MCK announces 2017/18 Budget

03/28/2017

The Mohawk Council of Kahnaw�:ke (MCK) has finalized the 2017/18 fiscal year budget (April 1, 2017 to March 31, 2018). The new budget was approved unanimously by Chief and Council and is $51,761,407 including $11,079,059 going into various Appropriated Reserves.

For the first time in more than five (5) years, the MCK is projecting an operating surplus of $1.6 million, $1.1 million of it going toward secondary requests and strategic planning initiatives. Operating expenses grew at a stable 2% growth rate while top line revenue increased by 5% from 2016/17. Major factors in revenue growth are Mohawk Online (MOL) ($2 million) and the future payments from the Continent 8 (C8) sale ($1.6 million USD).

Other important points to consider about the 2017/18 budget:

�    For the first time, the budget is over $50 million. A major reason for that is the appropriating of funds into reserves, as well as an increase in targeted federal funding.
�    No revolving loan fund mortgage interest was allocated to Operations. All remained within Housing.
�    MOL revenue is being allocated to socio-economic programs/projects that are not completely funded by government sources
�    There are nine (9) more years of payments from the C8 sale. Some of this money will be used to fund new economic development initiatives.
�    The $25 million (USD) from the sale of C8 has been appropriated in an Investment Reserve to earn income. None of the $25 Million was used for operations.
�    The long-term plan for the $25 million (USD) is to start a development fund to generate sustainable income.
�    $3 million (CAD) will be used to invest directly into the community for socio-economic initiatives.
�    More details about both the development fund and the $3 million for socio-economic initiatives will be communicated throughout the spring/summer.

�Managers are doing a great job controlling costs. Operating expenses are lower than revenues for the first time since I joined the MCK,� said Paul Rice, Executive Financial Officer.

�The MCK will continue to seek out new revenue streams to grow top line revenue for the Community. We�re satisfied the $25 million will not be used for basic MCK operations,� said Iets�nhaienhs Gina Deer, Economic Portfolio Chief. �With safe investments, the money will grow and be available for future developments if required.�

�We may appear to be playing it safe by putting the $25 million away, but if an opportunity arises to secure the financial future of the community by investing, we will act on it,� said Grand Chief Joseph Tokwiro Norton. �In the meantime, we�ll be earning income and building wealth for the community.�