Chatham-Kent council received word at its Monday meeting about the municipality’s financial position.
Gord Quinton, acting director of financial services, said the municipality had $128 million debt at the end of 2013, with $67 million of that from the PUC.
“It’s a lot of money,” Quinton said.
Quinton added Chatham-Kent’s credit rating improved to an A + rating this year, thanks to a “pay as you go” policy adopted in 2009 for existing infrastructure.
Quinton said the trend would see the municipal debt shrink.
“We’ll be down to $105 million in debt by 2015,” he said.
Quinton said Chatham-Kent had $1,031,700,000 in total assets, $217,300,000 in liabilities, $814,400,000 in accumulated surplus, which equals just over $1 billion in liabilities and equity.
Quinton said C-K’s accumulated surplus, which is C-K’s investment in assets and reserves less liabilities, was at about $700 million in 2009.
“We’re trending upwards,” he said.
Quinton pointed out a number of challenges moving forward, including infrastructure funding.
“We’ve made great strides … we’re meeting 70% of our requirements,” he said.
Quinton added: “There is more work to be done there.”
He said the non-residential tax base has dropped 2% in last 10 years as well.
Quinton said overall, Chatham-Kent will “remain healthy” moving forward.
Chatham Coun. Anne Gilbert said creating an audit committee divested council’s opportunity to speak in closed session about the auditing process.
“There are only five councillors on the committee,” Gilbert said. “I would like to speak with the auditors directly. I think it needs to be reinstated. It’s a question of getting information.”
Chatham Coun. Derek Robertson said speaking about the audit in open session is standard practice.
“I think we need to be cautious,” he said. “Talking about the audit in closed session lacks transparency.”
Council unanimously approved the audited financial statements, along with the final operations variance.
