Council Approves 2016 Audited Consolidated Financial Statements for the City of Kenora

Today, Council approved the 2016 Audited Consolidated Financial Statements. The City received a clean audit report and is financially stable.

The 2016 financial statements continue to reflect the healthy financial position currently enjoyed by the City of Kenora. The City continues to work to recover from the economic impacts that have affected us so significantly over the past couple years and has taken steps towards addressing the current infrastructure deficit.

Highlights from the consolidated balance sheet include:

  • Cash and temporary investments on hand as at December 31, 2016 totalled $35.1 million;
  • Investment in government business enterprises totalled $9.8 million;
  • The Kenora Citizens’ Prosperity Trust Fund balance was $33.4 million at the end of 2016 on the consolidated balance sheet. The Trust Fund in fact has $41.6 million in investments. The difference arises because the City issued debentures to the Trust Fund to finance seven capital projects. The Canadian generally accepted accounting principles dictate that the Trust Fund be consolidated in the City of Kenora’s financial statements. As a result the investment in the Trust Fund and the corresponding debenture debt in the City are eliminated on consolidation. The debenture balance at year end is $8.2 million.
  • This Trust Fund was created in 2008 to safeguard the net proceeds from the sale of the KMTS Entities. The intent was to ensure there would be no impact to property taxes as a result of this sale. In order to offset lost net revenues as a result of the sale of the KMTS Entities, the City requires an annual return of $1.1 million in income from the Trust Fund. Any erosion of the balance of the Trust Fund will result in an additional burden on City taxpayers.
  • The balance of the City’s reserves and reserve funds was $30.1 million at the end of 2016.
  • The City’s accumulated surplus totals $226.7 million, (see tangible capital assets discussion below)

There was a significant change to the City’s financial statements in 2009. As of 2009, municipalities were required to implement tangible capital assets. As a result, the City’s statements now reflect assets never before included – things like roads, bridges, water and wastewater networks, and City facilities and equipment to name just a few. The offsetting net investment in these assets is shown as a surplus on the City’s balance sheet.

As a result of the Tangible Capital Asset implementation, the City’s surplus now includes the Tangible Capital Assets recorded at cost less accumulated amortization. At the end of 2016 the investment in capital assets included in the City’s surplus is $152.6 million.

The City is also pleased to present the consolidated audited financial statements as part of its Annual Report. This report will be available to the public for viewing, both on the City’s website (Finances and Budgets), as well as at the front desk at City Hall and the Library. This report has been developed to provide users with some additional information about the City in conjunction with the consolidated audited financial statements.

2016 Annual Report and Financial Statements Media Release