$1,308,356 to be transferred to reserves
By Spencer Seymour, Local Journalism Initiative Reporter
Director of Financial Services / Treasurer Kim Grogan reported to Thames Centre Council during the June 10 meeting that, following adjustments coming out of the annual audit, the total surplus for the municipality in 2019 was $1,308,356.
It was recommended by staff, and so moved by Council, that the surplus be allocated to reserves as follows:
• $676,356 to Tax Stabilization Reserve
• $280,127 to Transportation Capital Reserve
• $176,886 to Community Services Capital Reserve
• $77,389 to Fleet Capital Reserve
• $58,887 to Fire Capital Reserve
• $38,711 to Cemetery Capital Reserve
“Thank you to staff and appreciate the effort that they’ve made in 2019 to give us a $1.3 million surplus. It really goes to show that they are keeping an eye on expenses and they are reducing those expenses,” said Councillor Chris Patterson.
Reflecting the above allocations, Grogan reported that the total balance in reserves and reserve funds at December 31, 2019 is $12,619,507. However, significant utilization of the reserves (totaling $8,928,117) is expected to take place in 2020 as the result of approved 2020 operating and capital budgets.
COVID-19 Financial Impact
Grogan also provided a report to Council that the updated financial impact to Thames Centre as the result of COVID-19 is a deficit of $27,211, relating to the period of March 16 to May 31.
The impact of community services lost revenues, plus the cost of refunds issued, was $93,662 when comparing the 77-day period to the same time frame in 2019. A total of $31,751 in revenue was also calculated to be lost due to the waiving of penalties and interest on property taxes, water/wastewater billings, and other general receivables, while $11,080 was lost due to the waiving of lease/rent during the period.
The loss of revenue was partially offset by reduced costs. Layoffs and leave wages accounted for savings of $52,196, reduction in municipal facilities utility billings saved $51,682, and $10,491 was realized in benefit premium savings. Additional costs of $5,087 were incurred by Thames Centre relating to PPE, cleaning products and related charges.