Town of Perth pleased with financial picture
The town of Perth’s quarterly financial statements, show the town is in a good financial position as of the end of September 2019.
“We’ll close the year out on a surplus but I haven’t predicted what that will be yet,” Treasurer Brian Burns told Lake 88.
As of the end of September, the town is showing cash and short term deposits of more than $18 million.
“Cash and short term deposits were positively impacted by property taxes being 100 percent due by the end of September and the FCM (Federation of Canadian Municipalities) loan related to the SAGR project for $4,460,870 received in June,” wrote Burns in his report to committee.
Some of the expected budget variances that Burns highlighted include: the Court Security Grant confirmed at $62,000 higher than budgeted, and the OMPF grant confirmed at $12,000 less than budgeted; investment income at $170,000 more than budget by year end, thanks to higher than expected interest on the town’s GIC. Salary and benefits are expected to hit $133,000 over budget, due to errors in budget preparation, while debt charges are expected to be $123,000 less than budget because the SAGR loan was drawn down later than expected.
“We’re in a good financial position,” said Deputy Mayor Ed McPherson, “What I want council to understand is where we need to put money aside for the next 11 years in order to meet our asset management plans.”
Provincial regulations require every municipality to have asset management plans that include a full Inventory of assets and current levels of service and the costs associated with maintaining levels of service mapped out, by 2021. The regulation then requires municipalities to have their proposed levels of service, asset life-cycle management and a financial strategy for the replacement and maintenance of assets complete by 2024.
“We’ve got most of the money we have in the bank already allocated to different projects over the next 11 years and we have to understand where our money’s going,” said McPherson, adding that the financial outlook will make it more difficult for Councillors to approve out of budget expenditure for pet projects in the future.
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