MOUNTAIN VIEW COUNTY - Council has been updated on the municipality’s economic and financial standing, including the impact of inflation and interest.
The review came during a recent regularly-scheduled council meeting, with Jennifer Gudgeon, the county's manager of finance and accounting, presenting the economic and financial scan.
The report is presented to council on an annual basis as part of the budget process, and includes high level financial information.
“Mountain View County is in a strong position to meeting all short-term financial commitments, with approximately $73 million in cash and investments of June 2024,” she said.
“The county also maintains a low debt level, which is expected to be largely repaid between 2025 and 2028. As of the end of 2023, the county was $48 million below its total debt limit.”
The county has established reserves to align with long-range plans that aims to ensure that adequate funding is in place to meet capital and operating obligations, she said.
“The expected opening reserve balance for 2025 is $66.5 million, based on the approved 2024 budget, which saw a reduction in reserves of $9.6 million,” she said. “Significant shortfalls exist in the 15 year forecast for the bridge and road reserve, equipment fleet reserve, and the facilities reserve which had funding deficits of $36 million, $3.9 million and $10.5 million respectively at the end of the last fiscal year.”
Regarding inflation and interest, the report stated that, “Lower prime rates will impact returns on short-term savings and increase the cost of acquiring new high-yield, long-term investments. However, the county is well positioned with $29 million in long-term bonds with maturities up to seven years, which will continue to generate returns above the reduced prime rate.”
Council accepted the economic and financial scan report as information. The complete report is available for viewing on the county’s website.
