file: ITAC1 Annual Summary (Excel) Garrett H.

Polman June 29, 2011

DISTRICT OF WEST VANCOUVER FINANCIAL STATISTICS 2005-2010

Executive summary The long term trends of municipal expenditures and the income of West Vancouver residents continue to diverge, with municipal expenses rising faster than the inflation rate and median incomes declining between 2000 and 2005 and staying virtually flat between 2007 and 2009. Municipal Salaries & Benefits continue to rise at unsustainable rates, particularly at the senior levels. Around 40% of employees now receive remuneration over $75,000, and in 2010 55 staff, six times as many as in 2003 and now making up 9% of total staff, made over $100,000. The CFIB estimates that S&Bs are 30%-35% higher in the public sector compared to the private sector (nationally). The creep in S&Bs means a rising proportion of expenditures goes to employees and a declining proportion is left for other costs (e.g. materials, equipment, etc.) After being in the high 70s for a number of years, the percentage in the major Ten Divisions going to S&Bs was 80.8% in the 2011 budget (2011-2015 Five-Year Financial Plan book, p. 106). This has implications. For example, the painting of the white and yellow lines on roads has been cut back (a safety issue at night in the rainforest). 1. Population 2005 43,967 2006 42,863 -2.51% 2007 42,977 0.27% 2008 42,913 -0.15% 2009 43,364 1.05% 2010 44,058 1.60% Increase 2005-2010 91 0.21%

Total % Growth

Source: BC Stats estimates as per the West Vancouver Annual Reports of 2008 (for 2005) and of 2010 (for 2006-10).

2.

Comparison of CPI + population increase versus West Vancouver's operational expense increases Total CPI + Pop. -0.5% 2.5% 2.2% 1.4% 3.4% WV Operational Expense % increase 5.2% 7.0% 19.1% 2.5% 5.8%

Year 2006 2007 2008 2009 2010

CPI 2.0% 2.2% 2.3% 0.3% 1.8%

Population -2.51% 0.27% -0.15% 1.05% 1.60%

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Five-Year Total

9.50%

0.21%

9.7%

45.5%

* The sum of the 5 years expressed annually is less than the 2004-2009 cumulative total as the annual base varies.

3.

Divisional Expenditures and total municipal Salaries & Benefits ($) 2005 2006 52,235,515 5.2% n/a 2007 55,906,329 7.0% n/a 2008 66,593,425 19.1% 46,017,758 n/a 56,154,376 2.0% 2009 68,272,261 2.5% 48,393,519 5.2% 60,349,140 7.5% 2010 72,233,251 5.8% 51,296,245 6.0% 64,212,644 6.4% Increase 2005-2010 22,578,176 45.5% n/a

The 10 Divisions

49,655,075

S&Bs n/a (Ten Divisions only) S&Bs 48,606,692 (Total Municipality)

51,945,871 6.9%

55,059,445 6.0%

15,605,952 32.1%

In 2009 tangible capital assets (TCA) were recorded on an amortized basis; 2008 was restated accordingly but not prior years; hence the 19.1% increase in 2008. This change, without restatement for prior years, distorts comparisons for the earlier years. Note that while the Annual Reports are now prepared with the TCA, the annual budgets are prepared without TCA, distorting comparisons of budgets to actuals. Sources: Annual Reports for WV for 2008 (p.65), 2009 (pp. 48f.) and 2010 (pp. 40f.). S&Bs for the Ten Operating Divisions started being reported as of 2008. S&Bs for the Total Municipality include the Ten Divisions plus employees in the Golf, Cemetery, Utilities and Transit Funds, but without any breakdown (i.e. aggregate total municipal numbers only). 4. Expenses of the Ten Divisions in the 'General Fund'. 2008 1,889,660 1,709,444 1,004,358 4,460,603 12,408,367 12,180,133 7,200,843 3,513,906 18,010,439 4,215,672 $66,593,425 2009 1,993,767 2,036,649 969,601 4,693,867 12,805,252 12,653,566 5,722,044 3,618,469 19,461,067 4,317,979 $68,272,261 2010 2,027,631 2,389,349 1,049,237 5,049,434 13,376,193 13,425,209 6,753,021 3,939,559 19,949,365 4,274,253 $72,233,251

Administration Sustainability & Culture HR & Payroll Financial Services Police Fire & Rescue Engineering & Transport. Planning & Lands Parks & Community Serv. Library Total

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% Change

19.12%

2.52%

5.80%

Accounting for Tangible Capital Assets commenced in 2008 and was responsible for most of the % increase for that year. See section 2 for the totals for prior years (not broken down by division) . Source: West Vancouver Annual Reports. 5. Analysis of increases for staff who received remuneration above $75,000 (ex-police) Around 40% of staff (excluding the police who do not report these data), receive remuneration over $75,000. According to the 2009 Financial Information Act report the sharp increase in 2009 was caused primarily by two factors: (1) There were 27 pay period in 2009 compared to the usual 26 and (2) Firefighters received adjustments to their 2007 and 2008 salaries as a result of a retroactive settlement reached in 2009. FTEs (headcount) are not provided in the Annual Reports, but the 2009 and 2010 FTEs (ex-police) may be found on p. 86 of the 2011-15 Five Year Financial Plan book. Our . estimate for 2008 is 616 (ex-police).
# of Staff > $75,000 % of total Staff Remuneration % of total Staff of >$75,000 Remuneration

2010 2009 2008 2007 2006

192 204 126 134 99

30% 33% 20% n/a n/a

$17,998,612 $19,595,975 $11,825,011 $11,510,741 $9,091,324

38.9% 42.3% 28.8% 29.4% 24.6%

Since 2006 this group has virtually doubled. Note both staff and remuneration figures exclude the police who claim exemption from having to report remuneration by individual police officer owing to security concerns. While the Vancouver Sun in an article of June 24, 2011 reported 25% of provincial employees (including crown agencies, universities,the health authorities and municipalities) received remuneration over $75,0000 in 2009, the proportion in West Vancouver exceeds that. Source: annual West Vancouver FIA reports.

6.

Analysis of increases for staff who received remuneration above $100,000 (ex-police)

# of Staff > $100,000

% of total Staff

Remuneration % of total Staff of >$100,000 Remuneration

2010

55

9%

$6,415,207

13.9%

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2009 2008 2007 2006 2005 2004 2003

65 30 24 14 14 8 9

10% 5% n/a n/a n/a n/a n/a

$7,588,435 $3,649,631 $2,978,912 $1,759,525 $1,677,850 $1,012,376 $1,085,110

16.4% 8.9% 7.6% 4.8% n/a n/a n/a

All numbers exclude police. Both the number of staff receiving over $100,000 and the dollar amounts (in total) have more than doubled between 2007 and 2010. See section 5 for the causes. While 2009 was extraordinarily high due to special causes (and 2010 is therefore slightly lower), the sharp upward trend is expected to continue. Source: annual West Vancouver FIA reports.

7.

Five-Year rolling analysis of remuneration of staff receiving over $100,000 (ex-police)

2002-2007 2003-2008 2004-2009 2005-2010

Total period Annual aver. No. of staff

38.9% 7.8% 11

36.7% 7.3% 21

38.5% 7.7% 15

34.8% 7.0% 12

The purpose of this analysis is to see what happens over a 5-year period and what trends emerge when comparing the 5-year periods. This captures all staff who were with the municipality for the five-year period in question and whose remuneration at the end of the five years was above $100,000. While a large number of the firefighters have their remuneration set by contract, the majority of the other municipal employees earning above $100,000 have their remuneration set by Council. These salary increases have consistently been set significantly above the average salary increases in this province and have usually been higher than those provided to unionized staff. (See section 3 above.) The group earning over $100,000 receives a rapidly growing proportion of staff remuneration. (See section 6 above.)

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8.

Decline in median income

West Vancouver's municipal expense increases occurred during years while the median income of residents dropped significantly between 2000 and 2005. Recent Stats Canada data show median family income in Metro Vancouver during 2007-09 rose very marginally and went down between 2008 and 2009 due to the financial recession.

West Vancouver Total economic families Senior families (both 65+) Individuals

2000 $99,207 $36,191 $66,278

2005 $84,672 $25,023 $59,914

$ Change -$14,535 -$11,168 -$6,364

% Change -14.7% -30.9% -9.6%

% of population aged 65+ (was 20.9% in 1996)

22%

23%

Metro Vancouver Median family income (all types of families)

2007 $66,330

2008 $68,670

2009 $67,550

% Change 1.8%

Source: Stats Canada 2006 census data. Stats Canada defines an economic family as a group of two or more people living in the

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same dwelling and related to each other by blood, marriage or common-law and includes adopted and foster children. Data for 2007-09 was published by Stats Canada June 28, 2011 and is based on the annual income tax returns. Unlike the census data, which are available at the West Vancouver level, the tax data are only available at the Metro Vancouver level.

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