COLD LAKE - The City of Cold Lake’s finances are in solid shape, according to a detailed audit presentation delivered to council by Jeff Alliston of Metrix Group LLP during the City’s regular council meeting on April 22.
Alliston presented the audited financial statements for the year ending Dec. 31, 2024, confirming a clean opinion had been issued, meaning the financial statements fairly present the City’s financial position in accordance with Canadian public sector accounting standards.
“When it comes to the financial statements . . . we’re issuing a clean opinion,” said Alliston.
Throughout his presentation, Alliston talked about the audit’s role in building trust with key stakeholders such as council, taxpayers, and provincial authorities.
“I like to discuss or outline really what an audit is and the importance of it . . . to enhance the degree of confidence of the intended users of the financial statements.”
He stressed that while the audit provides a high level of assurance, it doesn’t capture every transaction and relies on professional judgment and skepticism.
Financially, the City experienced a $12 million reduction in cash, dropping from $33 million to $22 million, largely due to capital investments.
Alliston noted Cold Lake had positive cash flow from operations and investments but spent $17 million on tangible capital assets and paid down $2.7 million in debt.
Cold Lake’s long-term debt stood at $48 million at year-end, with new borrowing of $500,000 and repayments totaling $3.2 million. Despite this, Alliston confirmed the City is well within its legislated debt limits.
“You’ve got about $48 million in debt, so $52 million of unspent within your debt limits.”
He pointed out that while the City’s net financial assets decreased from $104 million to $90 million, the community still maintains a strong financial position with $17 million more in financial assets than liabilities.
Cold Lake’s investment portfolio, valued at $57.5 million, includes bonds and principal protected notes, while the City’s stake in the Cold Lake Primary Care Medical Clinic was also highlighted.
On the liabilities side, the City has $10 million in payables and deferred revenues, including $5.6 million in off-site levies that are earmarked for future capital projects. An asset retirement obligation of $4.7 million is also recorded, accounting for long-term costs of decommissioning assets between 2029 and 2074.
The City’s tangible capital assets total $318 million, with nearly $18 million in new additions, many related to the Lakeshore Drive redevelopment and other infrastructure work.
When financial and non-financial assets are combined, Cold Lake ended 2024 with an accumulated surplus of $336 million. Of that, $28 million was unrestricted, $44 million restricted, and $266 million tied up in tangible capital assets.
On the operational side, revenues climbed by $5.3 million, or 9.5 per cent, reaching $61 million. This growth was driven by higher tax assessments, increased utility revenues, and better investment returns.
“That left the City with total revenue of $61 million, but a $5.3 million increase from prior year, or 9.5 per cent.”
Taxes made up 38 percent of revenue, while user fees and government grants each contributed 20 per cent.
On the spending side, the largest outlays were in recreation and culture ($15.7 million), followed by transportation services ($13.8 million), and administration ($12 million), the latter impacted by an increase in debt expenses tied to the 4 Wing base.
Alliston concluded by reiterating the City's overall financial health and its ability to meet liabilities, while continuing to invest in infrastructure and maintain service levels.
“So, if you were to take . . . liabilities here of $73 million and your financial assets of $90 million, you end up with a net financial asset position of $17 million. So that means that the city currently does have sufficient financial assets to meet all of its liabilities.”
Council accepted the presentation as information.
