September 15, 2020 / For Immediate Release
MUNICIPALITY OF THE DISTRICT OF LUNENBURG, NOVA SCOTIA – The Province recently released their annual Financial Condition Indicators results for 2019/20, showing that the Municipality is in strong financial health.
The indicators provide a risk‐based approach to evaluating municipalities and are presented in a house format graph. This visual focuses on key performance indicators, leading financial indicators and potential internal and external factors that could have an impact on a municipality’s financial results. The risk thresholds are coloured: yellow indicates medium risk, red indicates high risk and green, low risk. The overall financial condition risk assessment for our Municipality is green, which means that the Municipality is considered low risk for fiscal instability.
“As in previous years, MODL has green indicators in all categories, with the exception of budget accuracy, which is red due to budget surpluses,” said Elana Wentzell, Director of Finance. “A budget is a plan and can change throughout the year when we plan for projects that may not move forward or are delayed due to funding partnership approvals, or when revenue estimates are too conservative. The surpluses are placed in reserves to ensure there are funds to help mitigate the financial impact of major, non‐recurring or unforeseen expenditures on the Municipality’s annual operating budget as well as take advantage of unexpected opportunities to leverage external funding programs.”
“The Municipality is in a strong financial position,” said Mayor Carolyn Bolivar-Getson. “We are very close to being debt free, which is expected in fall of 2021. We continue to keep our tax rate steady. As the report shows, Council continues to set aside sufficient funds to help mitigate any unforeseen risks, and we have healthy reserves to help address unexpected events and provide flexibility to address future projects.”
Elana Wentzell, CPA CMA
Director of Finance
Municipality of the District of Lunenburg