The City of Red Deer must become less reliant on operating reserves in the upcoming years, according to the 2022 Annual Financial Report.
On Monday, city council accepted the 2022 financial statements and Annual Financial Report, as well as authorized the mayor and the chair of the Audit Committee to sign the 2022 financial statements on behalf of Council.
“(Monday’s) presentation of the 2022 annual financial statements enables us to share information with City Council and taxpayers about The City’s 2022 financial performance,” said Ray McIntosh, City of Red Deer chief financial officer
“Through this report, we describe some of the City’s major financial challenges and paint an overall picture of the City’s general economic position. This year’s audit went well. We have a clean financial report and opinion from our financial auditors.”
The report indicates that no changes to service levels, no increases to property taxes combined with increased costs during the past three years has culminated in the city relying heavily on operating reserves, specifically the Operating Reserve – Tax Supported (ORTS).
“While The ORTS is an area of concern, other indicators do provide a positive picture,” the report notes.
“Utility operations remain stable and well managed, the use of debt has leveled off, and the investments made to our assets are strong. Administration has more control over costs, which are managed well, and less control over revenues, which have not achieved our planned levels.”
The task before the city is to maintain what it is doing right and to improve upon our key reserve balances, the report adds.
“The city’s future budgets are moving away from a reliance on reserves as a funding source and plan to update the reserve policy to prop up reserve balances,” the report states.
“Our next two years will also see the city develop a Long Term Financial Plan and an overall values-based service level review.”
The full 2022 Annual Financial Report is available on the City of Red Deer’s website.
sean.mcintosh@reddeeradvocate.com
Like us on Facebook and follow us on Twitter
