Administrative Updates    Item #   8. a.            
Regular Council Meeting Agenda
Meeting Date: 05/13/2019  
Title: 2019 First Quarter Financial Statements - Pungur-Buick
Department: Corporate Services
This topic relates to all three of the City’s strategic vision elements contained in Council’s Strategic Plan

Request for Decision Summary

To publish quarterly financial information to allow the routine monitoring of financial activities.

Proposed Motion
That the 2019 first quarter financial statements be received as information.

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 March 31, 2019, as well as the results of its financial operations, changes in net debt, and changes in cash flows for the three months ended March 31, 2019. 

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 year-to-date budgets as accurate as the annual budget.

Year-to-date operations are generally within budget:
  • The City's net debt position increased since year-end, as liabilities increased more than financial assets.  $14.8 million of MSI capital grant funds were received in the first quarter of 2019 and recognized as deferred revenue to be used in a future period.  The City also received loan proceeds of $1.2 million to finance costs for the new RCMP facility and $2.2 million for new growth transportation project costs.
  • Operating revenues were slightly under budget due to a reduction in development permits, which is in line with the trend in development activity, in addition to lower than anticipated water sales.
  • Expenses were also slightly under budget, as general expenses came in lower than budget due to a shift in the timing of some Information Systems initiatives and the volume of water sold was lower than anticipated.  The impact of these budget variances was reduced by higher than planned snow removal expenses.
  • Capital related revenues came in over budget for the quarter as we funded $3.1 million of Protective Services facility costs and $747 thousand of RCMP facility costs with the MSI capital grant funds received.
The interim financial statements have been posted on the City website and a copy has been distributed to the City's management team.

Q1 2019 Financial Statements