The City of Parksville’s finances are looking good, according to the annual financial audit by MNP.
The firm gave Parksville an unmodified or "clean" audit opinion, which means it is satisfied the city’s financial statements were prepared accurately, according to a presentation by Cory Vanderhorst of MNP.
The city's yearly revenue of $38 million in 2024 was down "significantly", compared to the $47 million it brought in the year before, as 2024 saw the city receive some large government grants, such as the Growing Communities Fund, Vanderhorst said.
He added the city's total expenses increased by about a million dollars to $33 million, but were still well under budget.
The city's cash and investments increased by a little more than $10 million and sat at $91.8 million at the end of 2024, while total total financial assets also increased by approximately $10 million to just under $99 million, according to Vanderhorst's presentation to council's May 5 meeting.
“Debt is being paid down on schedule, so from $4.9 [million] to $4.69 million at the end of the year,” he said.
The city's total financial liabilities, such as debt, payables, deferred capital contributions and deferred revenues, increased to $35.4 million from $33.5 million.
“If you subtract those liabilities from the total financial assets you get what we call the net financial asset position. That has improved from $55 million to $63 million at the end of the year,” Vanderhorst said.
Tangible assets, including infrastructure like roads and sewers, decreased in value from $215 million to $212 million, which Vanderhorst said means things depreciated more in value than the city spent on new assets.
The city has an unrestricted surplus of $35 million and a restricted surplus that has increased from $25.9 million to $33.7 million. The restricted surplus is made up of reserves and amounts that are "rolling over" for future projects.
The audit gave Parksville a positive sustainability (ratio of financial assets to liabilities) score of 2.8. A ratio of greater than 1 means reserves have been set aside for future projects, according to Vanderhorst.
“You can see here the ratio has been increasing for the last few years, from 2.46 a couple years up, up to 2.8, so as you’re putting money aside into reserves," he added. "That is a healthy trend.”
The city's "flexibility" score (refers to aging of assets, but is not a condition assessment) has been trending downwards for a few years, Vanderhorst said.
The "carrying value” (or depreciated value) has declined from 72.4 in 2020 and to 68.9 in 2024.
Council voted to approve 2024 Audited Financial Statements.
