2006 AUDITED FINANCIAL STATEMENTS PRESENTED TO COUNCIL

Mr. Dale Rose, of Sander Rose Trobak, Chartered Accountants presented the 2006 Audited Financial Statements to Council at the Regular Meeting held on May 1, 2007. Mr. Rose congratulated Council and management on a successful financial audit, noting that the District of Tumbler Ridge is in an enviable financial position. Mr. Rose identified that the hiring of a Chief Financial Officer contributed greatly to the overall financial management of the District of Tumbler Ridge.

Mayor, Mike Caisley quoted the following ?The outcome of our annual audit and current financial status is excellent. It is a reflection of sound financial management by both Council and Staff. The level of expertise now available to Council on an ongoing basis has been the key. Our CAO, Lonny Miller and his CFO, Trevor Seibel are to be congratulated for this outstanding audit result.?

The net financial position of the District of Tumbler Ridge rose slightly to $68.3 million which is a $1.38 million, or 2% increase over the fiscal year ending December 31, 2005. There is $9.98 million in surplus and reserve balances of which $5.6 million, or 56%, is restricted through operating and statutory reserves. Total revenues for 2006 increased 15% compared to 2005 while expenditures increased 21%.