Tom Mennill, of KPMG, auditors for Centre Wellington, gave the township a clean report on July 16.
The audit covers the township’s financial activities, plus those of Centre Wellington Hydro, and the Business Improvement Areas of Fergus and Elora.
Centre Wellington’s total revenue for 2006 amounted to $30.2-million, up from $27.9-million a year earlier. The major sources were property taxes of $7.6-million, provincial subsidies of $3.8-million, federal subsidies of $1.2-million, fees and rents of $10-million, development charges of $2.3-million, and casino revenue of $1.8-million (of which $338,000 was transferred to the county).
Operating costs of the municipal government jumped from $1,448,000 to $2,077,000. The cost of the townships parks and operation of recreational facilities ballooned 44% to $3.6-million.
Capital expenditures were down, to $9.2-million, but 2005 was an extraordinary year with the construction of the pool and arena complex in Fergus.
Salaries and benefits for all departments in 2006 amounted to $7.3-million (up 21.1%). Materials and supplies cost $8.2-million (up 14%), and interest costs climbed by 30%. Partially responsible for those increases was the end of a contract with the Ontario Clean Water Agency to operate the Elora and Fergus sewage plants. OCWA billings totalled $625,000 in 2005.
New borrowing in 2006 totalled $457,000, compared to the $12-million debenture issue of 2005 to finance the Fergus recreational complex. When repayments are considered, the township’s total debt declined by $506,000. Interest payments on the township’s debt swallowed up $902,000.
One cautionary note in the auditor’s report concerned the Centre Wellington Community Medical Offices. That body, which provides office and clinic space to the medical profession and allied services, owes approximately $1.6-million to the township. At year end, CWCMO had a deficit of $30,000 in its working capital, and a deficit of $43,000 in assets. The auditor expressed concern that the municipality’s position might be compromised, and advised periodic reviews of the situation.
