Town of Mount Royal ended its 2012 fiscal year with a budget surplus of $6,073,596. Here are the highlights.
Operating revenues: $81,962,445
Operating expenses: ($77,397,804)
Amortization of capital assets: $4,060,210
Repayment of long term debt: ($5,135,900)
Operating surplus for the year for tax purposes: $6,073,596
This surplus is largely attributable to additional revenues from taxation of new housing units, real estate transfer taxes, water billing, interest and government transfers.
Another significant factor that contributed to this positive result is operating expenditures that were less than forecast. The main differences explaining this are:
In addition, in 2012, the municipal administration invested $10,555,457 in the Town’s infrastructures compared to $6,526,333 in 2011. The main projects carried out in 2012 included: expansion and renovation of the municipal library, reconstruction, repair and resurfacing of several streets, reconstruction of sidewalks, rehabilitation of sewer pipes and drinking water lines, replacement of street lamps, and replacement of equipment and heavy vehicles.
As at December 31, 2012, financial reserves and earmarked funds totalled $16,272,363. The unappropriated portion of the accumulated surplus was $6,259,969 while the appropriated portion was $10,012,394. Our accumulated surpluses and financial reserves will enable us to deal with future contingencies and fund large-scale projects.
Lastly, the long-term debt at December 31, 2012, totalled $23,162,100. Investments to be funded at year-end totalled $6,774,795. Of this amount, a recovery of $931,548 is anticipated in the form of a grant. Also, the unused portion of contracted long-term debt equalled $1,705. All these elements bring the Town’s total net long-term indebtedness to $29,003,642 as at December 31, 2012. This debt load corresponds to 0.50% of the standardized property value at September 15, 2012. Despite this low level of indebtedness, municipal administration deems it important to properly manage the Town’s debt. This is why on July 16, 2012, Town Council adopted By-law No.1428 concerning the creation of a financial reserve for repayment of the long-term debt.
In conclusion, we are pleased with the positive financial results for fiscal year 2012. Rest assured that we will spare no effort in continuing to manage public finances with discipline.