Commentary: Financial reporting season opens at city halls across B.C.

Commentary: Financial reporting season opens at city halls across B.C..

There will be a public meeting on June 23rd in the City of North Van. The report is available here:

http://www.cnv.org/attach/2014%2006%2009%20item%2012.pdf

We do note that the commentary (quoted in part) from Integrity BC:

“It’s where ratepayers will learn that a funding deficit of $1.37 billion emerged in B.C.’s Municipal Pension Plan at the end of 2012.

In a message to municipal employees, the chair of the trustees preferred to write that the plan was “96.5 per cent funded.” No need to cast a pall over summer with words like debt, underfunded, liability or deficit.

So it was undoubtedly with the purest of actuarial intentions, that the copy provided to local governments for use in their 2013 financial reports referred to it as a “$1,370 million funding deficit.” However, even that wording seems to have led to some confusion.

Abbotsford, Fort St. John and other municipalities simply copied and pasted the boilerplate paragraph into their financial notes. No harm, no foul. Vancouver, on the other hand, chose to simplify the text and in doing so reduced the deficit to all of $1.37 million.

But it’s definitely one thousand, three hundred and seventy million dollars or to be succinct $1.37 billion. It’s why contribution rates are going up next month with an increase that works out to an additional 1.4 per cent of salary, split between local governments and municipal employees.”

 

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2 responses to “Commentary: Financial reporting season opens at city halls across B.C.

  1. North Van got it right, but used the $1,370 million terminology. $1,370 million equals $1.37 billion. Vancouver used “a $1.37 million funding deficit.”

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