TAMRMS#: B06
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Preliminary Year End Recommendation for Surplus
Presented by: Brenda Barclay, Manager of Financial Operations & Reporting
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RECOMMENDATION(S)
recommendation
That the February 26, 2018 agenda report titled “Preliminary Year End Recommendation for Surplus” be received as information.
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PURPOSE OF REPORT
The purpose of this report is to bring forward the City’s preliminary year end position and provide recommendations for distribution of the operating surplus. This report will also outline the process to complete the final year end adjustments and reserve transfers.
COUNCIL DIRECTION
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BACKGROUND AND DISCUSSION
Administration is currently in the process of finalizing the City’s financial statements for 2017. The final audited 2017 financial statements will be forwarded to Council for review and approval on April 16, 2018 with a complete explanation of the 2017 operations and variances upon completion of the audit by the Council appointed auditor, KPMG.
Based on our preliminary review, yet subject to audit, Administration is reporting a municipal operating surplus of $4.1 million which is a 2.60% variance from the approved budget of $157 million. The City’s utility operation saw a reduction in water and wastewater revenues due to wet weather during the year. This created a variance of $1.6 million less being transferred to reserves than the budgeted amount of $11.8 million.
A detailed variance analysis of the City’s municipal and utility operations is provided in the 4th Quarter Report provided in todays agenda package.
Over the next several weeks, there will be some adjusting entries that may impact the final operating position. These adjustments will be finalized as accounting cut-off dates are realized and further direction regarding various issues is received from the Auditors.
Surplus Recommendations
As per Council Policy C-FS-05, 8.c - Budget and Taxation Guiding Principles:
“One Time Revenues, Surpluse...
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