The Town of Sundre’s auditor identified no major red flags following a review of last year’s financial statements.
Laura Daniels, partner of assurance with PricewaterhouseCoopers, presented council with some highlights from the recently completed 2017 audit during the May 28 meeting.
Overall, she reported a largely clean audit that did not identify any areas of serious concerns or mismanagement, and that many of their review procedures performed without exception.
Administrative staff had been forthcoming in facilitating the financial review, she said, extending her appreciation to chief administrative officer Linda Nelson as well as acting director of corporate services Chris Albert.
“They’ve been great to work with.”
In wrapping up her presentation, Daniels said she was professionally obligated to inquire whether any members of council or management were aware of any matters that might potentially impact the municipality’s financial well-being.
Mayor Terry Leslie, taking a brief moment to look left and right to see whether any of his council colleagues or administrative personnel wished to add anything, responded in the negative after no one raised any concerns.
The Round Up contacted Albert on May 29 to inquire about the municipality’s financial standing.
The Town of Sundre’s debt ceiling for 2017 stands at approximately $15 million, he said, adding about $4.4 million of that amount is tapped into, leaving wiggle room of more than $10 million in available funds for future projects.
“That puts us somewhere around the 29 per cent benchmark.”
Commenting on the average financial situation of other municipalities is difficult as there is a very wide range of debt loads throughout the province depending on what other places have been doing, he said.
“I do know that from a Municipal Affairs perspective, they don’t really start being concerned about a municipality’s debt load until they’re kind of at that 70-80 per cent mark.”
Once that 80 per cent or higher level is reached, Municipal Affairs starts asking more questions, and if the situation does not turn around provincial officials become much more likely to step in, he said.
Albert does not seem to think that’s something Sundre has to worry about any time soon.
“We’re actually in a really good place. We’ve got quite a bit of room.”
Even with plans in place to increase borrowing for capital projects in the coming years — upwards of roughly $6 million in additional debt within about four years, bringing the municipality closer to 65 per cent of its debt load — Sundre remains in a good position and continues to service its debentures, he said.
“There are regular payments that happen towards that debt.”
Among the projects included in the five-year capital plan are Main Avenue from 10th Street SW up to Sixth Street SW, which will be done in two phases over a couple of years, as well as some upgrades at the Town of Sundre wastewater treatment facility.
