Council Approves 2017 Audited Consolidated Financial Statements for the City of Kenora
Today Council approves the 2017 Audited Consolidated Financial Statements. The City received an unqualified audit report and is financially stable.
The 2017 financial statements continue to reflect the healthy financial position currently enjoyed by the City of Kenora. The City continues to work to improve the current infrastructure deficit while maintaining an appropriate balance between services and property tax rates.
Highlights from the consolidated balance sheet include:
- Cash and temporary investments on hand as at December 31, 2017 totalled $37 million;
- Investment in government business enterprises totalled $9.9 million;
- The Kenora Citizens’ Prosperity Trust Fund balance was $32.8 million at the end of 2017 on the consolidated balance sheet. The Trust Fund in fact has $41 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 $30.2 million at the end of 2017.
- The City’s accumulated surplus totals $228.1 million, (see tangible capital assets discussion below)
The City is required to include tangible capital assets in its accumulated surplus total. Therefore, the City’s statements include 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. The City’s surplus includes the Tangible Capital Assets recorded at cost less accumulated amortization. At the end of 2017, the investment in capital assets included in the City’s surplus is $154.7 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 along with the Auditors report on August 15th 2018, both on the City’s website, 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.
Jonathon Ranger, Deputy Treasurer (807) 467-2010