A Moment with the Mayor: Assets and Liabilities at the City

The City of Lloydminster’s 2025 financial statements were approved by City Council at the April 20 Regular Council Meeting. The report includes 38 pages outlining the City’s revenues and expenses for the year and, while detailed, is organized using standard accounting practices followed by municipalities across Canada to ensure consistency and transparency.

A common question is whether the City makes a profit. The goal each year is to operate with a balanced budget. Factors such as weather, material costs, labour, and contract work can impact the final results, meaning the City may end the year with a surplus, a balanced position or a deficit. Any surplus is transferred to reserves to support future projects or offset costs. A deficit would need to be balanced by drawing from reserves, however, the City has avoided this through ongoing financial monitoring.

Another common question relates to the accumulated surplus, reported at more than $661 million. While “surplus” can sound like extra cash, under Public Sector Accounting Standards it represents the net value of the City’s assets after liabilities, not money on hand. This includes the value of buildings, roads, water and sewer systems, stormwater infrastructure, land improvements, machinery, equipment, and other long-term assets. It reflects the community’s overall investment in infrastructure and services over time, rather than funds available for new spending.

The City also maintains reserves to plan for future needs and major projects. The financial statements reflect both day-to-day operations and long-term investments from January 1 to December 31, 2025, and include explanations to help readers understand how the information is presented.

The Finance and Communications teams work together to present this information clearly and consistently in the Annual Report, which has received the Canadian Award for Financial Reporting. Residents are encouraged to review the 2024 Annual Report at Lloydminster.ca/AnnualReport, with the 2025 Annual Report expected this June.

The full 2025 financial statements are available through the April 20 Council agenda at Lloydminster.ca/Agenda.