Lloydminster City Council has accepted and approved its consolidated financial statements for 2020.
The document which was prepared by local Chartered Professional Accountants WLS Wilkinson Livingston Stevens LLP and was presented to the Board on Monday April 26th.
On the bright side, the report shows an increase in financial assets of around $ 13.8 million with liabilities of nearly $ 3 million. This results in an increase in net financial assets of approximately $ 11 million.
The City has a surplus of $ 9.9 million for the year, more than double what was budgeted. Municipal taxes are slightly down from last year and user fees have shown a steep drop from what was budgeted.
The City would be in the red with the exception of grants received from the provincial governments of Alberta and Saskatchewan. Given the challenges of the past year, Mayor Gerald Aalbers is grateful for the dollar grants.
“The financial report we just finished receiving for 2020 essentially showed a positive balance sheet due to the resilience money provided by the two provinces. I really want to pay tribute to them and thank them for that, otherwise we would have had a deficit of several hundred thousand dollars. “
Without the help of the provincial governments, the City would have had a deficit of over $ 790,000. However, even though the City benefited from a surplus of $ 1.8 million in operating revenue, funding for capital projects amounted to approximately $ 8 million and the overall surplus over what was budgeted is $ 9.9 million. The mayor is referring to the $ 1.8 million as a resilience fund that they will keep in reserve to see where 2021 takes the city.
In contrast, Mayor Aalbers admitted there were slack periods ahead.
“It’s going to be harder and leaner over the next couple of years. We have seen this direction from Saskatchewan. We receive a portion, or 0.75% of 1% of the PST allocated to municipal sharing.
On the Alberta side, with the case of the Alberta Sustainability Funding Initiative, Mayor Aalbers is delighted with an increase.
“They gave us a 25% increase for this year, knowing that it will decrease by 50% the next two years. So we’re going to try to try to stretch the infrastructure dollars. “
The mayor said a revised budget will be presented in May when the mileage rate is set.
The 2020 audited consolidated financial statements are available online on the City’s website.