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During the August 12th meeting of Weyburn City Council, a draft of the 2023 Audited Financial Statement was presented by Director of Finance, Laura Missal. The report has now been officially posted on the City of Weyburn's website.
"Overall, the City was in a good position reporting a deficit above budget of $285,000," she shared. "The City budgets on a cash/actual basis so the deficit budget is balanced thru internal transfers, loan repayment, amortization, and capital purchases, which is shown in the notes to the financial statements."
Missal noted that many projects were completed in 2023, including the rebuild of 16th Street, the reconstruction of Lift Station 3, as well as upgrades at the Water Treatment Plant and water main replacements.
"For the year ending December 31st, 2023, the City was required to adopt a new accounting standard, PS 3280 Asset Retirement Obligations. The City applied the new accounting standard for the Landfill closure cost which increased the landfill liability by $2.6 million and resulted in an unbudgeted amortization expense of $2.4 million," she explained.
She added revenues overall were reported above-budget due to higher investment returns and the recognition of grant funding that was deferred in 2022.
Also during the August meeting of City Council, Weyburn's Mayor Marcel Roy also commented on the City's finances.
"We're one of the few cities that actually borrows money to make sure that we're running our City," Roy shared. "We've still had some money that we've been able to use, and our reserves are going down, but that is 'taxes in taxes out', that's how we run. And if we happen to make it up, that's what we're doing and we just simply don't hold reserves and raise taxes for projects. That's not the way it's supposed to be done. We need taxes in, taxes out."
He said if the City needs to borrow money, it can borrow money, as is the case with the construction of the Weyburn Credit Union Spark Centre.
"That was almost free money because that was only like one and a half percent interest," noted Roy. "So we were able to get stuff accomplished. But to build that Spark Centre now, I would estimate it would be at least another 40 to 50 percent more than what it is. So it works well, and it was attached to the school and it was good opportunities and everything worked well on all that."
Highlights included a Statement of Financial Positions: Cash decreased by $1.87 million. Cash decreased due to funding utility and infrastructure projects; Investments increased by $500,000. GIC investments were reinvested in Portfolio investments, which had higher returns; Taxes Receivable increased by $100,000; other Accounts Receivable increased by $160,000.
Accounts Payable & Other Liabilities decreased by $1.15 million, prior year had large payables at year end relating to utility projects; Long-Term Debt loan on CUSC; Deferred Revenue decreased by $288,000 due to 2022 CCBF funding classified as deferred until a project is approved. Projects have now been approved so the revenue is not deferred in 2023 and is recognized as revenue; Asset Retirement Obligation increased by $2.64 million due to the new accounting obligation to record the full amount for the landfill closure as a liability.
Tangible Capital Assets for Major projects were Lift Station 3 refurbishment, Water Treatment Plant upgrades, and the new Ice Plant Chiller at the Arenas. Fleet purchases were the Crack sealer, Infrared asphalt reclaimer, and a wide-area mower. New flag poles were installed at Memorial Park. Overall Tangible Capital Assets decreased due to the amortization of the Landfill liability for the asset retirement obligation of $2.45 million.
The City of Weyburn’s 2023 audit was recently completed by Grant Thornton.
Read the highlights of the statement in the August 12th City Council Agenda, found HERE on pages 37 to 40.
Hear Missal's explanation of the audited financial statement in the video of the meeting HERE (beginning at the four-minute mark) and read the full report on the City's website HERE.