Clearview in good financial shape
Clearview’s finances are in good shape, its Auditor told Council at its last meeting where she presented the 2013 financial report.
Reserves, reserve funds and general surplus were up to $8.7 million by December 31, 2013, said Sue Bragg, partner at Gaviller and Company LLP Chartered Accountants.
This does not include $2 million, which Simcoe County will pay Clearview for landfills later this year.
Bragg said the big change in revenues came from government grants. Clearview budgeted $3.6 million in grants in 2013, but didn’t receive or use all of that money.
Due to delays in the Clearview-Wasaga Waste Water Project, Clearview spent only $400,000 of a $10 million grant from the Ontario Ministry of Agriculture, Food and Rural Affairs.
“It’s hard to set a budget on capital projects,” Bragg said.
The unspent grant affected other numbers including accumulated surplus, cash, capital revenue and expenses.
The municipality now has $18 million in cash, compared to $8 million last year, and capital revenue was down to $915,000, compared to the budgeted $26.5 million.
Last year, accumulated surplus rose to $89 million, compared to $86 million in 2012. This included more than $80 million invested in land, buildings, roads, equipment and water or sewer infrastructure.
2013 expenses remained stable since the previous year, totalling almost $17 million. The $24 million budgeted for expenses last year included $8.9 million for the waste water project.
Clearview’s $8.1 million debt is not of concern to the Ministry of Municipal Affairs and Housing, Bragg added.
“Your debts could be four times that amount… Much is related to water and sewer projects, so it’s necessary.”
Water and sewer billings increased by more than $60,000 compared to last year. This was due to recent increases in the water rate and due to the extra seven days at year end in the 2013 billing year compared to 2012.
Revenue rose slightly last year to $19 million compared to $18.2 million in 2012, and taxes receivable remained similar to last year at $3 million.
Accounts receivable rose due to recovered HST from the federal government. The HST receivable at the end of 2013 was $360,000 higher than at the end of 2012.
Accounts payable and accruals increased to $182,000 due to payroll-related accruals (amounts owing from the year before).
According to the Ministry, the Township’s additional borrowing capacity is between $27 million and $37 million, depending on the interest rate and amortization period. This would be in addition to the balance of long-term debt at the end of 2013, which was $8.1 million.
Bragg put her stamp of approval on the audited financial report on June 23.
