Yorkton Council unanimously accepted its 2015 Financial Statements at their regular meeting Monday.
Collins Barrow PQ LLP audited the financial position of the City of Yorkton as at December 31, 2015.
They confirm that the financial statements present fairly, in all material respects, the City’s financial position and the results of its operations and changes for the year ended, said Shannon Bell, Director of Finance, with the City.
“In conjunction with new Canadian auditing standards, a final statement cannot be issued until the auditors receive approval from Council. The Auditors are required to audit procedures up to the date of approval to include any subsequent events. Once Council approves the draft statements and the Director of Finance signs the representation letter, the auditors will issue financial statements,” detailed material circulated to Council.
“There are two new requirements for the 2015 financial statements. The first is PS 3260, Liability for Contaminated Sites which establishes standards on remediation, recognition and measurement and provides requirements for financial statement presentation and disclosure. As at the date of the financial statements the City of Yorkton does not recognize this as a liability, as the City is not expecting to lose future economic benefit,” said Bell.
The second requirement is PS 3270, Solid Waste Landfill Closure and Post-closure Liability which establishes standards on how to account for and report the liability for closure and post-closure care of a solid waste landfill in government financial statements.
“The City has calculated its closure and post-closure costs required in the next 70 years. Based on the percentage used of the landfill the City’s current liability is $1,073,853,” said Bell.
“To come to this liability the City consulted with Stantec’s engineer’s as to the estimated costs to close the landfill and to maintain the site for 25 years after closure.
“Stantec assumed that the current landfill pit would be closed in 2020 at a cost of $5,504,191 and the 2016 expansion would close in 2056 at a cost of $7,662,338.”
However the numbers were amended to fit the City’s expected timeline.
“In discussions with the Director of Environmental Services it was determined that the City would not actually go through the closure process in 2020 & 2056. As long as the City has the appropriate amount of cover the landfill could be utilized for a significant amount of time into the future,” said Bell.
“When the City looks to close the landfill we will be looking at the entire site for closure and not the individual pits. Currently we are estimating closure to occur in 2085; therefore the closure and post closure costs for the entire site were forecasted to 2085.
“At the end of 2085 we will have approximately $34,354,448 which is estimated to be sufficient for the closure of the current and future pit in addition to the costs that will be incurred over the 25 years after 2085 for post closure.”
Overall Bell said the audit report was very positive for the City, including the City’s current debt limit which is $42 million, with $16.2 million currently used $5.3 million for the Fire Hall, $4.5 million for the Gallagher Centre and $6.3 for waterworks.
“We are pleased that the Independent Auditor’s Report indicates compliance with Canadian Public Sector Accounting Standards,” said Bell.
