Despite COVID restrictions such as facility closures, in 2021 Blind River saw a stable financial picture that will likely continue this year.
Council received a report at its virtual meeting Monday from KPMG auditor Tiffany Cecchetto about its financial performance in 2021.
Assets have increased overall since 2020. There were slight increases in both cash and taxes receivable.
There was a larger increase in accounts receivables due to a number of government grants that were outstanding at year-end. The largest increase is in the cash advances to related companies due to a partial reversal of the impairment of the North Shore Power Group after receiving a $4 million payment in early 2022.
“There is a slight increase in the overall liabilities. There was an increase in accounts payable due to the timing of payments made to suppliers and an increase in contractor holdbacks payable compared to 2020."
"Deferred revenue has increased due largely to the fact that the Ontario Community Infrastructure Fund (OCIF) funds received in 2021 were not all spent and were carried over to 2022,” treasurer Sue Dent said in an email to Elliot Lake today. “There was no new long-term debt taken on in 2021 and the decrease is due to principal repayments on existing loans.”
“The report saw an accumulated surplus of $4,411,252 and a decrease to the net financial debt of $3,555,010,” she added. “The decrease in tangible capital assets is due to the cost of amortization being higher than the cost of new assets purchased in 2021.”
Following is the Statement of Operations:
2021 revenues are up over the prior year.
The town used less provincial grant funds but more federal grant funds in 2021. Taxation revenue increased due in part to the increased tax rate.
Increases were also seen in user charges and other revenue as the town saw a significant increase in revenue from the sale of vacant land and donations to capital projects.
Expenses also increased over 2020. This was most noticeable in transportation services which saw higher than expected increases in road materials, fuel costs, contractor costs and maintenance costs.
Increases in protection of persons and property and planning and development are due to higher consulting/engineering expenses.
Blind River saw a net increase to the reserve and reserve funds in 2021 of $881,909.
In January 2022, the town was able to make a $4,000,000 payment against the Canada Mortgage and Housing Corporation (CMHC) debenture that is due in 2037.
“2021 was a good year,” Mayor Sally Hagman said. “We just have to forget about COVID.”
“It’s all very positive looking at these numbers,” Cecchetto said.