DIDSBURY - The overall financial health of the Town of Didsbury is good, according to a report released on Dec. 7 by the town.
Amanda Riley, the town's chief financial officer, said in the report that there are several indicators of good overall health of a municipality, including whether or not the municipality is approaching its debt or debt service limit, what is the remaining tangible capital assets (TCA) over original cost, and does the municipality have less than a 1:1 ratio of current assets to current liability.
"For 2017, the town was at 33 per cent of its debt limit and 32 per cent of its debt service limit," said Riley. "The town is significantly below the threshold that Alberta Municipal Affairs would consider for being at financial risk."
Regarding TCA over original cost, Riley said, "As of the last audited financial statements, the town's TCA are 65.31 per cent of the original cost. This indicator shows the town has been proactive in replacing and maintaining assets ahead of a complete failure of the asset."
Regarding ratio of current asset to current liability, Riley said, "As of the most recent audit the current ratio for Didsbury was 1.69:1, as calculated by Alberta Municipal Affairs. This shows the ability of the town to cover its short-term liabilities with its current assets."
Riley also stated that the town is required by the Municipal Government Act to complete an external financial statement audit.
"For each of the past two years the town received a clean audit opinion with no recommendations for improvement," she said. "An auditor annually presents the financial results and outcomes of the audit to council."
