2015 Draft Audit presented to Council by BDO
by Sandy Lindsay
June 28, 2016
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Mike Bolton of BDO Dunwoody presented the draft audit for 2015 to Saugeen Shores Council at Monday night's meeting on June 27th.
While the town appears to be doing well financially, Bolton pointed out that there are areas of some concern.
For the most part, the population has remain constant since 2011 at approximately 12,661. In 2011 the net municipal levy per capita was $729 and, in 2015, it was $925 per capita a growth of 7.95 per cent.
Taxation in 2011 was 32 per cent of the total revenue, fees and user charges made up 45 per cent and grants 13 per cent. In 2015 however, 44 per cent came from taxation, 33 per cent from fees and user charges and only 8 per cent from grants.
The result of the drop in grant revenue has resulted in increased taxes.
According to Bolton, reserves have also remain fairly constant (2011 - $17M and 2015 - $18M) which means that not a lot has been added to reserves for the replacement of tangible capital assets such as infrastructure, bridges, roads, sewers, etc.
He also pointed out however, that while the audit had uncovered no significant risks, capital assets are not being as quickly as they are wearing. "Over the past few years, that may not have been a concern but in the future, if capital assets are not replaced it may become a concern as things are wearing out."
Deputy Mayor Luke Charbonneau asked if long-term debts could be renegotiated given the low interest rates today. The debts come due in 2019 but the possibility of renegotiating is possible, said Sue Dent.
Eighty-nine per cent (89%) of the town's revenue comes from residential/farm taxation.
Total expenses for 2015 were $26.6M and in 2011, $23.3M or a 3.3 per cent increase, which has been constant over the last five years.
"With the decrease in grant dollars the 3.3 per cent increase in
expenses has to be raised from somewhere to meet expenses," said
Bolton, "and that's from the tax levy."To
read the entire 'draft' audit ...
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Tuesday, June 28, 2016