Mapleton Township has received a clean report from the municipality’s auditors.
The township’s financial statements “present fairly, in all material respects, the consolidated financial position of the Corporation of the Township of Mapleton as at December 31, 2015 and the results of its operations and its cash flow for the year then ended in accordance with Canadian public sector accounting standards,” states a report presented by Matt Venne of RLB Chartered Accountants and Business Advisors at the July 12 council meeting.
The report’s consolidated statement of operations shows the township generated a surplus of $369,167 in 2015, compared to a deficit of $731,316 the previous year.
Venne praised the township’s staff for their assistance in the audit process.
“They are wonderful to work with,” he said.
Venne said the report indicates Mapleton has done a good job in collecting revenues owed. The township’s receivables as a percentage of total tax 2015 revenue were at less than 20 per cent during the audit period, compared to just under 30% on average for other municipal clients of RLB.
Mapleton’s receivables have been on a downward trend since 2013, when they hit a five-year peak of just under 30%, the report notes.
“That shows that a) people can pay and b) that your staff has good processes in place,” said Venne. However, he added, “It’s important to stay on top of your receivables.”
“As this goes to the provincial government is there any way (we) could put in yes, we are a well-managed municipality but we shouldn’t be penalized for that?” asked Mayor Neil Driscoll, in reference to the township being turned down for infrastructure grants in recent years.
Venne pointed out Mapleton has moved to increase spending on asset maintenance in recent years.
“Your actually spending a higher percentage of your tax revenue on capital (than other Wellington municipalities) assuming your tax rate levy is the same,” he pointed out.
Driscoll pointed out rural municipalities continue to struggle under a system that allots municipalities 65% of the province’s infrastructure, while they generate less than one per cent of the tax revenue.
“The problem is real,” said Driscoll.
Venne told council, “You are doing well compared to your average sister municipality in Wellington and Dufferin counties.”
However, he noted the township “will have to do a significant amount” of infrastructure upgrades in the future.
He cautioned against accumulating too much debt to deal with infrastructure issues. “I know (the province) has been telling you at the lower tier to borrow for a couple of years now, but you have been.”
“Their comment to us is, ‘you have the ability to tax,’” said Driscoll. “That’s why I get so frustrated.”
