Annual Reports 2016 | Page 53

o o  Net Financial Assets – A net financial asset position indicates the extent that net financial resources are available to fund future operations and spending. In 2016 the District had moved to a net financial asset position of $3,840,080. This is due to repayment of debt and an increase in cash and cash equivalents due to the surplus that was recognized in 2016. As well, not as much capital was completed as has been budgeted for, resulting in excess cash at year end. The net debt and net financial assets will fluctuate from year to year depending on how much is spent on capital and how much surplus is recognized. However, the District should see a net financial asset position more as the reserves are held in line with the Reserve Policy adopted by Council. Accumulated Surplus or Deficit – the accumulated sum of non-financial assets and net financial assets. The District is in a “surplus” position. The surplus position reflects that net financial and physical resources are available to provide future services. In the event that an entity would be in a net deficit position, this would reflect that future revenues are required to finance historical operations. Statement of Operations and Accumulated Surplus This statement provides the budgeted and actual revenues and expenses of the District for the fiscal year. Revenues are presented by their sources of funds (i.e. taxation, user fees, government transfers, etc.) Expenses are presented by function or major program (i.e. Protective services, Water, sewer, etc.) The accumulated surplus represents the accumulated results experienced by the City over the years. 2016 revenues were in excess of budget by $5.4M or 20% (Actual - $31.7M – Budget $26.3M) due to the following:  Sale of Services revenue in excess of budget by approximately $386K due to arena, theatre, recreation and garbage revenues higher than expected, as well as water capital expenditure charge revenue higher than budgeted due to the large amount of development in 2016  Permits & licences revenues in excess of budget by approximately $715K due to the excess of building permit revenue over budget  Government transfers less than budget by $801K due to the water meter project being incomplete and funding for that project not yet recognized.  Developer contributions far exceeded budget by approximately $4.5M due the large amount of development in the District and the transfer of the assets from the developers to the District related to that development (roads, sidewalks, utility infrastructure etc.)  Other revenue was $335K above budgeted due to the sale of some land in the District. 2016 expenses were $373K or 1.9% less than budgeted ($20M budgeted and $19.6M actual). 2016 Annual Report 53 | P a g e