The City of Airdrie is in good financial health, according to the 2012 annual financial audit, presented to council on April 15.
Total capital expenditures as of Dec. 31, 2012, were just under $43 million and included $20 million on engineering structures, $16.5 million on buildings, $2 million on machinery and equipment, almost $460,000 on vehicles and $3.6 million on land and land developments.
With more than $11 million spent, the Calgary water supply line is on budget and on track for completion in 2013. The 24th Street extension from Yankee Valley Boulevard to Sagewood Boulevard is scheduled for completion in 2014 is also on budget. The design phase is completed for the renovation on the Bert Church Theatre and the construction phase began this year.
“The City is a lean, financially responsible machine,” said Deputy Mayor Ron Chapman. “That’s why I’ve lived here since 1978.”
The opening balance in the City’s operating carry forward reserve was $884,846. As of Dec. 31, 2012, about $292,189 in carry forward projects remain in the reserve with all projects scheduled for completion in 2013. An additional $425,979 in carry forward projects have been added for the 2013 fiscal year end bringing the balance in the carry forward reserve to $718,168.
“These are projects we budgeted for in 2012 but are not finished yet and will move forward to 2013,” said Lucy Wiwcharuk, Airdrie’s director of corporate services. “Some of these projects include engineer studies, roof and floor repairs, training projects, software and lighting in City Hall that comes in at about $30,000.”
In 2012, the City’s net financial assets decreased to $18 million from $28.9 million.
“The statement of net assets shows a decrease of $10.8 million but still shows strength of the resources for the City of Airdrie, acquiring $42.8 million in new assets against a net revenue of $50.3 million as compared to last year’s acquisition of $29 million against a revenue of $54.3 million,” said Wiwcharuk.
However, tangible capital assets (non-financial assets that are not intended to generate income or be sold) increased $61.2 million to $532 million.
The City’s reserves hold $64.3 million with $40.6 million considered restricted reserves that can only be used for specific purposes. The general operating reserve is $9 million, a $1.9 million decrease from 2011.
Other revenue includes operating revenues such as the sale of recycled material, fire response fees and rebates as well as capital fund revenues such as developer paid capital improvements.
“Our long-term debt position is extremely strong, ” said Geoff Stephenson, Airdrie’s team leader of financial services. “We fall well within the provincial guidelines of the debt limit to allow for future growth.”
In 2012, the debt limit was $126.9 million and the City’s debt is $51.5 million.
PricewaterhouseCoopers recommended changes to four points of internal control in its Report to Management.
The changes include one involving payroll, one related to the finance departments control accounts, removing user accounts in a timely matter and properly documenting technology upgrades.
