MUNICIPALITY OF MACHIN
FINANCIAL INDICATOR REVIEW

reviewed by the Ministry of Municipal Affairs - as of October 24, 2003

 

Population:        1,030                                  Households:       664


CRF is Community Reinvestment Fund


INDICATOR/THRESHOLD REVIEW

Financial Indicator

Threshold

Value for this Municipality

Indicator for Northwest Municipal Grouping

Risk Level

 

Median

Average

 

CRF as a % of Municipal Operating Expenditures

A high % indicates a municipality with a dependency on the CRF to operate. 35% or less in acceptable per Royal Bank of Canadian Standards





14.4%





#N/A





22.7%





LOW

Per household debt burden

Less than $400.00 is considered low, $400 - $1,000 is moderate. Over $1,000 is considered high per Royal Bank of Canada Standards. Significantly high debt load should be explored further.





$281.00





#N/A





$429.00





LOW

Own purpose debt charges as a % of Municipal Operating Expenditures

Normal growth municipalities should have percentages < 20% and higher growth municipalities <25% per Royal Bank of Canada Standard. A high % indicates a municipality that has high fixed costs and may not be able to respond to sudden demands on the budget.






1.8%






#N/A






2.2%






LOW

FINANCIAL INDICATOR REVIEW FOR THE MUNICIPALITY OF MACHIN

Financial Indicator

Threshold

Value for this Municipality

Indicator for Northwest Municipal Grouping

Risk Level

 

Median

Average

 

Total reserves and Discretionary reserves funds as a % for municipal operating expenditures

This is a lower/single tier measure. The % should not exceed 10% per Royal Bank of Canada standards




22.5%






#N/A




34.6%




LOW

Total taxes receivable as a % of total taxes levied

This is a lower/single tier measure. This % should not exceed 10% per Royal Bank of Canada Standards




7.3%




#N/A




13.8%




LOW

Surplus/

Deficit as a % of own purpose taxation

10% is considered acceptable per MAH; RBC measures budget variance and uses 5% as satisfactory




12.5%

 

 

 

ARL own purpose debt charges as a % of net revenue fund revenues

Ontario Reg. 403/02 limits a municipality’s debt and financial obligation limit to 25% of its net revenue fund revenues




4.2%

 

 




LOW

Annual repayment limit

 


$262,287

 

 

 

Borrowing Capacity @5% over 25 years

 


$3,696,658


Interest Rate


5.00%


Term in Years

          25%

The Municipality of Machin is required to upgrade the Vermilion Bay water Treatment Plant, a system which services approximately 200 users. The total estimated cost of the project is $4,356,924 of which $4,339,414 is deemed as eligible. Bother federal and provincial assistance has been confirmed for a total contribution of $2,892,942. Provided that NOHFC assistance is received, the municipality will be required to contribute $740,818. Machin has advised the Ministry of Municipal Affairs of their inability to fund their share.