INDICATOR/THRESHOLD REVIEW

Indicators for: North > 1,000 < 2,500

Financial Indicator

Threshold

Value for this Municipality

Median

Average

Risk Level

Per household Debt burden

For per household debt burden, less that $400 is considered low. $1,000 is moderate. Over $1,000 is considered high. Significantly high debt load should be explored further.

$273

$413

$446

LOW

Own purpose debt charges as A% of Municipal operating expenditures

For own purposes debt charges, less than 5% is considered low, 5 - 10% is considered moderate and over 10% is considered high.

For example, if debt burden and debt charges are high, then the indicator would be High risk. If debt burden is high and debt charges are moderate, then the indicator would be Moderate risk.

4.1%

3.2%

3.6%

Temporary Loans for current purposes as a % of total municipal operating expenditures

Section 407(2)(b) of the Municipal Act 2001, states that the amount that a municipality can borrow may not exceed 25% in the last quarter (Sept - Dec.) A high % should be explored further.

More than 20% is considered high risk, 15% to 20% is considered moderate risk and less that 15% is considered low risk.

0.7%

0.0%

1.6%

LOW

Total Reserves and Discretionary reserve funds as a % of Municipal operating expenditures

Comparison is to be based on municipal grouping and local knowledge. Low amounts are considered high risk and should be explored further. Low reserves indicate a municipality that has little flexibility to offset non-budgeted revenue losses or expenditure increases

$1,110.00

#N/A

#N/A

LOW

Total reserves and discretionary reserve funds as a % of Municipal operating expenditures

Comparison is to be based on municipal grouping and local knowledge. A low % is considered high risk and should be explored further. Low % indicates a municipality that has little flexibility to offset non-budgeted revenue losses or expenditure increases

26.9%

16.2%

23.1%

LOW

Total taxes receivable as a % of total taxes levied

This is a lower/single tier measure. More than 15% is considered high risk. 10% to 15% is considered moderate risk. Less than 10% is considered a low risk.

6.5%

15.2%

17.0%

LOW

Surplus / Deficit as a % of own purpose taxation

The Municipal Act, 2001 requires municipalities to set a balanced budget. Significant surplusses should be monitored. Local knowledge would determine whether a surplus is not moderate or high risk. For deficits - 10% or more is considered high risk. 5% to 10% is considered moderate risk. Less than 5% is considered low risk.

7.9%

Annual Repayment Limit

$249,470

Borrowing Capacity @ 7% over 10 years

$1,752,175

Interest Rate

7.00%

Term in years

10

Municipal Position

per household

Municipal position gives an indication of the overall financial status of a municipality and is dependant on municipal financial reporting practices. This is for information purposes only. If municipal position is negative for two years it should be investigated.

2002

$384

2003

$580