Substantial reserves and a low amount of debt earned Wellesley Township a glowing review of their 2015 audited financial statements, as presented to councillors on Tuesday night.

“The township remains in a strong position, both for the short-term and long-term. And that shows good, sound financial management. You’ve got a low debt burden as you’re aware, consistent operating outcomes and a strong liquidity position,” said Peter Graham of Graham Mathew Chartered Accountants.

He says one of the highlights or key performance indicators when he looked at the township’s financial statements was the Waterloo North Hydro investment. The township owns a 6.6 per cent share of Waterloo North Hydro and its affiliates.

“I guess each of us wished we had that in our RRSP portfolio, or whatever portfolio you have because that thing is bearing over 6 per cent per annum return on investment. Since its inception it’s grown by about $4 million, that’s net of dividends you received,” Graham said.

He commended the township’s decision to pay off the geothermal debt of around $51,000. He said the township is easily saving five per cent, in terms of investment dollars because of it.

“Your reserves are maintaining, they’re very stable. They’ve gone up consistently as well. And of course as your reserves go up you’re building up equity,” Graham said.

Last year the township increased its reserves by almost $380,000, which he says is a good indicator of a strong financial position. About $20,000 was put in the tax stabilization reserve, another positive.

The township has also made great strides on paying off its debt.

“Your current debt that we repaid last year off your debt was about $140,000 and all of your debt will be substantially repaid in about the next four years,” Graham said.

That will be the case unless council decides to invest in any large infrastructure projects requiring borrowed monies.

“Tangible capital assets, I wish they didn’t have them in your statement. They confuse everybody. They’re assets that have been paid for over the last 50 years, 60 years, but they’re set up on the balance sheet,” Graham said.

This includes land, buildings, infrastructure, machinery and equipment, and vehicles.

“Last year you invested over $1.8 million in TCAs, and that’s for the benefit of the ratepayers and the taxpayers and the residents of the township, and that’s a good thing. Since we initiated this system in 2008 of booking these tangible capital assets we’ve invested almost $18.5 million and we’ve only got about $250,000 left in debt. Now that’s quite an accomplishment, I think, in long-term debt,” Graham said.

A new addition to the financial statements this year was the five-year financial review. In it, it shows assessment growth in all areas is rather substantial. One of the areas of the review shows revenue by category and how it’s grown over the years. He says it really hasn’t grown very much, which means council is keeping the tax rate at a reasonable or economic level.

“I want to encourage you to continue doing what you do. It’s very good. In the region you’re I think one of the strongest municipalities,” Graham said.

The audited financial statements can be viewed at www.wellesley.ca.