Published: July 19, 2017
BY JENNIFER PARSONS
The Municipality of Red Lake has made their audited statements available to the public for 2016 after a leadership review of the document earlier this month.
On July 17 BDO Canada LLP’s Claudine Cordeiro made a presentation of the 2016 Financial Statements that shows the local government finished 2016 with an accumulated surplus of more than $42.24 million.
“That doesn’t mean you have money to spend. That means you have money invested in capital,” said Cordeiro noting there is currently about 39 million invested in capital.
The official balance sheet shows financial assets for the previous year to be at $9.2 million down from 2015 by about $875,000. Cordeiro said projects such as road upgrades, the arena roof and street lighting upgrades increased financial liabilities which when balanced shows a net debt of more than $14.9 million, a $900,000 increase over the previous year.
Treasurer Brian McQuarrie said after the meeting the Municipality’s deficit, which ran to more than $747,000, is attributed to property tax adjustments for large industrial property owners and a provision for taxes that will unlikely be collectable on residential or commercial properties.
“[Goldcorp] appealed their property taxes from 2013-2016 inclusive and were successful,” said McQuarrie in an interview on July 24 noting the Municipality was obligated to compensate the company $277,000 for those tax years.
An additional $500,000 was a provision for taxes that McQuarrie says will “unlikely” be collected from a tax sale later this year. With these two budget items this year’s spending report missed the projected surplus and resulted in a deficit he adds.
“We would’ve been at $30,000 surplus and in any form of government that is considered wonderful. We are doing all we can to mitigate the tax revenue losses.”
Copies of the 2016 Financial Statements are available from the Municipal office in Balmertown or can be found at www.redlake.ca.