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Essa financial statements show township in good shape

July 18, 2013   ·   0 Comments

The 2012 draft financial statement for Essa township shows that the township continues to maintain itself in good financial  shape.

Richard Steinginga of Collins Barrow Kawarthas  told council last week that the township’s long term debt, at $7,837,006 as of December 31 2012, continues to decrease by about $500,000 per year and the township’s capital assets increase by $3,000,00 to over $95,000,000 at the end of 2012.

Steinginga said that he voice some concerns about the increase in unpaid taxes which rose from 11.7% in 2011 to 12.2% in 2012.

“I know that were several hundred thousand dollars worth of payments of overdue taxes in the first months of 2013 which brought the percentage back to the 11.7%.. The province recommends that tax receivables should be at 10%,” he said.

Unpaid taxes are charged an interest rate of 1.25% per month and must be paid if a property is sold. The township can also sell a property for unpaid taxes after a three year period.

Steinginga also  urged the township to continue its efforts to create a working  fund reserve to reduce the need for short term borrowing.

The accepted level for a working fund level is at 10% of the taxation levy. Essa’s fund at $1,673,321 stands at about 8% of the taxation levy.

Essa mayor Terry Dowdall said that he was pleased with the news from the audit.

“I think that its good news for the township and its residents,” he said.

The full draft is available at www.essatownship.on.ca

By Richard Blanchard

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