Positive audit anticipated in Armstrong

Financially speaking, the City of Armstrong is a sound corporation.

Financially speaking, the City of Armstrong is a sound corporation.

Chief financial officer Terry Martens presented Armstrong’s finance and administration committee with the 2011 financial results.

“Our audit is winding down and we anticipate a clean bill of health,” said Coun. John Trainor, chairperson of the finance committee.

The city’s general, water and sewer funds will all carry surpluses into 2012.

There was a $155,000 surplus in the general fund with revenues in 2011 on target. Expenses were at 93.1 per cent of the budget.

Not counting grants and transfers from reserves, water revenue was on course, and a surplus of slightly more than $42,000 was obtained.

Sewer revenue was on target at just shy of 96 per cent, but expenses were under budget. A surplus of more than $181,000 will be carried forward to this year.

In his report to council, Martens explained the city has three statutory reserve funds that all saw activity in 2011.

The municipal reserve balance increased from $2.7 million at the beginning of the year to $3.6 million.

“This reserve is broken down into 11 different sub-reserves, each for a specific purpose,” wrote Martens.

The capital reserve increased from $1,092,876 to $1,127,521. It decreased by just more than a $1 million on Jan. 3, 2012 to fund the completed Heaton Place real estate deal.

The special reserve increased from $391,000 to $396,000, thanks to interest.

“These are very good results from what could have been a difficult 2011,” said Trainor.