Audited 2017 statements show revenue outpaced expenses by $7.4 million and the accumulated surplus stood at approximately $94.1 million at year-end. (Trail Times file photo)

Audited 2017 statements show revenue outpaced expenses by $7.4 million and the accumulated surplus stood at approximately $94.1 million at year-end. (Trail Times file photo)

Trail in good financial health

Council reviewed 2017’s audited financial statements on April 23

A snapshot of Trail’s financial picture shows the city is still looking good in the books.

Audited 2017 statements show revenue outpaced expenses by $7.4 million and the accumulated surplus stood at approximately $94.1 million at year-end.

“The city’s overall financial position remains strong,” says Chief Administrative Officer David Perehudoff.

“The ability to continue to manage within the approved annual operating budget and generate surpluses each year has contributed to the city’s positive financial position,” he explained. “In addition, the city has been able to deliver the major capital projects within the approved funding levels and this also has a positive impact on the financial results and overall financial position of the city at this time.”

Ambitious capital projects council has undertaken – such as the Riverfront Centre and the soon-to-break-ground All Wheel Park – have, for the most part, been funded by long-term debt, capital revenue or internal reserves.

“As far as the 2017 Audited Financial Statements are concerned, the incurrence of long-term debt increased the city’s net liability position but at the end of 2017, the city also retained consolidated cash balances of $11.4 million,” Perehudoff clarified. “The annual debt payment made on the long-term debt now forms part of the annual operating budget and the annual debt payments best match the annual use of each facility or structure to the tax levy required to pay down the debt,” he added.

“This ensures that costs are distributed equitably to the taxpayer and user over the life cycle of the asset.”

Perehudoff says all other financial indicators are favorable.

“The city is fortunate that it has completed these significant legacy projects and is now insulated from further cost increases or other issues that can result as part of planning, design and tendering,” he noted.

“This effectively protects the city’s financial position going forward given that the next five years will likely see the capital program “normalize” and be funded directly. In addition, annual results from operations also remain positive with small surpluses being recorded in all three of the operating funds for 2017.”

Council members reviewed 2017’s audited statements during the April 23 governance meeting.

The group accepted and approved the document as presented by a representative of Grant Thornton LLP, and directed staff to bring forth and make public the city’s annual report before June 30.