Town shares 2017-2020 Financial Review
   
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Town shares 2017-2020 Financial Review

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Review highlights key financial information during the current term of Council

At their Sept. 27, 2021. Council Meeting, Devon Council was presented with a financial review of 2017-2020, highlighting the current financial state of the Town after the conclusion of their four-year term.

All information in the review was obtained from the Town’s audited financial statements.

Definitions

In an effort to make the financial information more accessible to all residents, definitions have been included for each category in the review.

Unrestricted Surplus

The Unrestricted Surplus refers to the funds available to meet the Town’s short-term operating needs and financial obligations.

Restricted Surplus

The Restricted Surplus is made up of both operating and capital reserves and is funding used by Council for current and future purposes.

Operating reserves

Operating reserves serve as a means for Council to mitigate increases in various operating expenses or revenue shortfall in the budgeting process. The operating reserve balance has seen a net increase of $6,436 from 2017-2020.

Capital Reserves

Capital reserves are used to fund capital assets that are either a replacement or new in nature. From 2018-2020, the balance in the capital reserves has averaged $7.5M over the three years. Without these capital reserves in place, Council would have had either borrow to fund additions/replacements or not proceed with their annual Capital Plan.

Equity in Tangible Capital Assets

Equity in tangible capital assets represents a significant resource managed by Council and is a key component in the delivery of many services and programs to Devon residents and businesses. From 2017-2020 the Town has invested $37.8M in capital assets with $29M being allocated to the Wastewater Treatment Plant replacement.

Accumulated Surplus

Accumulated surplus is key indicator from the audited financial statements and represents the financial resources a municipality has available to provide current and future services to its residents and businesses and meet its ongoing financial commitments. It consists of both cash and non‐cash components.

“Maintaining sound financial practices and decisions while maintaining our level of service to the community has been a priority of our Council for the past 4 years,” said Ray Ralph, Mayor for the Town of Devon. “As our term comes to a close, we believe that we have left the Town in a financially stable position for the next Council that will enable them to move the Town forward for any future development and opportunities.”

The Town’s Audited Financial Statements are available for residents to review each year at devon.ca/audited-financials.

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