Back to SearchIn an effort to increase transparency and accountability of City spending, the City of Prince Albert has initiated better financial reporting for City Council and residents, starting with a budget to actuals year-end report for 2022. This is a first in recent years for the City of Prince Albert.
For 2022, the City experienced a $3.4 million deficit compared to budgeted revenues, expenses, reserve allocations, and capital-related items. Unique circumstances primarily drove the deficit following the transition out of Covid-19.
"Revenues had not quite recovered to pre-covid years, and so we did not hit budgeted projections in areas like recreation and transit," said Briane Vance, Senior Accounting Manager for the City of Prince Albert. "We also experienced situations that called for emergency repairs in addition to considerable inflationary pressures that drove up costs on things like asphalt prices, power, electricity and insurance."
The City's fiscal stabilization fund will cover the deficit, which is intended to absorb these fluctuations. "These kinds of ebbs and flows are expected year-to-year during the life of a municipality," adds Vance. "In some years, we have no emergency situations and surpluses contribute to the fiscal stabilization fund."
The City's financial health continues to be in good condition. The City's Auditors provided an audit opinion of the City's financial status and, in 2022, did not identify any concerns in relation to the City's ability to continue to pay expenses and debts as they come due.
The City's Auditors have completed the 2022 audit of the City's investments, debts, and net income and have continued to issue a clean audit opinion regarding the City's financial reporting and financial health.
"Our ability to pay expenses and debts as they come due remains sound," said Vance. "Based on the 2022 Financial Statements, the City's current ratio is approximately 2:1, which means our current assets are able to satisfy our current obligations two times over as they come due. "
"Administration is committed to working on strategies to communicate financial information in an understandable and meaningful way, which has not been historically provided," said Sherry Person, City Manager.
Financial reporting can be complex and difficult to understand, and ensuring residents and Council understand the City's financial situation is a priority. Providing timely financial information assists in decision-making that supports the City's continued growth and remains fiscally responsible.
For more information, please see the Executive Committee Agenda for August 14.
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For media inquiries, please contact:
Sherry Person
City Manager
(306) 953-4396
Briane Vance
Senior Accounting Manager
(306) 953-4350
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