BOWDEN -- The Town of Bowden came within $23,000 of balancing its 2018 revenues and expenses, an auditor says.
Ryan Wachter, senior manager at BDO Canada LLP in Red Deer, presented the 2018 financial audit to Bowden council during its April 8 meeting.
Wachter said the town ran a deficit of $22,603 on revenues of $2,392618 and expenses totalling $2,781,409, once other factors, like government transfers for capital are factored in.
Wachter told the Albertan the key factor in this year's numbers was amortization (writing down the worth) of assets.
He agreed the deficit could easily be covered by the town's reserves, should the town decide to go that way.
Statements can vary wildly year by year. It just depends what that town's projects and priorities are in any given year.
Wachter noted in 2017, the town racked up a surplus of $194,354.
"It really varies," he said. "It varies on what projects are on the go and what has to be done, right? Because you might be in a saving period — you're saving up for a big project -- so yeah, you're going to need some revenue over expenses because that's what's occurring."
During his presentation to council, Wachter said the numbers were the result of a mixture of factors.
"There were just a lot of little things here and there," he said.
For example, the town budgeted to spend $749,322 on water and wastewater operations, but by the end of the year, that figure had ballooned to $859,824.
"The largest contributing factors? Well, there was a water (main) break. That cost a big chunk of money; not only a big bunch of water pumping through there but there were repairs, maintenance and everything to get everything fixed up there," he said.
On the other hand, the town budgeted $793,516 for transportation services but ended up only spending $670,091.
That category encompasses anything to do with public works; including money spent on roads, water, sewer, public works wages, repairs to vehicles and equipment and amortization of those things, gas and oil, as well as travel for all departments.
"It wasn't like one big thing and then, 'oh, this is what's causing this difference, like it was in the water and wastewater there,'" Wachter said.
"The two almost offset between the transportation and the wastewater. One was a little over, one was under. But those actually maintain pretty close."
On the other side of the ledger, the town budgeted to receive $54,079 from penalties and costs on taxes and utilities. It received $70,634.
"A little slower (on the) payments, causing a little bit of a penalty and commitments on to the town," Wachter said.
"A tighter economy," Coun. Paul Webb replied.
Wachter said the town is well within its debt limit of just under $3.6 million, prescribed by the province.
"You've taken out $590,000, so you're well within your debt limits. You've got $3 million in excess," he said. "It always is a tool. I'm not saying anything about it, I'm just saying you're within your debt limits."
