Lake of Bays in a strong financial position
Lake of Bays Council was advised they were in a good financial position, in the July 9, 2024, meeting.
Lake of Bays Council was advised they were in a good financial position, in the July 9th meeting.
Drew Pahapill, of Pahapill and Associates, advised the Township was “free of misstatement” in his audit of the 2023 Consolidated Financial Statements.
In his analysis of the Township’s risks, “sizable areas and large transactions,” he gave his seal of approval for a “clean audit.”
Pahapill Associate, Rebecca MacDonald, also gave a breakdown of the Townships financial position, which includes assets of over $4 million in cash, $1.6 million in Tax Receivables, and over $643,000 in Accounts Receivables.
She added that the Township had over $1 million in unrestricted cash as of December 31st, compared to over $5 million the previous year.
MacDonald continued that Non-Financial Assets were $25 million, and $6.4 million were received in Property Taxes (up from $5.9 million in 2022), with a $350,000 increase in user fees.
Expenses were reported as over $11 million; however, MacDonald said the Township has $3.9 million in reserves, with a cash balance of $4 million. Therefore, they have cash to support reserves.
Pahapill summarized that overall, the Township “is in a very stable financial position,” with no debt other than payables, which is seen as a “timing matter.” He said, “The municipality is in a good position going forward.”
He explained that this means they have the flexibility to use cash or borrowing options as needed.
Mayor, Terry Glover, expressed happiness about having $25 million in assets, and inquired about whether there is a rating system for municipalities.
Pahapill advised that they look at things like “stable financial position” when working with municipalities. He said a key factor in this is assets and “a reasonable cash reserve position.”
He continued that some municipalities don’t have the cash to support reserves or “they can’t liquidate to fund reserves.” With the Township having no debt, they have options for larger projects where needed, such as the ability to borrow, use reserves, or increase taxes.
He added, “Lake of Bays is in a good position to make decisions…in a good position to have flexibility.”
Councillor, Rick Brooks, said, “This is a very warm and fuzzy approach… I hope you will be honest if we’re going wrong down the road. We want your honesty.”
Pahapill assured Council that they would address concerns as they arise.
