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RFD- 3392 Administrative Updates   Item #   8. a.    
Regular Council Meeting Agenda
Meeting Date: 09/10/2018  
Title:    2018 Second 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 second 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 June 30, 2018, as well as the results of its financial operations, changes in net financial assets, and changes in cash flows for the six months ended June 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 the accuracy of the year-to-date budgets as good as the annual budget.

Year-to-date operations are generally within budget:
  • The City moved from a net debt to a net financial asset position at the end of June, primarily the result of property taxes received / receivable.
  • Operating revenues came in $1.6 million under budget, the result of  combination of factors.  There was a delay in the receipt and recognition of some sponsorship revenue.  Photo enforcement revenue came in lower than anticipated, however, these revenues are unpredictable in nature, as they are dependent on the number of infractions.  As well, the annual budget for water sales was allocated evenly throughout the year when actual water sales are highest in the summer months.
  • Operating expenses were under budget by a comparable amount, resulting in surplus before capital items coming in only slightly under plan.  Photo enforcement expenses followed the same trend as revenues and came in lower than anticipated.  Contracted expenses were down as invoicing for roads and parks work, as well as transit had not been processed by the end of June.  In addition, transit costs came in under budget as a result of lower than planned fuel costs and a better understanding of operational costs.
  • Capital grants, specifically Federal Gas Tax, and developer contributions are currently under budget due to delayed invoicing for road rehab and other roads work, which generally gets processed in Q3/Q4.
Options/Alternatives
n/a
Consultation/Engagement
n/a
Implementation/Communication
The interim financial statements have been shared with the City's management team.  The Open Books portal on the City's website will be updated to reflect the second quarter results.
Impacts
n/a
Attachments
Q2-2018 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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