City Releases 2023 Financial Statements
The Corporation of Hamilton released its annual financial statements for 2023.
A spokesperson said, “The Corporation is pleased to note that our financial statements are presented again this year with an unqualified audit opinion from independent auditors.
“In releasing its financial statements, the Corporation wishes to highlight recent developments concerning the legal ruling by the US District Court and its potential financial implications for the Corporation.
“On July 5, 2023, the US District Court ruled in favor of Mexico Infrastructure Finance, LLC [MIF] and against the Corporation of Hamilton. The court determined that MIF is entitled to recover $22,472,725 from the Corporation.
“The Corporation is actively appealing this decision and is seeking legal advice on the enforceability of the ruling in Bermuda, particularly considering the Privy Council’s decision in January 2019 in favour of the Corporation. Despite this, the Corporation is required under generally accepted accounting principles [GAAP] to recognize this potential liability in its financial statements as an expense for the current year.
“As a result, the Corporation reported a deficit of $21.9 million for 2023, compared to a surplus of $0.8 million in 2022.
“Interested members of the public are invited to view those statements here; a few highlights of which are included below:
Statement of Operations
“In the Statement of Operations, total revenue for 2023 was $26.8 million, a notable increase from $25.5 million in 2022. Key revenue components such as property taxes remained stable at approximately $8.6 million, while goods wharfage increased to $7.9 million from $7.7 million. Car parking fees saw a significant rise to $5.0 million from $4.3 million, reflecting higher utilization rates.
“However, total expenditures also increased substantially from $24.8 million in 2022 to $48.8 million in 2023. This includes a notable rise in administrative and general expenses, which grew to $9.3 million from $8.4 million, and sanitation services expenses, which increased to $3.8 million from $3.5 million. Administrative and general expense increases were due to increased legal fees related to the MIF case as well as an increase in computer expenses. Other increases are partly due to the increased cost of doing business. The largest single increase was the $22.5 million expense related to the MIF liability.
“Despite the deficit, the Corporation remains committed to its strategic vision of sustainable growth and infrastructure development, ensuring that Hamilton continues to thrive as a vibrant city.”
The City of Hamilton’s Chief Executive Officer, Dwayne Caines, stated, “The City is held accountable to its rate payers and, as such, we are proud to uphold our obligation to operate with fiscal prudence and engage in transparent processes by publishing our audited financial statements.
“Our continued ability to undertake significant capital projects and host world-class events without the need for additional borrowing is a testament to efficient financial projections and planning. Key projects during 2023 included the fabrication and installation of the iconic Bermuda Marquee sign, City Hall office refurbishment, the refurbishment of the Earl Cameron Theatre dressing rooms, as well as significant paving works. At the City, we prioritize balancing our financial responsibilities alongside our commitment to our community.”
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