From My Bottom Step

The Corporation of The City of London
June 16, 2009

FOR IMMEDIATE RELEASE

2008 financial report shows improvement

City Council last night approved the 2008 Financial Statements for London that showed a marked improvement in the City’s financial position.

The improvements arose after the City adopted strategies designed to:

• Contain costs and reduce debt
• Incorporate more pay-as-you-go financing to renew assets (buildings, road, sewers, parks, etc.)
• Increase reserves to create liquidity, flexibility and prepare for asset replacement or new investment

The impact on financial results was dramatic:

• The City’s accumulated deficit position improved from a total of $177 million in 2004 to $4.5 million (an improvement of $172 million)
• The total municipal debt per household declined from $2,490 in 2004 to $1,949 in 2008 (a decrease of $541 per household)
• Reserves and reserve funds increased from $210,253,000 in 2004 to $428,762,000 (an improvement of $218 million)

“The City is maintaining a very prudent course with its finances,” said Councillor Paul Hubert, chair of the Audit Committee. “We have strengthened ourselves as a municipality while successfully leveraging funding from senior levels of government.”