Oakville’s financial position remains strong

Tuesday, October 05, 2010 – for immediate release

Oakville’s financial position remains strong

Town releases financial results from January 1 to June 30, 2010

The Town of Oakville released its six month financial report to Council last night outlining the town’s strong fiscal position. Information released by the town’s Finance department shows that the town’s program operating budget stands at a $1.7 million surplus.

“By managing our resources wisely, the town is in a strong financial position. We stand at over a million dollar surplus and our debt levels are within policy,” Mayor Rob Burton said. “We also continued with our performance-based, program-based budgeting process this year which focuses on targeting spending to measurable outcomes. We improved our roads, enhanced services, and continued to maintain the quality of our programs and facilities while keeping taxes low — all important parts of becoming the most livable town in Canada.”

In addition, the town’s current debt levels are well within corporate policy. The estimated outstanding debt for 2010 will be $74.2 million which is down from the original budget projection at the beginning of the year of $89.1 million. Of this, $22.1 million is tax supported debt which was issued primarily for roads projects and $52.1 million is non-tax supported debt which is paid by other non-tax sources such as development charges; fees from self-supporting business units such as Harbours and Parking, and community groups such as the Pine Glen Soccer Centre.

“We do not expect our current taxpayers to pay a premium for the town’s growth. Growth must pay for itself,” added Burton. “Council remains committed to recovering the maximum allowable under the development charge legislation to ensure growth pays for itself.”

The town has also benefited from Oakville Hydro’s sale of Blink Communications Inc., which totalled after taxes $105 million. In a report to Council in September, part of the proceeds of the sale was designated for hydro projects such as a transformer station, smart meters, an integrated energy system for the new Oakville hospital and solar energy development.  A special dividend of $40 million for the Town of Oakville will be placed into a reserve fund and interest generated by investing the money will be used in the town’s operating budget to make up for the reduced hydro dividend resulting from the sale of Blink.

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Media Contacts

Nancy Sully
Deputy Treasurer and
Director, Financial Planning
Town of Oakville
905-845-6601 ext. 3143
nsully@oakville.ca          

Gisèle Shaw
Manager, Corporate Communications
Town of Oakville
905-845-6601, ext. 3166
gshaw@oakville.ca


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Oakville’s financial position remains strong