Airdrie's star continues to rise as City staff calculated how much Airdrie's net worth has grown since its inception.
The City of Airdrie completed its 2023 annual financial audit, which included an accumulated surplus of $1.1 billion. That is an increase of $83 million over 2022.
“The accumulated surplus represents the net financial performance of the city since day one, it is all of annual surpluses and deficits the City has ever reported and indicates the City’s ability to provide future services,” said Sarah Laviolette, lead of Airdrie’s accounting services
At the end of 2023, $934 million of the $1.1 billion accumulated surplus was represented by tangible capital assets, such as infrastructure assets, said Laviolette. This means the City is left with $142 million to finance future operations.
The Annual Report was presented to Council on April 16, showing that Airdrie also saw a 17 per cent increase in total revenue in 2023 over 2022, totalling $267 million.
“This increase is mainly due to growth and related increases in user fees, development levies, and property taxes, as well as increases in government transfers regarding the 40th Avenue interchange and the library and multi-use facility,” Laviolette said.
In 2023 the city saw unprecedented demand in community services including increased pass and admission revenue at Genesis Place, and higher transit ridership.
Council documents stated the actual revenue was still $30 million below budget, mostly due to federal and provincial government transfers coming in much lower than budgeted.
The City spent $183 million in 2023, an increase of $16 million over 2022.
Increases in 2023 over 2022 included staffing costs by $6 million, contracted and general services by $4.5 million, materials, goods, supplies, and utilities and purchases from other governments by $2 million, while amortization increased by $1.2 million.
While expenses increased in 2023, the City’s expenses were $4.5 million less than planned mainly due to projects carrying forward to 2024.
This indicates the City’s commitment to consistent and accurate budgeting processes, stated Laviolette.
“The City is in a net financial asset, as opposed to a net debt position, which demonstrates our ability to manage our finances,” Laviolette said. “Our net financial assets have an increasing trend over the years with a total balance of $142 million which can be used to finance future operations.”
That translates into an increase of 43 per cent in 2023 of the City’s net financial assets in 2022.
The City’s long-term debt decreased by $7 million to a total of $67 million in 2023, resulting in debt per capita of $826. The City’s total debt is currently 21 percent of the total debt limit of $321 million, allowing space for future investment.
Laviolette showed that the reserve balances have grown over the past eight years with a total ending balance in 2023 of $207 million.
“Overall cash decreased by $14.5 million in 2023 and indicates a healthy final cash position of $47 million at December 31, 2023,” stated the agenda document.
The fieldwork for the 2023 annual financial audit was conducted during the four-week period from February 26 to March 22, and included the City of Airdrie Library Board, Airdrie Housing Limited, Airdrie Mainstreet Square Real Estate Inc. and Family and Community Support Services (FCSS).
