Campbell River Mirror, May 15, 2013

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North Islanders cast their votes: For complete coverage of the election see www.campbellrivermirror.com

WEDNESDAY, MAY 15, 2013

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Mayor misinterprets city surplus Kristen Douglas Campbell RiveR miRRoR

Paul Rudan/The MiRRoR

Riding hard

Lindsey Innes and her horse Thirsty clip a barrel but still manage a second place finish in the 3D event of the Island Barrel Racing Series, held Saturday at the Innes Ranch in Oyster River. See more pictures on page A29.

Thank you to everyone who visited the Royal LePage booth at this years Spring Home Show. Congratulations our draw winners Nora Miles & Lynn Keogh.

ADVANCE

Mayor Walter Jakeway misinterpreted a surplus in last year’s budget prompting him to say council needlessly increased taxes last year. A city surplus revealed by auditors at last week’s council meeting does not represent available cash to lower property taxes, according to city auditors. Brad Piercy, an accountant with Meyers Norris Penny (MNP), told council that, in 2012, the city’s expenses were down by about $5 million, and the city has more assets than debt. He praised council for lowering its debt to $6.08 million – the lowest he had ever seen – and acknowledged that the city had a surplus of $3.69 million. “The auditors noted significant improvement in both the audit process and the city’s financial management, but unfortunately, an item called ‘annual surplus’ has been misinterpreted by some people – including the mayor,” said Coun. Andy Adams, council’s finance liaison. “It needs to be clarified that what’s called a ‘surplus’ does not represent real dollars available to be spent on general city operations.” The confusion began last week, when Jakeway approached local media about the surplus and his comments were reported elsewhere. “Tuesday night at council, the external auditor officially confirmed that in 2012 the city had a surplus of $3.69 million,” Jakeway told the Mirror. “The problem is, the city raised taxes 13.6 per cent on residential properties in 2012 which is equal to $2 million. In other words, there was Continued on A2

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