Guelph-Eramosa councillors railed against the provincial government yet again last week during a presentation from the township’s financial auditor.
Several councillors took issue with the provincially-imposed financial accounting and reporting standards introduced in recent years, largely as part of the Public Sector Accounting Board (PSAB) implementation for municipalities.
“We went through all this to get something the public works guy could write out on the back of a napkin in five minutes,” Mayor Chris White said on June 6.
He was responding in particular to an assertion by Matthew Venne, of RLB Chartered Accountants and Business Advisors, the township’s financial auditor, that the township will have to spend $2.6-million annually just to maintain its current infrastructure.
“It’s a guesstimate at best,” White said of that figure.
He said the number seems to assume everything currently is in good condition, but in reality millions could be spent on new projects.
Venne said he understands White’s concern and he even agreed municipalities that have spent less on infrastructure over the years would have an artificially low number for required future capital spending. But Venne said the numbers do offer some comparability between municipalities.
White replied he is concerned the province will base funding dispersal on the information collected through PSAB requirements, which he fears will mean municipalities doing well will not get grants – while those that have mismanaged funds and assets will get them.
Councillor Doug Breen, who regularly laments many new provincial requirements that he feels are onerous, agreed with White.
2010 finances
Other than the changes mandated by the province, the mayor considered the 2010 financial statements report by Venne positive News for the township.
“I think we’re in pretty good shape overall,” White said.
Venne agreed, telling councillors, “There’s nothing here that has me worried.” Both he and White credited staff for their hard work throughout the year and during the audit process.
Venne said the township’s ratio of taxes receivable to total tax revenue – $1,457,164 to $4,127,988 – is lower than many other municipalities, some of which have a ratio as high as 50%.
The favourable local ratio is the combined result of a healthy local economy and of the fine job done by staff to collect taxes, Venne explained.
Overall, at the end of 2010, Guelph-Eramosa has over $83-million in tangible capital assets and an accumulated surplus of over $85-million.
Copies of the statements are available at the township office.
