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City releases 2018 Audited Financial Statements

Lacombe, Alberta (April 25, 2019) – The City of Lacombe released its 2018 Consolidated Financial Statements yesterday.

“Council is pleased to have another clean audit showing that the City of Lacombe is operating in a fiscally responsible manner,” said Mayor Grant Creasey. “We are pleased that an external organization has confirmed that our staff are doing great work in conscientiously managing public funds.”

“The annual audit process ensures transparency and sound financial management, two things that the citizens of Lacombe place a high value on,” said Chief Administrative Officer Matthew Goudy.

For 2018, the City had an operating surplus of about $318,000 derived from increased interest revenue, lower than expected debt payments and some minor variations in departments. The City also improved its financial position, which enabled investment of extra cash into Guaranteed Investment Certificates.

As of December 31, 2018, the City had used about 41 per cent of its statutory limit debt capacity and just under one quarter (24 per cent) of its debt-servicing capacity. The Municipal Government Act sets the debt capacity at 1.5 times the City’s revenue. As revenues grew, the total available debt capacity also increased by $1.8 million over 2017 levels.

Revenue
Capital revenues for 2018 were under budget due to delayed government transfers, as they follow the completion of capital projects. For example, the West Area Servicing Project, begun in 2018, will not be completed until 2019. Funds for this project will be received once work is complete.

Net municipal taxes were within $64,000 of expected amounts, or 0.4 per cent. Debt and interest payments were under budget by $241,000 because borrowing for the West Area Servicing Project was delayed.

Expenses
“The City’s 2018 operating expenses were largely in line with departmental budgeted amounts,” said Justin de Bresser, Senior Manager, Financial Services. “We were slightly under budget due to lower than expected debt repayments and reduced utility costs.”  

The 2018 City of Lacombe Consolidated Financial Statements are available for viewing and download at http://www.lacombe.ca/home/showdocument?id=11964.