Jasper has dug itself out of a financial hole, but there鈥檚 still more work to be done.
According to the latest audit, the town鈥檚 financial health has improved from a net debt of $2.2 million in 2012 to a net asset of $2.7 million in 2016.
In layman鈥檚 terms that means the municipality鈥檚 total assets are greater than its total liabilities.
鈥淵ou鈥檙e going in the right direction, but you have a little ways to go still,鈥� said Chris Guilbeault, a chartered accountant with Hawkings EPP Dumont.
She presented her report to council May 2.
According to the audit, the municipality had a $1.4 million surplus in 2016, an increase from $1.1 million in 2015.
鈥淵ou are in an enviable position,鈥� said Guilbeault. 鈥淣et financial assets are up, the surplus is up, but that money needs to be channeled into the future.鈥�
She said the next step is to continue to build up the municipality鈥檚 reserves in order to chip away at the town鈥檚 growing infrastructure deficit.
鈥淓verybody is in the same boat across the province, but that鈥檚 something you need to consider over the next 20 years,鈥� said Guilbeault.
A high-level asset management report published in November 2015 found the municipality will need to invest between $3.31 million to $4.48 million per year to reduce its infrastructure deficit. That number could change as more 鈥渢actical level鈥� assessments are done on specific asset groups, such as the town鈥檚 fleet of vehicles.
Once the final asset management plan is complete, the municipality will have a clearer picture of what it will cost to replace its assets and will then be able to create a long-term financial strategy.
During her presentation she referenced Lac La Biche County because it was in a similar position as Jasper five years ago and has now managed to put away about $70 million in its reserves.
鈥淭hey鈥檝e done a good job of getting themselves healthy again,鈥� said Guilbeault.
The audit also included a breakdown of the town鈥檚 revenue and expenses.
In 2016 municipal taxes made up 44 per cent of the town鈥檚 total revenue, followed by sales and user fees at 33 per cent. Government transfers accounted for eight per cent of the town鈥檚 total revenue, while the remainder came from other sources.
Conversely, salaries, wages and benefits accounted for 47 per cent of the municipality鈥檚 expenses in 2016, followed by other costs at 19 per cent, such as amortization. Materials, goods and utilities accounted for 18 per cent of the town鈥檚 expenses, while contracted and general services represented 16 per cent of the towns overall expenses.
Paul Clarke
[email protected]
