Audited financial statements show city debt continues to decline

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The annual portrait of the city’s financial situation shows a financial situation that continues to improve.

Estevan City Council received the audited financial statements for the year ending December 31, 2020, at the Monday evening council meeting. Gisèle Bourgeois from the accounting firm MNP presented the document.

Financial data shows the city had a net debt – the total excess of liabilities over assets – of $ 18.3 million, up from $ 19.6 million at the end of 2019. The city s’ has been working to reduce its net debt for almost a decade.

Assets stood at $ 14.16 million, down from $ 14.80 million the previous year. Cash and temporary assets stood at $ 7.45 million at the end of 2020, compared to $ 6.12 million at the end of 2019. Restricted cash represented $ 5.64 million in the total. Treasury.

Bourgeois noted that taxes receivable fell from nearly $ 1.6 million to $ 2.22 million, and she said this was largely due to the impact of COVID-19.

“A lot of people don’t pay their taxes as quickly as they would in the past,” Bourgeois said.

As for the liabilities, the most important of the City remains the long-term debt, which amounted to $ 21.1 million at the end of 2020, against $ 23.70 million at the end of 2019.

Accounts payable increased $ 1.5 million to $ 2.2 million, due to various outstanding expenditures for capital projects.

Revenue last year was $ 33.23 million, up from $ 33.16 million the year before. Unconditional taxes and other income were $ 21.25 million, and fees and charges were just over $ 9.8 million. Bourgeois noted that there would be an expected reduction in money from fees and charges due to the closure of recreation facilities during the pandemic.

The city has received grants for the safe restart of COVID-19, as well as funds for the ongoing transition to coal.

Spending was $ 30.90 million, down from $ 31.69 million in 2019. Protective services ($ 6.37 million) and recreation and cultural services (6.36 million) accounted for the largest share of spending, followed by government services ($ 5.60 million) and transportation services ($ 5.42). million) and utilities ($ 5.30 million).

The city recorded a revenue over expenditure surplus of $ 2.32 million, and after provincial / federal capital grants of $ 3.47 million, that surplus grew to $ 5.80 million.

Mayor Roy Ludwig said he was happy to see that the city has been able to reduce its long-term debt and its net debt.

“We continue to move in the right direction, we continue to pay down the debt, we continue to do the necessary infrastructure work, and that is a very positive sign. It started a few boards ago and I’m very happy to see that the new board is on the same path, ”said Ludwig.

Bourgeois applauded the city for improving its finances in recent years.

© Copyright Estevan Mercury



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