Despite the impact of COVID-19 – lost revenues, higher tax arrears, delayed capital projects – the 2020 Consolidated Financial Statement and audit for the Town of Innisfil concluded that “the town's financial position remains strong with an increase in net financial assets and accumulated surplus.”
The financial statement looked at not only the town's operating and capital assets and liabilities, but also the finances of the Innisfil Public Library Board, and the portion of the Bradford West Gwillimbury-Innisfil Police Services Board for which the town is responsible.
However, it excluded details of the arms-length Municipal Service Corporations – InnPower Utilities, InnServices and InnTerprises – except for equity results.
The Town of Innisfil saw an increase in its total financial assets from $327.9 million in 2019 to $332.7 million in 2020, and a decrease in its total financial liabilities (including obligatory reserves) from $82 million in 2019, to $80.33 million in 2020.
The accumulated surplus (financial and non-financial assets, including infrastructure) reached a high of $580.13 million, up $12 million from 2019 due to an increase in tangible capital assets and investment in the town’s subsidiaries.
But the news wasn’t all good.
While Innisfil did reduce its municipal debt, from $19.83 million in 2019 to $17.9 million in 2020 due to principal repayments for the Innisfil Recreation Complex, Town Hall, South Simcoe Police Station and Cookstown Library and Community centre; and saw an increase in revenues from Development Charges, it also saw a decline in other revenue streams.
Revenues from taxation, user charges, the OLG and Gateway Casino, licences and permits were all below budget.
Taxes were down just 0.38 percent, but user fees dropped by over 45 percent (reflecting COVID closures), licenses and permits were down 35 percent, and the revenues from the OLG, budgeted at $5 million for the year, came in at $1.39 million – a drop of 72.1 percent, due to the closure of the casino in Innisfil.
Losses were in part offset by reduced spending, especially on transportation, recreation and culture, and planning and development, and by an increase in grants received. Deferral of a number of capital projects also helped balance the town’s finances.
The statement concluded that “the Town has the resources to cover its debt obligations and that funds have been set aside for future sustainability.”
Council received the Consolidated Financial Statement on June 23.
“Great job,” said Coun. Kevin Eisses, praising staff for their work, and for keeping the municipality’s finances on an even keel despite the challenges, and a $13 million shortfall in revenues. “I think it will be one for the history books.”
