Financial reports show 'healthy' city coffers

The final financial statements for 2009 show the city in what chief financial officer Dean Screpnek called "good fiscal health."

The 2009 year-end financials were presented to the city's finance and audit committee on Monday night.

"A lot of hard work and dedication has gone into the report you are seeing tonight," said Screpnek. "It's been an especially challenging year for municipalities, not only in Alberta but across Canada."

From a revenue standpoint, property taxes made up 53 per cent, or $66.7 million, of dollars coming into city coffers. Sales and user fees were right behind at $37.2 million, totalling 30 per cent of revenue. Screpnek said the totals were on par with previous years, adding that it was not unusual for property taxes to make up a large part of municipal revenue.

"It's typical in most municipalities in Alberta," he said. "It makes sense when you think about the services we provide."

The city's reserves rose $3.4 million to reach $38 million at the end of 2009. Screpnek explained reserves are key to maintaining the city's financial stability and will continue to be funded to provide that security.

"It's extremely critical from my perspective," said Screpnek. "Otherwise, we would see massive spikes and ebbs in capital spending. It helps to streamline property tax."

This year's financial statements followed new accounting guidelines that now require municipalities to report all 'tangible' capital assets, such as roads, buildings and other municipal-owned property.

Audit in camera

The financial statements were audited by KPMG, however those results were not released to the public. The city cited sections of the Freedom of Information and Protection of Privacy Act, including disclosure harmful to economic and other interests of a public body.

"I don't understand why we need to go in camera," said Mayor Nolan Crouse. "It just shocks me that the audit findings are not public documents."

The committee later agreed by a majority to review the audit in private, with Coun. Roger Lemieux wanting to stay in public.

Several councillors later said there was nothing in the auditor's report that could cause trouble for the city. Overall, they said both the financial statements and the auditor's report were fine and commended the financial department for completing the report well ahead of the scheduled provincial date of June 25.

"It's the first time in my five years that we are on schedule," said Crouse. "There were no surprises whatsoever."

City council will receive both the complete financial statement and audit for approval later this month.