2018/19 HFN Financial Plan

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HAW IIḤ COUNCIL STATEMENT

On behalf of the Ḥawiiḥ Council, we are encouraged that our Nation is committed to unity amongst the community and our leadership. We are also excited that Tradition Government is playing an important role in the decisions and direction of its Nation, and we are building a good working relationship with the Elected Government. The fiscal 2018-2019 budget allows us to create this place of discussion and unity.

As your Ḥawiiḥ Council, we are committed to creating a strong community with a “Modern Mind” while still respecting our teachings of the Nations’ “Ancient Spirit.” We will focus on sharing our knowledge, traditions, and culture with both Huu-ay-aht and non-Huu-ay-aht, so they will better understand who we are. Last year we started the education piece “Huu-ay-aht 101,” and we continue to build on this important project. We want to focus our efforts on the things that matter for the tribe. So, we want to align our energy and focus the Ḥawiiḥ on being parallel with the Nation in what Huu-ay-aht is doing.

In 2016-17, our Nation developed a new strategic plan for four years. In moving forward financially, we are committed to act responsibly as we strive to meet the goals set out in this plan. We will build on the successes of the Nation’s activities in 2017-2018, as well as using our power of self-government, treaty, and economic development to overcome the adversity of colonization and achieve the five posts laid out in the strategic plan for a strong Huu-ay-aht.

In the best interests of present and future generations of Huu-ay-aht, we will work with our elected council to promote our culture and traditions, while honouring the priorities of the Strategic Plan (2017-2019) commitments to heal our ḥahuułi and bring our people home. We will do this by focusing on the creation and renewal of infrastructure, revival of language and culture, conservation of natural resources in our ḥahuułi, citizen development through support and empowerment, and building a strong economy.

We also want to ensure everything we do has a Huu-ay-aht look and feel. We want to promote it in our Government and in our businesses to showcase that they are Huu-ay-aht-owned. Establishing a strong Huu-ay-aht symbol, our welcome figures that are in the Royal British Columbia Museum and stand out our House of Huu-ay-aht, is another initiative to distinguish the front of our offices and businesses, as well as welcoming people to Huu-ay-aht.

It is vital to have control of our cultural activity funding and, at that table, decide how we would like to apply it to revitalize our culture. We are talking about focusing our energies on the Huu-ay-aht, looking at all the aspects of the tribe. We have our Nananiiqsu meeting with our Elders and our chiefs, having a more meaningful role in our cultural and communications departments, and our children’s programs.

We are in one canoe, building a strong, sustainable community for the future, one that will offer citizens more and prepare them for the future. We are building a Nation together. Culture and language are a key focus for the Ḥawiiḥ Council and working as one we will achieve success to be a strong Nation – one people with one voice. We respect our “Ancient Spirit, Modern Mind,” and we are committed to a brighter future for all.

On behalf of the Ḥawiiḥ Council,

ƛiišin Derek Peters Tayii Ḥawił Huu-ay-aht First Nations

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EXECUTIVE COUNCIL STATEMENT A full year into the new Strategic Plan, 2017-18 was an exciting year for Huu-ay-aht. The government worked hard to meet the commitments it outlined in the strategic plan, while committing to fiscal responsibility. Together with Ḥawiiḥ Council, we worked diligently to build a stronger Huu-ay-aht, focusing on what is in the best interests of our citizens and future generations. We set out strong priorities for the next three years of healing our ḥahuułi and bringing our people home. As your elected government, we are committed to acting responsibly on your behalf in all Nation business. We will uphold our promise of transparency to help create a brighter future for all citizens. By being transparent and accountable to our people, we also work to increase citizen involvement and participation. The completion and implementation of our Social Services Panel report is point of great pride for this Executive Council. Bringing our children home is crucial to the long-term health of our Nation and Huu-ay-aht families. We are excited to continue implementing the recommendations from the report in 2018-19. In 2017-18, Huu-ay-aht built the Nations’ economy by launching a cultural tourism pilot project to Kiixin. We signed a historic co-management agreement for a multi-billion dollar LNG export facility. With these and other initiatives, the Government strives to increase employment, generate more revenue, work towards making our treaty work, and generate wealth from our lands. The 2018/19 Budget has been designed to help achieve these items, as well as ensure Huu-ay-aht at all levels have a better understanding of its content. We worked hard to build a team that works well together through greater respect and partnership. Together, we strive to deliver a strong Huu-ay-aht Government and healthy economy. We are also thankful to all who have contributed to the preparation of the 2018/19 Budget. We cannot overstate the immeasurable contributions of government administration, our government committees, Ḥawiiḥ Council, and the Huu-ay-aht citizens towards the achievement of a stronger Huu-ay-aht Nation. We hope this budget will give opportunity to the citizens of Huu-ay-aht to exercise their voices for more accountability and prudent management of the Government resources and programs. On behalf of the Huu-ay-aht Executive Council, Emchaaʔiik Robert J. Dennis Sr. Chief Councillor

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Huu-ay-aht First Nations

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EXECUTIVE SUMMARY

The 2018/19 Huu-ay-aht First Nations Financial Plan focuses on the implementation of the

Nation’s Three-Year Strategic Plan building on the successes of the Nation’s activities in 2017-

2018, as well as using our power of self-government, treaty, and economic development to

overcome the adversity of colonization and achieve the following five posts for a strong

Huu-ay-aht:

By 2033:

1. Our people will be guided through self-determination to reach their fullest potential. 2. Our children will grow up safe, healthy and connected to our home and culture/values. 3. Our home will be safe, healthy, appealing place where half of our people choose to live. 4. Our land will provide sustainable wealth that respects Huu-ay-aht values of

conservation. 5. Our economy will operate sustainably, is the major employer in the region and the major

source of revenue for the Nation.

This is in the best interests of present and future generations of Huu-ay-aht.

The priorities of the strategic plan are laid out in 2017-2019 commitments to healing our

Ha’houtlthee and bringing our people home commitment:

- Creation and renewal of infrastructure

- Revival of language and culture

- Conservation of natural resources in our hahoulthee

- Citizen development through support and empowerment, and

- Building a strong economy

FINANCIAL FORECAST

THREE-YEAR FORECAST OF REVENUE

Revenue 2018/19 2019/20 2020/21 Self-Generated

Invested Wealth Fund 600,000 600,000 600,000 Interest 38,500 38,500 38,500 Forestry Stumpage 1,894,656 2,250,000 2,250,000 HGB Dividend 1,400,000 900,000 900,000 KLNG PA Funding 9,940,000 9,940,000 2,000,000 Pawaats 20,000 20,000 20,000 13,893,156 13,748,500 5,808,500 Government Funding

Resource Revenue Sharing 219,883 215,000 215,000 INAC Funding 3,007,441 3,107,288 3,210,450 Treaty Capital Funding 2,603,455 2,603,455 2,603,455 Provincial fisheries Funding 83,654 83,654 83,654 Provincial EcDev Funding 41,822 41,822 41,822 NTC Program Funding 40,000 40,000 40,000 5,996,255 6,091,219 6,194,381

Total Revenue 19,889,411 19,839,719 12,002,881

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Expenses 2018/19 2019/20 2020/21Community Services Department2000 Community Services Program 195,621 199,533 203,5242100 Child & Family Services 974,375 988,329 1,002,2952200 Health & Social Services 1,409,851 1,326,635 1,351,8673100, 3150 Paawats Program 191,328 195,154 199,0573200 Education Program 909,332 937,869 956,0863300, 3305 Culture and Nananiiqsu Program 427,548 230,599 233,7111800 Communications Program 211,067 216,909 220,317

4,319,122 4,095,027 4,166,858Infrastructure1300 Housing Program 50,000 100,000 100,0001400 Infrastructure and Engineering Program 964,847 977,004 984,343

1,014,847 1,077,004 1,084,343

Land and Natural Resources1600 Natural Resources 584,434 562,212 569,1701605 Food Fish Program 142,500 110,500 119,5001610 Fish Treaty Implementation 405,000 405,000 405,000

726,934 672,712 688,670Economic Development Department4000 Economic Development Program 477,414 481,440 485,547

477,414 481,440 485,547Finance and Administration Department1000 Corporate Services Program 1,102,791 943,562 914,6397503 Land Investment Costs 250,000 250,000 980,0007506 Business Evaluation Team 230,000 206,000 206,0007509 External Funding Team 172,995 171,755 113,0401700 Admin Services 412,730 417,984 423,344

2,168,516 1,989,301 2,637,023

Total Economic Development Services Dept

Total Community Services Dept

Total Lands & Natural Resources Dept

THREE-YEAR FORECAST OF OPERATING EXPENSES

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Expenses (Continued) 2018/19 2019/20 2020/21

Government Services Department1200 Government Council 1,397,712 1,422,186 1,356,9411205 Hawiih Council 215,878 220,195 224,5991210 Committees Program 79,000 80,580 82,192

1,692,590 1,722,962 1,663,732

Cultural Tourism Department4100 Cultural Tourism 718,766 556,598 559,895

718,766 556,598 559,895

Implementation Department1710 Implementation Department 466,795 475,511 484,4017502 Watershed Restoration 2,000,000 2,000,000 2,000,0007505 Jobs and Training Team 277,355 253,583 254,8367507 PA Due Diligence 1,250,000 1,250,000 1,250,0007508 PA Engagement 525,000 495,000 480,000

4,519,151 4,474,095 4,469,238

Human Resources Department1705 Human Resources 460,025 467,225 474,570

460,025 467,225 474,570

LNG Restricted Cash flow 2,794,649 2,873,661 -4,303,876Contingency 500,000 500,000 500,000

Total Expenses 19,392,013 18,910,025 12,425,999

Annual Operating Surplus/(Deficit) 497,398 929,694 -423,118

Total Human Resources Dept

Total Cultural Tourism Dept

THREE-YEAR FORECAST OF OPERATING EXPENSES AND ANNUAL OPERATING SURPLUS (DEFICIT)

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Capital and One-Time Funding 2018/19 2019/20 2020/21

Time Limited Federal Funding 445,372 0 0 INAC Funding for Subdivision 600,000 600,000 0 INAC Funding for Sewer 0 1,800,000 1,800,000 BMSC Sewage contribution 0 600,000 0 Huu-ay-aht Settlement Trust 1,000,000 0 0 Surplus Carry-forward 6,977,054 916,324 873,517Total Capital and One-Time Funding 9,022,426 3,916,324 2,673,517

Capital and Mandatory Expenses Capital 8,603,500 3,972,500 2,182,500 Treaty Loan 0 0 0Total Capital and Mandatory Expenses 8,603,500 3,972,500 2,182,500

Annual Capital Surplus/(Deficit) 418,926 -56,176 491,017

28,911,837 23,756,043 14,676,39827,995,513 22,882,525 14,608,499

916,324 873,517 67,900

Total FundingTotal Expenditures

Total Surplus/(Deficit)

THREE-YEAR FORECAST OF CAPITAL AND ONE TIME FUNDING AND TOTAL SURPLUS (DEFICIT)

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THREE-YEAR FORECAST OF CAPITAL

Account Description Detail 2018-19 2019-2020 2020-2021

Infrastructure DepartmentSubdivision 3,000,000 500,000 500,000Sewer Project 2,732,000 3,200,000 150,000Six Plex 1,500,000 0 0HOH Upgrades House of Huu-ay-aht 185,000 0 0Public Works Yard Upper Anacla 150,000 175,000 50,000Quanasit Building Move Sarita Steel building 100,000 0 0Sarita Asset Moving and fixing 100,000 50,000 25,000Comprehensive Community Plan 100,000 0 0Vehicles 47,500 47,500 47,500Subtotal - Government Services Department 7,914,500 3,972,500 772,500

Community Services DepartmentCanoe 40,000 0 0Paawats PA Garage reno 42,000 0 0Education 7,000 0 0Subtotal - Community Services Department 89,000 0 0

Lands and Natural Resources DepartmentCommercial Licence Acquitision 500,000 0 1,410,000Lands Registry 50,000 0 0Derelict Boat Removal 50,000 0 0Subtotal -Lands and natural Resources Departm 600,000 0 1,410,000

Total - Capital and Major Infrastructure 8,603,500 3,972,500 2,182,500

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CASH MANAGEMENT

Cash management will be in accordance with the Cash Management Policy Regulation to

maximize interest revenue and to maintain a 60-day operating reserve in the main operating

account. Initial allocations of funding may be placed in money market or other high interest

accounts and drawn quarterly or monthly as needed. All planned sources of revenue are from

confirmed government allocations or conservative estimates of interest income. Cash will be

used to fund ongoing programs and operations, provide allocation to the invested wealth fund,

and invest in capital upgrades and acquisitions.

ASSUMPTIONS AND RISKS

Revenues are recorded at either known amounts or at conservative estimates for highly likely

amounts. Funding that is uncertain, highly variable, or discretionary at the request of a third-

party has not been recorded in the draft budgeted and will be accounted and allocated when

confirmation of funding is received. As a result of this constraint, revenues as shown are highly

certain. It is assumed that additional funds will be identified throughout the year as funding

grants and proposals are approved those funds will be used to enhance or complement existing

program funding. A mid-year review will be completed to determine the financial performance of

the execution of the strategic plan and reallocate and address shortfalls and new revenue as

required.

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YTD 2017-8 Budget 2018-19 Budget 2019-20 Budget 2020-21Financial Assets

Cash and Equivalents 18,141,354 920,537 709,798 378,484 Restricted Cash - 3,540,725 593,575 -IWF 12,673,489 19,716,829 20,505,502 21,325,722 HST 5,406,486 2,822,745 2,935,655 3,053,081 Other 10,342,189 11,342,189 11,342,189 11,342,189

Total Financial Assets 46,563,518$ 38,343,025$ 36,086,719$ 36,099,476$

LiabilitiesLoans 3,819,760 3,612,760 3,399,260 3,180,260 Other 757,392 850,000 850,000 850,000

Total Liabilities 4,577,152$ 4,462,760$ 4,249,260$ 4,030,260$

Capital Assets 21,518,819$ 30,122,319$ 33,094,819$ 34,277,319$

Opening Surplus 42,301,964 63,505,187 64,002,585 64,932,278 Current Surplus/(Deficit) 21,203,223 497,398 929,694 (423,118) Accumulated Surplus 63,505,187$ 64,002,585$ 64,932,278$ 64,509,161$

THREE-YEAR ESTIMATE OF THE BALANCE SHEET

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