City on track for long-term financial health

City of Kawartha Lakes on track for long-term financial sustainability

Kawartha Lakes – At a Special Council meeting on June 12, Council was assured of the long-term financial health of the municipality by finance staff. In addition to the 2017 year-end report from City Treasurer which included a $1.5 million surplus, Adam Found, Manager of Corporate Assets, provided an update on the 10-Year Financial Plan.

“I’m pleased that we have seen encouraging results in just the first year of the plan. If we stick to the plan, we’ll see tax increases go down while also being able to build and shape the community for the better,” commented Mayor Andy Letham. “We’re looking after our roads, adding new recreational facilities, attracting new business and enhancing our appeal to newcomers. We’re investing back into reserves and using smart financing. This is the turnaround Council has been aiming to achieve.”

Council adopted the City’s first long-term financial plan in July 2017. The plan takes into account the funds needed to maintain $3.2 billion of assets and deliver over 200 services at the levels established by Council or legislation. The plan allows for stable and declining tax and utility rate increases between now and 2027.

One year into the plan, the City is ahead of projections. The plan had originally forecasted a tax increase of 4.5% for 2018 while the 2018 budget delivered 3.25%. Water and Wastewater utility rate increases, averaging 3% for 2018, were also below the 4% originally forecasted.

Adam Found explained that the 10-Year Financial Plan is a living document, covering a rolling 10-year span that is reviewed annually and providing a guiding framework for budget development. It allows for short-term decisions to be made with consideration for the City’s long-term financial health.

Council also began the 2019 Budget process by forwarding a short list of items to be considered by the new Council during budget deliberations. Items focused around roads and winter control levels of service and options for enhancement. Staff reports on these items will be provided in the coming months. Deliberations usually take place in December, but due to a new Council being elected in October, budget deliberation will take place in the first quarter of 2019 to allow the new Council time to familiarize themselves with the budget before making any decisions.

View Mayor Letham’s video comment on the City’s 10-Year Financial Plan.

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