Woolwich & Wellesley Township's Local Community Newspaper | Elmira, Ontario, Canada
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Wellesley’s auditors give books, clean bill of health

For the second year in a row the Township of Wellesley has been presented with a clean bill of health from an auditor’s report, which came in two and half weeks ahead of time. Having spent some of its reserves on infrastructure projects to take advantage of stimulus funding over the last few years, the township remains in good shape with net financial assets increasing by $568,000 from $8, 925, 000 to $9,494,000, say the auditors of the township’s books.

“Last year the net assets to the townships debit were 3-to-1 and this year it has gone up to 4.3- to-1 which is a very positive thing,” Peter Graham told councillors meeting June 4.

Two items that contributed to the growth were the investment in Waterloo North Hydro and paying down some long-term debt, explained the accountant with Graham Mathew Partners and Associates.

“Last year the net investment from Waterloo North Hydro went up to $460,000. Over the last six years that investment has gone up $1,750,000. The return on investment was about 8.29 per cent and the dividend has tripled to $125,000 for 2012,” said Graham.

The township also paid down $110,000 in debt to get the net asset figure up and had $247,000 in new assessment.

“To me this number indicates that all the planning that we have done has come to fruition financially and everybody in the township had a part in making that happen. I have to say I am surprised that this is the case as I was not expecting these kinds of numbers,” said Mayor Ross Kelterborn. “I am very pleased with this total picture.”

In the last four years the township has invested almost $13 million in infrastructure but has only borrowed $380,000 to do it: $300,000 for the new township building and $80,000 for the Linwood ball park.

“That is incredible. That is like buying a car for $13,000 and only borrowing $380 from the bank to do it,” said Graham. “Not many municipalities can boast such figures.”

With the township paying its debentures, it will be debt-free in 2019 if the township does not borrow anymore over the next seven years.

“The debt is being cleaned up pretty quickly.”

The over all financial health of the township is very strong, said Graham.

Over the last year total reserves have gone up to $3,614,000 from $2,847,000.

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