2018 Annual Report

Notes to the Consolidated Financial Statements

Consolidated Financial Statements

For the year ended December 31, 2018

18. Expenses and Expenditures by Object Operations

Capital Acquisitions

2018 Total

2018 Budget

2017 Total

Goods and services Wages and salaries

$ 57,454,958 $ 43,785,048 $ 101,240,006 $ 243,935,569 $ 78,209,829

42,182,171 1,612,938

1,028,201 43,210,372 45,463,931 43,388,499

Interest

-

1,612,938

2,547,209

1,720,537

Total

101,250,067 44,813,249 146,063,316 291,946,709 123,318,865

Amortization expenses Contributed tangible capital assets Total Expenses and Expenditures

21,168,109

-

21,168,109 19,780,000 20,585,216

-

29,727,691 29,727,691 20,000,000 16,725,863

$ 122,418,176 $ 74,540,940 $ 196,959,116 $ 331,726,709 $ 160,629,944

19. Contractual Rights

(a) Contributed Tangible Capital Assets There are a number of development projects in progress throughout the City where there is a requirement for the developer to provide infrastructure to the City such as roads, sewers, sidewalks and street lighting. The fair value of the infrastructure is recognized as "contributed tangible capital assets" revenue in these consolidated financial statements when the City accepts responsibility for the infrastructure. Fair value will be determined at the time the assets are recognized. (b) Land Sale The City has entered into an agreement that will result in the phased sale of certain City lands. The City expects title to part of the lands to transfer to the purchaser in 2019 and the balance in 2020. Total proceeds of $4,000,000 will be received as title transfers. 20. Pension Plan The employer 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 administering the plan, including investment of assets and administration of benefits. The plan is a multi-employer defined benefit pension plan. Basic pension benefits are based on a formula. As at December 31. 2017, the plan has about 197,000 active members and approximately 95,000 retired members. Active members include approximately 39,000 contributors from local governments. Every three years, an actuarial valuation is performed to assess the financial position of the plan and adequacy of plan funding. The actuary determines an appropriate combined employer and member contribution rate to fund the plan. The actuary's calculated contribution rate is based on the entry-age normal cost method, which produces the long-term rate of member and employer contributions sufficient to provide benefits for average future entrants to the plan. This rate may be adjusted for the amortization of any actuarial funding surplus and will be adjusted for the amortization of any unfunded actuarial liability. The most recent valuation for the Municipal Pension Plan as of December 31, 2015, indicated a $2,224 million funding surplus for basic pension benefits on a going concern basis. As a result of the 2015 basic account actuarial valuation surplus and pursuant to the joint trustee agreement, $1.927 million was transferred to the rate stabilization account and $297 million of the surplus ensured the required contribution rates remained unchanged. The City of Maple Ridge paid $3,390,825 (2017 $3,436,295) for employer contributions while employees contributed $2,810,502 (2017 $2,817,284) to the plan in fiscal 2018. The next valuation will be as at December 31, 2018, with results available in 2019. Employers participating in the plan record their pension expense as the amount of employer contributions made during the fiscal year (defined contribution plan accounting). This is because the plan records accrued liabilities and accrued assets for the plan in aggregate, resulting in no consistent and reliable basis for allocating the obligation, assets and cost to individual employers participating in the plan.

54 City of Maple Ridge - 2018 Annual Report