City of Armstrong finances positive

By Roger Knox - Vernon Morning Star Published: March 03, 2013 1:00 AM
The City of Armstrong’s finances are looking good.  Chief financial officer Terry Martens issued his 2012 budget variance report and status of reserves for council’s perusal. “We’re in good shape,” said Coun. Kelly Rowe, chairperson of the city’s finance committee who introduced Martens’ report. General revenue in 2012 was mainly on budget with actual revenue being 101 per cent of expected revenue, thanks in part to money coming in from recreation revenue and the attainable housing reserve. The general surplus in 2012 was $468,330 of which nearly $300,000 was planned for in the budget to deal with reduction in provincial grant funding in 2013. Armstrong’s water fund was also on budget with the exception that the water meter capital project was not completed and carried over into 2013. Water surplus for the year was $453,573. Sewer money was on budget, other than the sewer master plan update project was carried over into 2013. Because sewer treatment and lift station maintenance costs were lower than projected, the overall sewer surplus was $29,628. All 2012 capital projects, valued at $2.4 million, were finished other than the residential water meter project. City reserves dipped from $5.1 million to $4 million, mostly due to the purchase of the Heaton Place units. “Reserve levels at the end of 2012 are adequate for most sub-reserve categories,” wrote Martens.  “However, the building replacement and water sub-reserves are low for the anticipated long-term projects that they will fund, and will certainly require bolstering in the coming years.” The total accumulated surplus for Armstrong increased by $397,000 in 2012, but that surplus is not part of the city’s reserve funds. “The audited financial statements will be presented to council in the spring and will be subjected to formal approval,” said Martens.