By Jamie Rieger
Calvin Scott, a partner with Avail CPA, came bearing good news when he presented Bow Island town council with their consolidated financial statements for 2016 at their April 24 regular meeting.
The town’s financial assets for 2016 totalled $5,5383,841, up by just over $500,000 from the previous year and coupled with lower liabilities has the Town’s net financial assets of $1,900,987 up significantly from 2015. Scott indicated to council that sewer upgrades in 2015 led to higher accounts payable and accrued liabilities for that year.
While municipal taxes accounted for $1,680,183 of revenue for Bow Island, user fees and sales of goods (primarily from land sales), contributed $1.488 million.
As well, long-term debt, due to tax-supported debentures has come down from 2015.
Scott noted at the conclusion of his presentation that Bow Island is sitting in a good financial position.
“Presently, you are right in the area you would like to be in,” he said.
Mayor Gordon Reynolds went around the room asking councilors for comments or questions for Scott, but none had a response.
“I guess we are all happy here,” said Reynolds.
Bow Island town council passed their annual financial statements without any dispute or discussion at their April 24 meeting.
INDICATORS OF FINANCIAL CONDITION
Scott presented council with a set of bar graphs called a Key Performance Indicator to show the Town evaluations that could help when looking at areas for improvement. For instance, the assets (financial and nonfinancial) to liabilities graph shows Bow Island sitting at a 5.91 ratio. a ratio higher than one mans the community has accumulated surplus and has assets great than debt. A ratio of less than 1 means the debt is greater than the assets and a trend in this direction may not be sustainable.
Overall, Scott said Bow Island’s finances remain stable.
“Your debt charges to revenue have remained consistent since 2013,” said Scott. “I have pored over your finances and we have no issues. We couldn’t find anything of issue.”