Did you know...?
By the end of its second year, the City had overspent its operating and capital budgets by $4.3 million. In spite of our multi-million-dollar computer systems, they blamed “a poor bookkeeping system”.
As of Aug. 26th, staff is projecting a $1.7 million deficit in the operating budget for 2003. If the City had not used $250,000 from reserves, that projected operating deficit would be $1.95 million. They're still blaming the bookkeeping system.
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Because of the 2002 deficit, the City's working capital reserve has been reduced from $7 million (2001) to just $5 million (2003). Total reserves are now almost half what they were in 2000. (See
graph below).
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"Leveling up" of services will continue to increase taxes for services you may not want.
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The City spent $75,000 to buy “the latest model” ice resurfacing machine without even questioning what was wrong with the one being replaced.
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Amalgamation was supposed to result in savings of at least $6.6 million after three years. Instead, aggregate tax increases since amalgamation are $11.3 million.
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Sand and gravel intended for municipal purposes is being sold by the City in competition with local pit operators.
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City Council has voted to eliminate area rating for some services. As a result many taxpayers are paying for services they don't receive.
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Taxpayers across the City will pay over $1 million in interest on the $7 million gift to Ross Memorial Hospital.
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A CoKL staff report (June 16, 2003) states: “Once they [the auditors] ... actually started doing the work assigned the books were in far worse shape than anyone could have imagined...”
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The auditors’ letter to Council (March 17, 2003) included 46 pages of comments. A sampling:
- “...the City had over $54 million in cash and short-term investments, yet we understand the City does not have a documented Investment Policy.”
- “Bank reconciliations were not completed in a timely manner. The main causes are ... inadequate supervision and control over cash receipts”
- “Bar receipts from one arena for events from Aug – Dec 2001 were not deposited until 2002.”
In spite of a recommendation from the auditors, the City of Kawartha Lakes still has no Audit / Finance committee.
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