Corporation Of Hamilton Financial Statements

June 29, 2018 | 0 Comments

The Corporation of Hamilton announced that the 2017 Financial Statements have been posted on its website.

The City said, “The Corporation’s excess of revenues over expenditures for 2017 was $1.9 million. This was more than double the amount reported in 2016 of $918K and far exceeded budgeted expectation which was projected to be a shortfall of $150K.

Revenues

“Total revenues were up by $1.2 million from $22.2 million in 2016 to $23.4 million in 2017. Goods wharfage and dock charges increased by $573K and $98K, respectively. Car parking fees showed signs of growth from $2.9 million in 2016 to $3.1 million in 2017, due to the installation of barriers in three car parks.

“Car Parking fees also included parking ticket revenue of $127,525 which the Corporation received for the first time during the year through the Traffic Offences Procedure Amendment and Validation Act, which came into effect on June 1, 2017. In addition to parking, other permits and license fees were also up by $136K.

Expenses

“Total expenses also increased by $143K from $21.2 million in 2016 to $21.4 million in 2017. This was due to increases in parks and garden maintenance and street operations maintenance of $268K and $249K, respectively, which were higher due to increased street resurfacing.

“This was offset by decreases in City Hall maintenance and administrative and general expense which saw decreases of $144K and $109K, respectively, as legal fees incurred in 2016 were not incurred in 2017. Several other expense items were down when compared to the prior year as a result of the Corporation’s efforts to control costs.

Derecognition of Fire Service Accrual

“In October 2017, the Government of Bermuda agreed to write off the receivable of $6,270,950 from the Corporation and the Corporation also agreed to write off rental income of $4,550,000 due from the Government with the expectation that the outstanding tipping fees will also be waived.

“Tipping fees of $2,998,683 due to the Government have been accrued as at December 31, 2017 and are included in vendor accounts payable. The derecognition of the fire service accrual is included in the statement of operations for the year ended December 31, 2017. This issue has been a growing concern since the conclusion of the original Fire Station lease in 2008.”

Mayor Charles Gosling commented, “The Corporation wishes to thank this Government for agreeing to resolve, in part, a long-standing issue through the write-off of the potential debt related to the conclusion of the fire service agreement, its costs and loss of rents through the lack of a new lease.

“I am looking forward to a positive outcome in 2018 concerning this and other outstanding issues with Government, bearing in mind, the monies being recorded here are for rents never received and liabilities never paid for. This changes the stated financial well-being of the Corporation as it removes a large piece of potential liability but has little if any impact on the cash flow or reserves.”

The Audited Financial Statements follow below [PDF here]:

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