The 2018 Draft Financial Statements for the City of Yorkton were presented to the regular meeting of Council Monday.
Council would unanimously support a motion to authorize the Director of Finance to sign the representation letter to the auditors; and further that the final 2018 Financial Statements be created and hereby approved.
Baker Tilly SK LLP has audited the financial position of the City of Yorkton as of December 31, 2018, Amber Matechuk, City Controller, with the City told Council Monday. She added their audit opinion was that the City’s financial statements, “present fairly, in all material respects, the City’s financial position and the results of its operations and changes for the year.”
However, “In conjunction with Canadian auditing standards, a final statement cannot be issued until the auditors receive approval from Council,” explained Matechuk.
Once Council approves the draft statements and the Director of Finance signs the representation letter, the auditors will issue the final financial statements for the city.
“In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the municipality as at December 31, 2018, and results of its operations and its consolidated cash flows for the year then ended in accordance with Canadian public sector accounting standards,” noted the circulated Independent auditor’s Report.
Management continues to be responsible for:
*System of Internal Controls
*Legislative Compliance
*Financial Statements and Financial Records
We are pleased that the Independent Auditor’s Report indicates compliance with Canadian Public Sector Accounting Standards.
In terms of specifics, Matechuk noted the City’s debt limit is $42,000,000.
Currently there are four major loans;
*Fire Hall $3,918,651
*Gallagher Centre $1,372,620
*Waterworks $4,023,000
*Dracup $5,356,470
The total debt of the loans is $14,670,741.
This leaves the city with approximately $27,300,000 of debt available, as at December 31, 2018, said Matechuk.
On the operations side the year-end preliminary numbers were reported to Council at the May 27, 2019 meeting
“Since then, some changes have occurred, primarily the notice that the YBID contribution to Dracup Pedestrian Bridge was included in operating revenue, when it should form part of the capital so it was removed,” offered Matechuk.
Other smaller balancing entries were also processed, resulting in a change to the operating surplus.
“The final 2018 operating surplus is $33,372, which has been transferred to reserves,” said Matechuk.
The so-called ‘Rainy Day’ reserve had $43,372 added to it from the adjusted year-end surplus.
Additional revenue was received from Sask Power to offset some lost surcharge revenue from 2017, and this bonus of $52,532.19 was added to the rainy day reserve as well, said Matechuk.
Councillor Randy Goulden said the document was interesting in that it lays out the responsibilities on Council and City Administration. As an example she pointed to the linear capital assets; sidewalks, roads, water lines, sewer and storm lines which total 743 kilometres which must be maintained.
The document also looks at the liabilities the City will be responsible for at some point.
As an example, the City of Yorkton currently operates a municipal landfill located at Sec13-26-04-W2M. The estimate of closure and post-closure care costs associated with historical landfill is based on a final closure surface area of 225,451 m2. For the purpose of estimating the annual post-closure care costs, management has estimated that this historical landfill will be closed in 2085 and the post-closure care would commence in 2086 which will continue for the next 25 years and terminate in the year 2111. At the discount rate of two per cent, the estimated closure cost in today's dollars would be $1,279,370.
