Tanya Foubert CANMORE
The Town of Canmore’s audited financial statements have been completed and all financial indicators are pointing toward a good set of books elected officials can be proud of.
That’s the report from Avail Chartered Professional Accountants and auditor Calvin Scott, who appeared in front of the municipality’s finance committee at the end of April.
Scott told elected officials that key performance indicators point toward a healthy financial situation for the municipality. Those include comparing assets to liabilities, operating expenses to taxable assessment, and public debt to revenues.
“You are in a good place compared to other towns we used as comparables, absolutely,” Scott said.
The report was good news for Mayor John Borrowman, who noted the finance department has worked hard over the years to manage and present the complex municipal financial systems.
“Kudos to the finance department for the work they continue to do and advice they continue to give council,” he said. “It is largely through following advice that we find ourselves in such a healthy financial situation.”
Council voted on Tuesday (May 1) to accept the financial statements as presented.
Scott told council comparable data came from using other municipalities in Alberta with similar populations.
“We spent a lot of time compiling comparative information for you, so you can tell how you are performing compared to other municipalities,” Scott said. “Our opinion is that these statements are in fact in line with the accounting standards for the public sector.
“As council, it is your responsibility to ensure management is fulfilling its duties regarding financials.”
Audited financial statements are required to be prepared for each fiscal year for the municipality according to the Municipal Government Act and be presented by May 1 each year. Go to www.canmore.ca for the full report.
The audited financials show the Town of Canmore relied upon $22.4 million in municipal property tax revenues, $15.8 million in user fees and sale of goods and to make up the majority of its $48 million in revenues collected in 2016. That is $1 million more than budgeted, Scott pointed out, and that is mostly due to higher than anticipated development levies being collected ($2 million versus a budgeted $540,000).
Expenses after the audit came out at $46.2 million – which is more than the $45.8 million budgeted. That being said, excess of revenues over expenses totalled $2 million for 2016, however, the surplus was $1.2 million after all final calculations are completed, said manager of financial services Katherine Van Kiempema.
Van Kiempema reminded council that public sector audit considerations are counted “differently” than what administration does when preparing its year end financials for determining the final surplus.
“What administration is trying to say is that is not really how much the surplus is,” she said. “It is just over $1.26 million.
“There are items that get counted differently when it comes to preparing audited financial statements.”
Canmore’s cash flow position, at the time of the audit, was pretty significant, noted Mayor John Borrowman. The audit shows the Town has $8.5 million in cash in the bank and $20.6 million in short-term investments. It also has $20.8 million in deferred revenues, which is made up primarily of Flood Recovery Erosion Control Program grants that have yet to be received totalling $15.5 million.
Canmore also has long-term debt on its books totalling $28.3 million, but that includes a $5.9 million loan for Canmore Community Housing Corporation for the Perpetually Affordable Housing rental project McArthur Place.
“Because CCHC is wholly owned by the municipality, their books are included (in the financial statements),” Van Kiempema said.
Canmore’s debt limit in 2016 is $70.9 million and its debt servicing limit is $11.8 million. While CCHC pays the debt payments on its loans annually, the remainder in 2016 for debt servicing was $2.8 million.
Reserve account balances were reported at $4.7 million for the operating reserve and $27.2 million in capital reserves, including the art trust fund, general capital ($14.2 million) and photo radar ($1.1 million).
Elected officials, chief administrative officer and designated officials, of which there are 13 employed at the Town of Canmore, had salary and benefits reported in the audited financials.
In summary: Mayor Borrowman earned $89,321 ($78,526 in salary and $10,795 in benefits; Sean Krausert earned $45,675 ($38,093 in salary and $7,582 in benefits and allowances); Joanna McCallum earned $47,675 ($40,093 in salary and $7,582 in benefits); Esmé Comfort earned $36,497 ($30,393 in salary and $6,104 in benefits); Vi Sandford earned $41,775 ($34,193 in salary and $7,582 in benefits); Rob Seeley earned $44,475 ($36,893 in salary $7,582 in benefits) and Ed Russell earned $44,275 ($36,693 in salary and $7,582 in benefits).
The CAO earned $233,712 in 2016 from $206,072 in salary and $27,640 in benefits. The 13 designated officers earned $1.47 million in salary and $218,843 in benefits and allowances.
