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RFD- 3457 Administrative Updates   Item #   8. a.    
Regular Council Meeting Agenda
Meeting Date: 11/26/2018  
Title:    2018 Third Quarter Financial Statements - Pungur-Buick
Department: Corporate Services  
Strategic Vision Element: This topic relates to all three of the City’s strategic vision elements contained in Council’s Strategic Plan Related Goal: n/a

Information
Request for Decision Summary
To publish quarterly financial information to allow the routine monitoring of financial activities.

Proposed Motion
That the 2018 third quarter financial statements be received as information.

Background/Analysis
The financial statements have been prepared and presented by Administration, which is responsible for their accuracy, objectivity, and completeness.  Administration is available to provide Council with an overview and answer any questions about the financial statements.

Interim financial statements are consistent with annual statements except that they are condensed, unconsolidated, and unaudited.
  • Condensed financial statements do not include the complete note disclosure, but refer readers to the annual financial statements.
  • Unconsolidated financial statements do not include the financial results of the TransAlta Tri Leisure Centre or the Library.
  • Interim financial statements are not normally audited.
The financial statements represent the financial position of the City at September 30, 2018, as well as the results of its financial operations, changes in net financial assets, and changes in cash flows for the nine months ended September 30, 2018.

Quarterly financial statements include year-to-date budgets, which are helpful in comparing planned and actual results during the fiscal year.  Some budget variances are due to timing differences in the year-to-date budget.  Administration continues to work on making year-to-date budgets as accurate as the annual budget.

Year-to-date operations are generally within budget:
  • The City is in a net debt position as anticipated, having spent a large portion of the annual operating and capital budgets by the end of the third quarter.
  • Operating revenues and expenses are both under budget and the net result is a period surplus before capital items of approximately $980,000 better than expected. This result is the combination of both timing issues that will be resolved by year-end as well as operations that are expected to differ from budget.
  • Contracted services as well as materials and supplies are currently under budget due to transit maintenance and general Public Works operations. The transit variance of approximately $450,000 is expected to exist at year-end as a result of lower than planned fuel costs and the implementation of a new maintenance contract, however other items may be more in line with budget as they are weather dependent. Water sales and purchases are also projected to be less than budget at year end. 
  • Capital grants and capital asset acquisitions are both under budget at September 30, but are expected to be close to budget by December 31.
  • The City has signed fewer developer agreements than anticipated in 2018 and we expect developer levy revenue to be under budget as a result.
  • Contributed tangible capital assets will be recorded in the fourth quarter as inspections are completed and assets are turned over to the City, thus bringing the related revenue and acquisitions more in line with budgeted amounts.
Options/Alternatives
n/a
Consultation/Engagement
n/a
Implementation/Communication
The interim financial statements have been shared with the City's management team and the Open Books portal on the City's website has been updated to reflect the third quarter results.
Impacts
n/a
Attachments
2018 Third Quarter Financial Statements

City Council and Committee of the Whole agendas and minutes are posted on the City of Spruce Grove website for information purposes only. These agendas may be changed at the discretion of Council by the addition or deletion of items. Anyone reviewing the draft agenda should do so on the understanding that it is subject to change by Council.

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Audio from the most recent City Council and Committee of the Whole meetings are available via podcast on the City of Spruce Grove website.



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