Town Council

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Michael Bolton of BDO Dunwoody presented the final 2009 audit for the Town of Saugeen Shores at  Monday's Council meeting.

"We are later than usual in presenting the final audit because of the new accounting procedures required by the province and the General Canadian Auditing Standards set out by the Institute of Chartered Accountants," Bolton explained.  "All capital assets or inventory had to be accounted for this past year."

According to BDO, there were several capital projects that amounted to some $20million and deferred revenue dropped quite a bit.  In addition, long-term debt almost doubled from $9million to $17million because of the capital projects. 

Revenues of $28million were budgeted at the beginning of the year (2009) but, according to Bolton, the grants did not come in as forecast.

Total expenses were budgeted at approximately $17million but came in at $22million while the budged surplus was set at almost $17million and came in at just over $5million.

While he compared Saugeen Shores long term debt with other municipalities, Vice-Deputy Mayor, Doug Gowanlock, questioned the comparison. "Is it fair to compare a municipality that has just implemented a major sewer and water project  that has been included in its debit but that will be paid for by the benefitting people?"

Mayor Mike Smith said that "...it is really a snapshot in time and numbers can be misused in many ways."

Bolton said that the municipality has actually increased the value of the municipality by $5milllion this year although he also pointed out that Saugeen Shores carries the largest long term debt out the many municipalities looked at. "There are some concerns over the long term debt," said Bolton, "but overall the municipality is in good shape.  Reserves or equity has increased but, again, in comparison to its peers, Saugeen Shores does have more debt but it has also undertaken some very large capital projects."

"I think that significant long term debit and long term capital assets, such as sewers, means an increase in services to the people of the municipality," said Mayor Mike Smith.

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Thursday, November 25, 2010