> 00:45:26,240 depending on the activity in the 444 00:45:26,240 --> 00:45:29,040 corporation, and the dividend receivable 445 00:45:29,040 --> 00:45:32,040 increased decreased by 2 million to 1.7 446 00:45:32,040 --> 00:45:33,720 million, which is larger than the 447 00:45:33,720 --> 00:45:36,800 budgeted dividend of $1 million. 448 00:45:36,800 --> 00:45:38,480 The investment in Powell River Community 449 00:45:38,480 --> 00:45:40,080 Forest, which is the equity the city 450 00:45:40,080 --> 00:45:42,080 owns of the entity, increased by $2 451 00:45:42,080 --> 00:45:44,360 million to $3 million, primarily due to 452 00:45:44,360 --> 00:45:47,480 higher net income in the company. 453 00:45:47,480 --> 00:45:49,560 So, overall, the net financial assets 454 00:45:49,560 --> 00:45:53,910 came in at 23.9 million. 455 00:45:53,920 --> 00:45:56,640 Looking at the non-financial assets, um 456 00:45:56,640 --> 00:45:58,800 the tangible capital assets decreased by 457 00:45:58,800 --> 00:46:01,120 $1 million, primarily due to 458 00:46:01,120 --> 00:46:03,800 amortization, but uh is pretty 459 00:46:03,800 --> 00:46:05,840 consistent with the prior year. 460 00:46:05,840 --> 00:46:08,320 Resulting in accumulated surplus of 240 461 00:46:08,320 --> 00:46:12,230 million. 462 00:46:12,240 --> 00:46:13,480 The next statement I'd like to bring to 463 00:46:13,480 --> 00:46:14,920 your attention is the consolidated 464 00:46:14,920 --> 00:46:17,120 statement of operations. So, this 465 00:46:17,120 --> 00:46:19,080 provides a summary of the financial 466 00:46:19,080 --> 00:46:21,880 results from uh the year ended December 467 00:46:21,880 --> 00:46:24,680 31st of 2025 as compared to the prior 468 00:46:24,680 --> 00:46:26,560 year. 469 00:46:26,560 --> 00:46:28,320 So, taxation came in pretty much as 470 00:46:28,320 --> 00:46:31,240 expected at 30.2 million. The minor 471 00:46:31,240 --> 00:46:32,920 variance is due to the 472 00:46:32,920 --> 00:46:34,760 you know, to the budget is due to the 473 00:46:34,760 --> 00:46:36,480 supplementary assessment from BC 474 00:46:36,480 --> 00:46:41,710 Assessment that it that are issued. 475 00:46:41,720 --> 00:46:44,000 Government transfers was 3.3 million, 476 00:46:44,000 --> 00:46:46,520 which was 5.2 million below budget 477 00:46:46,520 --> 00:46:48,360 primarily due to actual grant revenue 478 00:46:48,360 --> 00:46:50,320 recognized being lower as there are 479 00:46:50,320 --> 00:46:51,840 projects that did not progress as 480 00:46:51,840 --> 00:46:54,240 planned for various reasons. 481 00:46:54,240 --> 00:46:55,960 Uh the most significant was the complex 482 00:46:55,960 --> 00:46:58,680 thermal ice heat plant recovery project 483 00:46:58,680 --> 00:47:00,920 that had a grant budget of 1.8 million, 484 00:47:00,920 --> 00:47:03,040 but didn't proceed during the year. 485 00:47:03,040 --> 00:47:04,600 And then also, when we look at the prior 486 00:47:04,600 --> 00:47:06,280 year, there was a large portion of grant 487 00:47:06,280 --> 00:47:08,440 funding that was recognized due to the 488 00:47:08,440 --> 00:47:11,680 airport rehabilitation project. 489 00:47:11,680 --> 00:47:13,960 So, overall revenue came in at 54.2 490 00:47:13,960 --> 00:47:15,640 million, which is lower due to the 491 00:47:15,640 --> 00:47:16,960 government transfers from the prior 492 00:47:16,960 --> 00:47:20,350 year. 493 00:47:20,360 --> 00:47:22,960 So, looking at the expenses, uh one 494 00:47:22,960 --> 00:47:25,000 thing to note is we're required on the 495 00:47:25,000 --> 00:47:27,160 financial statements to report the 496 00:47:27,160 --> 00:47:29,240 original budget that was adopted. So, 497 00:47:29,240 --> 00:47:30,680 any budget amendments that were made 498 00:47:30,680 --> 00:47:32,880 during the year are not in the budget 499 00:47:32,880 --> 00:47:35,040 column here. 500 00:47:35,040 --> 00:47:36,560 So, [clears throat] uh budget amendments 501 00:47:36,560 --> 00:47:38,240 like the CUPE collective agreement, for 502 00:47:38,240 --> 00:47:41,600 example, which was signed in 2025 is not 503 00:47:41,600 --> 00:47:43,280 in here. 504 00:47:43,280 --> 00:47:44,520 Um so, protective [clears throat] 505 00:47:44,520 --> 00:47:47,920 services increased by 1.2 million to 9.4 506 00:47:47,920 --> 00:47:49,800 million primarily due to police costs 507 00:47:49,800 --> 00:47:52,040 increasing almost 1 million as RCMP 508 00:47:52,040 --> 00:47:53,680 contract costs increased and there were 509 00:47:53,680 --> 00:47:56,080 more members year over year. 510 00:47:56,080 --> 00:47:58,400 The protective services overall was over 511 00:47:58,400 --> 00:48:00,840 budget by 429,000 512 00:48:00,840 --> 00:48:02,400 due to the fire department incurring 513 00:48:02,400 --> 00:48:04,280 overtime to cover long-term injury and 514 00:48:04,280 --> 00:48:06,320 illness for a significant portion of the 515 00:48:06,320 --> 00:48:08,200 year. 516 00:48:08,200 --> 00:48:10,360 Recreation parks and cultural services 517 00:48:10,360 --> 00:48:14,320 increased to 7.4 million and was 239,000 518 00:48:14,320 --> 00:48:16,360 over the original budget primarily due 519 00:48:16,360 --> 00:48:18,640 to higher wages driven by the new KIP 520 00:48:18,640 --> 00:48:20,040 wage agreement or the collective 521 00:48:20,040 --> 00:48:22,480 agreement. But having said that, if we 522 00:48:22,480 --> 00:48:24,800 look at the budget amendments that were 523 00:48:24,800 --> 00:48:25,480 um 524 00:48:25,480 --> 00:48:27,360 uh approved during the year, that they 525 00:48:27,360 --> 00:48:30,480 were actually under budget. 526 00:48:30,480 --> 00:48:32,640 So, there was a loss on disposal on 527 00:48:32,640 --> 00:48:34,480 disposal of tangible capital assets of 528 00:48:34,480 --> 00:48:36,400 723,000 529 00:48:36,400 --> 00:48:37,760 which was primarily related to the 530 00:48:37,760 --> 00:48:40,040 disposal of old asphalt pavement that 531 00:48:40,040 --> 00:48:42,160 was replaced during the airport paving 532 00:48:42,160 --> 00:48:43,880 project. 533 00:48:43,880 --> 00:48:47,160 And overall, the annual surplus was 4.5 534 00:48:47,160 --> 00:48:48,800 million which was lower than the prior 535 00:48:48,800 --> 00:48:51,080 year and budget primarily due to lower 536 00:48:51,080 --> 00:48:53,440 government transfers. 537 00:48:53,440 --> 00:48:55,280 Thank you. If there's any questions or 538 00:48:55,280 --> 00:48:59,150 comments, I'd be happy to answer them. 539 00:48:59,160 --> 00:49:00,640 » I just noticed you didn't highlight it 540 00:49:00,640 --> 00:49:02,240 there, but the development planning and 541 00:49:02,240 --> 00:49:05,800 building services was higher than 24 but 542 00:49:05,800 --> 00:49:07,320 a million lower than what the budget 543 00:49:07,320 --> 00:49:09,680 was. Are those just development and 544 00:49:09,680 --> 00:49:12,040 permit fees and things? 545 00:49:12,040 --> 00:49:14,470 >> Uh so, for the uh environmental and 546 00:49:14,470 --> 00:49:14,480 » Uh so, for the uh environmental and 547 00:49:14,480 --> 00:49:15,640 public health, which sorry, which one 548 00:49:15,640 --> 00:49:16,240 were you looking at there? 549 00:49:16,240 --> 00:49:17,670 >> The development planning and building 550 00:49:17,670 --> 00:49:17,680 » The development planning and building 551 00:49:17,680 --> 00:49:20,200 services right under the recs and parks. 552 00:49:20,200 --> 00:49:22,710 >> Yeah, so that's 1.9 million that it came 553 00:49:22,710 --> 00:49:22,720 » Yeah, so that's 1.9 million that it came 554 00:49:22,720 --> 00:49:24,920 in at versus uh 555 00:49:24,920 --> 00:49:27,320 2.9 million and um it's primarily 556 00:49:27,320 --> 00:49:28,720 related to 557 00:49:28,720 --> 00:49:30,240 uh lower staff levels than than 558 00:49:30,240 --> 00:49:31,760 budgeted. So, 559 00:49:31,760 --> 00:49:33,000 makes sense. 560 00:49:33,000 --> 00:49:34,440 Does that really help? 561 00:49:34,440 --> 00:49:35,350 >> So, we're talking about government 562 00:49:35,350 --> 00:49:35,360 » So, we're talking about government 563 00:49:35,360 --> 00:49:37,720 transfers and and projects we didn't 564 00:49:37,720 --> 00:49:39,480 start. So, does that mean we didn't 565 00:49:39,480 --> 00:49:41,280 receive grants we expected to receive 566 00:49:41,280 --> 00:49:43,160 and they're gone now or we will receive 567 00:49:43,160 --> 00:49:45,000 them in a different year or did I 568 00:49:45,000 --> 00:49:46,200 misunderstand you? 569 00:49:46,200 --> 00:49:47,270 >> Yeah, I know, it's a good question. So, 570 00:49:47,270 --> 00:49:47,280 » Yeah, I know, it's a good question. So, 571 00:49:47,280 --> 00:49:49,160 basically um 572 00:49:49,160 --> 00:49:52,040 how how it works is as projects proceed, 573 00:49:52,040 --> 00:49:54,080 that's when we recognize grant revenue 574 00:49:54,080 --> 00:49:57,640 cuz as we spend eligible grant money, 575 00:49:57,640 --> 00:49:58,920 that's when we recognize the grant 576 00:49:58,920 --> 00:50:00,880 revenue. So, uh it doesn't mean that 577 00:50:00,880 --> 00:50:03,480 we've um releasing grants. In some 578 00:50:03,480 --> 00:50:05,200 cases, we might have grants, but we have 579 00:50:05,200 --> 00:50:06,880 to record them as deferred revenue until 580 00:50:06,880 --> 00:50:09,640 the project starts. Uh in some cases, we 581 00:50:09,640 --> 00:50:11,000 put um 582 00:50:11,000 --> 00:50:12,280 you know, government transfers grant 583 00:50:12,280 --> 00:50:14,280 revenue or not grant revenue, but we 584 00:50:14,280 --> 00:50:17,160 budget for that grant revenue. Um and we 585 00:50:17,160 --> 00:50:18,880 haven't even actually been approved for 586 00:50:18,880 --> 00:50:20,200 the grant yet, but we're just putting in 587 00:50:20,200 --> 00:50:21,720 the budget hoping that it's going to get 588 00:50:21,720 --> 00:50:23,840 approved. So, yeah, there's it doesn't 589 00:50:23,840 --> 00:50:25,360 mean that we're losing out on grant 590 00:50:25,360 --> 00:50:26,920 opportunities. It's just projects are 591 00:50:26,920 --> 00:50:28,560 not proceeding as planned. 592 00:50:28,560 --> 00:50:31,550 >> So, we haven't turned back grants. 593 00:50:31,550 --> 00:50:31,560 » So, we haven't turned back grants. 594 00:50:31,560 --> 00:50:33,600 It's not grants that we turned back cuz 595 00:50:33,600 --> 00:50:35,160 we couldn't do the project in time or 596 00:50:35,160 --> 00:50:36,760 something. 597 00:50:36,760 --> 00:50:40,310 >> Um I mean, I can think of one situation 598 00:50:40,310 --> 00:50:40,320 » Um I mean, I can think of one situation 599 00:50:40,320 --> 00:50:42,600 where that's that's happened um where 600 00:50:42,600 --> 00:50:45,120 basically the project couldn't 601 00:50:45,120 --> 00:50:47,960 uh couldn't proceed. So, um the it just 602 00:50:47,960 --> 00:50:49,760 didn't happen and then the grant the 603 00:50:49,760 --> 00:50:51,880 grant money uh will be returned to the 604 00:50:51,880 --> 00:50:54,750 granter. Yeah. 605 00:50:54,760 --> 00:50:58,230 Mr. Shelton? 606 00:50:58,240 --> 00:51:00,160 » Just two more questions. 607 00:51:00,160 --> 00:51:03,040 I'm specifically curious about the 608 00:51:03,040 --> 00:51:04,120 Rec Complex [clears throat] 609 00:51:04,120 --> 00:51:06,400 uh thermal facilities uh grant federal 610 00:51:06,400 --> 00:51:08,520 grant. Was that the one that was 611 00:51:08,520 --> 00:51:09,800 returned 612 00:51:09,800 --> 00:51:11,440 or expired? 613 00:51:11,440 --> 00:51:12,990 >> Yeah, so my understanding with that 614 00:51:12,990 --> 00:51:13,000 » Yeah, so my understanding with that 615 00:51:13,000 --> 00:51:15,360 project is uh there are some funding 616 00:51:15,360 --> 00:51:18,760 challenges with that project and so um 617 00:51:18,760 --> 00:51:20,920 it's in the budget for 2027. So, it's 618 00:51:20,920 --> 00:51:23,040 still you know, hope to proceed, but 619 00:51:23,040 --> 00:51:25,000 it's just uh yeah, there there's been a 620 00:51:25,000 --> 00:51:26,400 bit of delay on it. So, 621 00:51:26,400 --> 00:51:27,750 >> So, that money that federal money is 622 00:51:27,750 --> 00:51:27,760 » So, that money that federal money is 623 00:51:27,760 --> 00:51:29,800 still waiting to 624 00:51:29,800 --> 00:51:31,800 be applied. Is it? 625 00:51:31,800 --> 00:51:33,670 >> Um 626 00:51:33,670 --> 00:51:33,680 » Um 627 00:51:33,680 --> 00:51:35,040 to be honest, I can't remember the exact 628 00:51:35,040 --> 00:51:36,360 status of it, but I just know yeah, it's 629 00:51:36,360 --> 00:51:38,280 in the 2027 budget and it was the 630 00:51:38,280 --> 00:51:40,960 project was going to cost more than was 631 00:51:40,960 --> 00:51:42,240 uh anticipated. 632 00:51:42,240 --> 00:51:43,270 >> Right. 633 00:51:43,270 --> 00:51:43,280 » Right. 634 00:51:43,280 --> 00:51:45,640 Okay, thank you. 635 00:51:45,640 --> 00:51:46,750 >> Mr. Palm. 636 00:51:46,750 --> 00:51:46,760 » Mr. Palm. 637 00:51:46,760 --> 00:51:48,030 >> Mr. Chair, just for further 638 00:51:48,030 --> 00:51:48,040 » Mr. Chair, just for further 639 00:51:48,040 --> 00:51:49,520 clarification, you were talking about 640 00:51:49,520 --> 00:51:52,560 the the roof replacement. 641 00:51:52,560 --> 00:51:58,070 Which fund Which funding were you to uh 642 00:51:58,080 --> 00:51:59,720 The the 643 00:51:59,720 --> 00:52:01,920 That wasn't Community Forest funds in 644 00:52:01,920 --> 00:52:03,160 old was it? 645 00:52:03,160 --> 00:52:04,190 >> No. 646 00:52:04,190 --> 00:52:04,200 » No. 647 00:52:04,200 --> 00:52:05,160 It's a 648 00:52:05,160 --> 00:52:06,400 federal grant. 649 00:52:06,400 --> 00:52:08,750 >> For the uh the heat exchanger projects, 650 00:52:08,750 --> 00:52:08,760 » For the uh the heat exchanger projects, 651 00:52:08,760 --> 00:52:10,280 I I can't remember what the funding 652 00:52:10,280 --> 00:52:12,160 source was uh for that. I'm not sure if 653 00:52:12,160 --> 00:52:15,280 uh CFO Bajergaard remembers, um but I I 654 00:52:15,280 --> 00:52:17,520 can speak to the uh the 655 00:52:17,520 --> 00:52:19,560 uh complex the pool roof. I I remember 656 00:52:19,560 --> 00:52:21,280 that one. So, that's uh 657 00:52:21,280 --> 00:52:23,200 that's partially Community Forest funded 658 00:52:23,200 --> 00:52:25,920 and uh we're waiting on that one for um 659 00:52:25,920 --> 00:52:28,360 to determine whether or not uh the grant 660 00:52:28,360 --> 00:52:29,880 application was successful for the 661 00:52:29,880 --> 00:52:31,880 Strategic Priorities Fund, which I 662 00:52:31,880 --> 00:52:34,240 believe we're uh supposed to expect in a 663 00:52:34,240 --> 00:52:36,080 couple months. 664 00:52:36,080 --> 00:52:36,910 >> Yep. 665 00:52:36,910 --> 00:52:36,920 » Yep. 666 00:52:36,920 --> 00:52:40,230 >> Councillor Isaacson. 667 00:52:40,240 --> 00:52:41,840 » Thank you, Chair. Um I'm wondering if 668 00:52:41,840 --> 00:52:43,920 you can speak to I think it's always a 669 00:52:43,920 --> 00:52:46,840 curiosity different organizations treat 670 00:52:46,840 --> 00:52:49,320 um annual surpluses. And so, when I look 671 00:52:49,320 --> 00:52:50,640 at our statement of operations, the 672 00:52:50,640 --> 00:52:54,840 annual surplus this year was um 673 00:52:54,840 --> 00:52:58,360 um over $4 million. And so, that feels 674 00:52:58,360 --> 00:53:00,440 like a lot of money that was taxed for 675 00:53:00,440 --> 00:53:03,960 that wasn't put to use. And so, can you 676 00:53:03,960 --> 00:53:07,160 speak to how how we 677 00:53:07,160 --> 00:53:10,200 um what we do with those funds and ways 678 00:53:10,200 --> 00:53:14,120 to tax to the levels that we expect to 679 00:53:14,120 --> 00:53:18,950 to spend operationally annually. 680 00:53:18,960 --> 00:53:20,160 » Yeah, through the chair. So, there 681 00:53:20,160 --> 00:53:21,800 actually will be a report coming forward 682 00:53:21,800 --> 00:53:23,880 in the near future um discussing 683 00:53:23,880 --> 00:53:26,240 surplus. So, it'll go into more detail, 684 00:53:26,240 --> 00:53:29,640 but uh yeah, surplus is used to put into 685 00:53:29,640 --> 00:53:32,520 reserves to save for the future, um and 686 00:53:32,520 --> 00:53:34,800 it's also used to you know, fund 687 00:53:34,800 --> 00:53:37,720 tangible capital assets as well. So, um 688 00:53:37,720 --> 00:53:39,320 you know, you see a $4 million 689 00:53:39,320 --> 00:53:41,800 surplus there, but uh it you know, it's 690 00:53:41,800 --> 00:53:43,560 it's being allocated and saved for the 691 00:53:43,560 --> 00:53:45,200 future, right? 692 00:53:45,200 --> 00:53:47,710 >> Through the chair, maybe I could just 693 00:53:47,710 --> 00:53:47,720 » Through the chair, maybe I could just 694 00:53:47,720 --> 00:53:50,760 address that question in part. 695 00:53:50,760 --> 00:53:53,240 We have to be careful to distinguish 696 00:53:53,240 --> 00:53:55,720 between the accrued surplus versus cash 697 00:53:55,720 --> 00:53:57,000 surplus. 698 00:53:57,000 --> 00:53:59,960 So, that figure that you're noting is 699 00:53:59,960 --> 00:54:02,200 based on an accrual and it includes 700 00:54:02,200 --> 00:54:06,520 non-cash items such as amortization, 701 00:54:06,520 --> 00:54:09,800 things like that. So, a truer picture is 702 00:54:09,800 --> 00:54:11,760 when you look at the cash surplus, which 703 00:54:11,760 --> 00:54:13,400 is identified in the financial 704 00:54:13,400 --> 00:54:14,720 statements. 705 00:54:14,720 --> 00:54:17,040 And there's a surplus related to the 706 00:54:17,040 --> 00:54:18,600 water fund, 707 00:54:18,600 --> 00:54:21,280 the sewer fund, and the general fund. 708 00:54:21,280 --> 00:54:23,400 And the overall cash surplus went down 709 00:54:23,400 --> 00:54:28,830 by $400,000. 710 00:54:28,840 --> 00:54:30,200 » Thank you for the clarification, Mr. 711 00:54:30,200 --> 00:54:31,440 Berglund. 712 00:54:31,440 --> 00:54:36,470 Any further questions from council? 713 00:54:36,480 --> 00:54:38,000 Being none, anything else on the 714 00:54:38,000 --> 00:54:43,110 presentation, Mr. Youngren? 715 00:54:43,120 --> 00:54:46,310 » That's it for me. 716 00:54:46,320 --> 00:54:47,760 Actually, one thing I'll just mention 717 00:54:47,760 --> 00:54:49,800 just about the question about 718 00:54:49,800 --> 00:54:51,600 bankruptcy. I mean, one of the things 719 00:54:51,600 --> 00:54:53,320 that we have to answer every year is 720 00:54:53,320 --> 00:54:55,520 going concern, right? So, is the city 721 00:54:55,520 --> 00:54:56,920 operating on a going concern basis, 722 00:54:56,920 --> 00:54:58,200 which means that we believe that it's 723 00:54:58,200 --> 00:54:59,240 going to continue operating into the 724 00:54:59,240 --> 00:55:01,480 future, and the auditors have to assess 725 00:55:01,480 --> 00:55:04,040 that as well. So, there's no concern on 726 00:55:04,040 --> 00:55:05,760 my end about the city's ability to 727 00:55:05,760 --> 00:55:08,920 continue operating as a going concern. 728 00:55:08,920 --> 00:55:10,670 >> Through the chair, maybe I could address 729 00:55:10,670 --> 00:55:10,680 » Through the chair, maybe I could address 730 00:55:10,680 --> 00:55:12,760 that question as well. 731 00:55:12,760 --> 00:55:13,760 Um 732 00:55:13,760 --> 00:55:14,830 >> Go ahead. 733 00:55:14,830 --> 00:55:14,840 » Go ahead. 734 00:55:14,840 --> 00:55:16,070 >> You know, the 735 00:55:16,070 --> 00:55:16,080 » You know, the 736 00:55:16,080 --> 00:55:18,160 the city has 737 00:55:18,160 --> 00:55:20,000 fairly healthy reserves that went up by 738 00:55:20,000 --> 00:55:22,000 3 million during the year. 739 00:55:22,000 --> 00:55:23,480 You know, a good percentage of those 740 00:55:23,480 --> 00:55:25,040 reserves, of course, are the community 741 00:55:25,040 --> 00:55:27,800 forest money says well. 742 00:55:27,800 --> 00:55:29,680 And as we know, you know, they are 743 00:55:29,680 --> 00:55:32,200 designated more for capital 744 00:55:32,200 --> 00:55:34,280 and cannot be used for operations, but 745 00:55:34,280 --> 00:55:37,640 overall, I think the city's financial 746 00:55:37,640 --> 00:55:40,760 picture from a reserve point of view is 747 00:55:40,760 --> 00:55:44,600 has improved from 2024 to 2025. 748 00:55:44,600 --> 00:55:46,560 And um 749 00:55:46,560 --> 00:55:50,320 you know, at the end of the day um 750 00:55:50,320 --> 00:55:53,680 you know, a surplus and reserves will 751 00:55:53,680 --> 00:55:56,160 grow over time if we have a disciplined 752 00:55:56,160 --> 00:55:57,440 approach 753 00:55:57,440 --> 00:55:59,200 to saving money. 754 00:55:59,200 --> 00:55:59,760 Um 755 00:55:59,760 --> 00:56:01,320 and I think that's what long-term 756 00:56:01,320 --> 00:56:03,640 financial planning does for you. It 757 00:56:03,640 --> 00:56:06,080 allows you to set aside money is on a 758 00:56:06,080 --> 00:56:08,720 disciplined basis to get into a better 759 00:56:08,720 --> 00:56:13,470 financial position over time. 760 00:56:13,480 --> 00:56:14,880 » Thank you, Mr. Mayor. You're good. 761 00:56:14,880 --> 00:56:16,400 Counselor Doep. 762 00:56:16,400 --> 00:56:18,150 >> Now, I'm going to move the motion that 763 00:56:18,150 --> 00:56:18,160 » Now, I'm going to move the motion that 764 00:56:18,160 --> 00:56:20,120 council approve 765 00:56:20,120 --> 00:56:23,360 the City of Powell River's draft 2025 766 00:56:23,360 --> 00:56:25,680 financial statements as presented. And 767 00:56:25,680 --> 00:56:27,280 if there's a second here, I'll speak on 768 00:56:27,280 --> 00:56:28,200 it momentarily. 769 00:56:28,200 --> 00:56:29,310 >> Okay, Counselor Doep. Go ahead, 770 00:56:29,310 --> 00:56:29,320 » Okay, Counselor Doep. Go ahead, 771 00:56:29,320 --> 00:56:30,200 Counselor Doep. 772 00:56:30,200 --> 00:56:32,350 >> Well, I'm I appreciate the presentation 773 00:56:32,350 --> 00:56:32,360 » Well, I'm I appreciate the presentation 774 00:56:32,360 --> 00:56:34,720 of staff and the auditors today. I'm 775 00:56:34,720 --> 00:56:37,400 glad uh that we're in a a reasonably 776 00:56:37,400 --> 00:56:39,960 strong financial position as a city to 777 00:56:39,960 --> 00:56:42,600 go forward. I appreciate that. And it's 778 00:56:42,600 --> 00:56:45,320 the work of a lot of people on staff and 779 00:56:45,320 --> 00:56:47,680 council to try to make sure that we have 780 00:56:47,680 --> 00:56:49,720 a plan going forward in the future to 781 00:56:49,720 --> 00:56:51,000 take care 782 00:56:51,000 --> 00:56:53,160 of the services that council hopes to 783 00:56:53,160 --> 00:56:56,120 provide. So, I'm in favor of accepting 784 00:56:56,120 --> 00:57:00,040 this and I think it's a good report. 785 00:57:00,040 --> 00:57:01,190 >> Counselor Elliott. 786 00:57:01,190 --> 00:57:01,200 » Counselor Elliott. 787 00:57:01,200 --> 00:57:03,070 >> Thank you. I'm in favor of the motion. I 788 00:57:03,070 --> 00:57:03,080 » Thank you. I'm in favor of the motion. I 789 00:57:03,080 --> 00:57:06,160 just wanted to comment on um 790 00:57:06,160 --> 00:57:08,160 the financial position that the city is 791 00:57:08,160 --> 00:57:12,320 um if if someone is worried about taxes 792 00:57:12,320 --> 00:57:14,840 continuing to increase, a disciplined 793 00:57:14,840 --> 00:57:17,040 model of savings has, you know, a 794 00:57:17,040 --> 00:57:18,640 certain percentage of increase each 795 00:57:18,640 --> 00:57:21,400 year. So, we're not looking at decreases 796 00:57:21,400 --> 00:57:23,600 in any time soon in order to get our 797 00:57:23,600 --> 00:57:26,560 reserves to where they're meant to be to 798 00:57:26,560 --> 00:57:28,520 support a city with the infrastructure 799 00:57:28,520 --> 00:57:30,840 of the size that we have. And so, that 800 00:57:30,840 --> 00:57:34,880 is um the reality of having a city such 801 00:57:34,880 --> 00:57:36,720 as ours with lots of 802 00:57:36,720 --> 00:57:40,160 infrastructure that's aging. So um I I 803 00:57:40,160 --> 00:57:43,040 am in favor of the motion. I don't 804 00:57:43,040 --> 00:57:45,200 believe our city is going bankrupt, but 805 00:57:45,200 --> 00:57:48,520 I do believe it is um requiring extra 806 00:57:48,520 --> 00:57:50,640 savings to deal with the assets that we 807 00:57:50,640 --> 00:57:53,560 have. Thanks. 808 00:57:53,560 --> 00:57:54,630 >> It's a problem. 809 00:57:54,630 --> 00:57:54,640 » It's a problem. 810 00:57:54,640 --> 00:57:56,430 >> Yeah, thank you, Mr. Chair. I appreciate 811 00:57:56,430 --> 00:57:56,440 » Yeah, thank you, Mr. Chair. I appreciate 812 00:57:56,440 --> 00:57:58,520 all the information that has been uh 813 00:57:58,520 --> 00:57:59,800 discussed 814 00:57:59,800 --> 00:58:00,800 uh 815 00:58:00,800 --> 00:58:03,000 today and the work by staff and our 816 00:58:03,000 --> 00:58:04,440 auditor. 817 00:58:04,440 --> 00:58:06,520 I guess the one major concern on a 818 00:58:06,520 --> 00:58:08,600 go-forward basis in terms of the uh 819 00:58:08,600 --> 00:58:10,960 comment that Councillor Doughty received 820 00:58:10,960 --> 00:58:12,120 is 821 00:58:12,120 --> 00:58:13,280 um 822 00:58:13,280 --> 00:58:14,800 the condition of our roads and what's 823 00:58:14,800 --> 00:58:17,720 underneath uh the pavement in terms of 824 00:58:17,720 --> 00:58:18,800 uh 825 00:58:18,800 --> 00:58:20,600 our infrastructure. 826 00:58:20,600 --> 00:58:23,720 That is going to be something that uh 827 00:58:23,720 --> 00:58:25,920 is has to be dealt with sooner or later 828 00:58:25,920 --> 00:58:28,280 and it's uh long overdue. 829 00:58:28,280 --> 00:58:30,200 I don't think our reserves are anywhere 830 00:58:30,200 --> 00:58:31,600 near the where they should be in that 831 00:58:31,600 --> 00:58:33,280 regard and uh 832 00:58:33,280 --> 00:58:35,800 that's something that we have to keep in 833 00:58:35,800 --> 00:58:38,800 in mind uh as the city goes forward. 834 00:58:38,800 --> 00:58:41,280 Thank you, Chair. 835 00:58:41,280 --> 00:58:43,230 >> Okay. Well, before I call the vote, 836 00:58:43,230 --> 00:58:43,240 » Okay. Well, before I call the vote, 837 00:58:43,240 --> 00:58:44,560 because I might forget if I don't do 838 00:58:44,560 --> 00:58:47,240 this now, I want to thank staff and 839 00:58:47,240 --> 00:58:50,240 especially thank uh Mr. Beauregard who's 840 00:58:50,240 --> 00:58:51,880 uh served as our interim CFO for the 841 00:58:51,880 --> 00:58:54,720 last uh 6 7 months. Today is his uh 842 00:58:54,720 --> 00:58:56,560 final day and his final duty here. So, 843 00:58:56,560 --> 00:58:58,560 thank you for uh your service to our 844 00:58:58,560 --> 00:59:00,280 city for this brief period of time in 845 00:59:00,280 --> 00:59:02,600 this transition. We welcome our new CFO 846 00:59:02,600 --> 00:59:04,520 and uh we wish you the best in your 847 00:59:04,520 --> 00:59:06,600 future endeavors. 848 00:59:06,600 --> 00:59:08,030 >> Thank you. 849 00:59:08,030 --> 00:59:08,040 » Thank you. 850 00:59:08,040 --> 00:59:09,630 >> And I'll call the question. All in 851 00:59:09,630 --> 00:59:09,640 » And I'll call the question. All in 852 00:59:09,640 --> 00:59:11,560 favor. 853 00:59:11,560 --> 00:59:13,560 That is unanimous. 854 00:59:13,560 --> 00:59:15,390 >> Through the chair, could I just provide 855 00:59:15,390 --> 00:59:15,400 » Through the chair, could I just provide 856 00:59:15,400 --> 00:59:16,800 a few remarks? 857 00:59:16,800 --> 00:59:18,310 >> Sounds good. 858 00:59:18,310 --> 00:59:18,320 » Sounds good. 859 00:59:18,320 --> 00:59:20,790 >> I just like to acknowledge uh the work 860 00:59:20,790 --> 00:59:20,800 » I just like to acknowledge uh the work 861 00:59:20,800 --> 00:59:23,880 of staff in completing year end and the 862 00:59:23,880 --> 00:59:26,280 financial statements. Um 863 00:59:26,280 --> 00:59:28,080 throughout the year um 864 00:59:28,080 --> 00:59:30,760 there were staff shortages in finance, 865 00:59:30,760 --> 00:59:33,680 but they persevered and produced the 866 00:59:33,680 --> 00:59:35,920 financial statements 867 00:59:35,920 --> 00:59:38,240 in a fairly timely manner. 868 00:59:38,240 --> 00:59:41,440 And under Ryan's leadership, they 869 00:59:41,440 --> 00:59:43,040 gelled together to produce the 870 00:59:43,040 --> 00:59:46,080 statements and to provide a clean audit 871 00:59:46,080 --> 00:59:47,960 opinion, which I think is to be 872 00:59:47,960 --> 00:59:51,550 commended. 873 00:59:51,560 --> 00:59:52,720 » Good to hear. 874 00:59:52,720 --> 00:59:54,160 We have a great team. 875 00:59:54,160 --> 00:59:55,600 So. 876 00:59:55,600 --> 00:59:57,590 >> Uh, moving into public clarification, 877 00:59:57,590 --> 00:59:57,600 » Uh, moving into public clarification, 878 00:59:57,600 --> 01:00:10,910 Mr. Glinsky. 879 01:00:10,920 --> 01:00:12,360 » Uh, good afternoon, Chair. Thank you for 880 01:00:12,360 --> 01:00:15,040 the opportunity. Um, I was watching Mr. 881 01:00:15,040 --> 01:00:17,560 Youngman's presentation and 882 01:00:17,560 --> 01:00:20,080 with great interest and I was looking in 883 01:00:20,080 --> 01:00:22,240 the agenda package and I did not see it 884 01:00:22,240 --> 01:00:26,280 there. Am I missing something? 885 01:00:26,280 --> 01:00:27,830 >> Well, the presentation, yeah, the slides 886 01:00:27,830 --> 01:00:27,840 » Well, the presentation, yeah, the slides 887 01:00:27,840 --> 01:00:31,150 weren't part of the package, so. 888 01:00:31,160 --> 01:00:33,280 » Uh, that would be wonderful, Chair. I'll 889 01:00:33,280 --> 01:00:34,800 make arrangements with Mr. Youngman. 890 01:00:34,800 --> 01:00:35,320 Yes. 891 01:00:35,320 --> 01:00:36,710 >> Councillor Elliott has some comments. 892 01:00:36,710 --> 01:00:36,720 » Councillor Elliott has some comments. 893 01:00:36,720 --> 01:00:39,550 >> Thank you. So, I was following along in 894 01:00:39,550 --> 01:00:39,560 » Thank you. So, I was following along in 895 01:00:39,560 --> 01:00:41,640 um, slides that were a part of appendix 896 01:00:41,640 --> 01:00:43,280 B 897 01:00:43,280 --> 01:00:48,440 of the BDO presentation. And so, maybe 898 01:00:48,440 --> 01:00:49,400 that's where it's at. 899 01:00:49,400 --> 01:00:51,110 >> He's referring to Mr. Youngman's 900 01:00:51,110 --> 01:00:51,120 » He's referring to Mr. Youngman's 901 01:00:51,120 --> 01:00:51,760 presentation. 902 01:00:51,760 --> 01:00:52,750 >> Oh, okay. 903 01:00:52,750 --> 01:00:52,760 » Oh, okay. 904 01:00:52,760 --> 01:00:53,990 >> I believe most of the data was in 905 01:00:53,990 --> 01:00:54,000 » I believe most of the data was in 906 01:00:54,000 --> 01:00:56,600 appendix A, but not in the slide format, 907 01:00:56,600 --> 01:00:57,120 so. 908 01:00:57,120 --> 01:00:58,470 >> Right. Okay, yeah, they're part of the 909 01:00:58,470 --> 01:00:58,480 » Right. Okay, yeah, they're part of the 910 01:00:58,480 --> 01:01:03,470 finance, yeah. 911 01:01:03,480 --> 01:01:05,000 » That's awesome. Thank you, Chair. I 912 01:01:05,000 --> 01:01:06,840 appreciate the opportunity. 913 01:01:06,840 --> 01:01:09,510 >> Okay, Mr. Glinsky. 914 01:01:09,510 --> 01:01:09,520 » Okay, Mr. Glinsky. 915 01:01:09,520 --> 01:01:14,030 Uh, any callers online, Mr. Sian? 916 01:01:14,040 --> 01:01:15,840 There's no one online and seeing that, I 917 01:01:15,840 --> 01:01:18,280 believe I can just adjourn. 918 01:01:18,280 --> 01:01:19,800 Yeah, meeting is adjourned. Thank you, 919 01:01:19,800 --> 01:01:22,200 everyone.