Forecast has city on track to $14.4M budget surplus

In a municipal election year, this might not be a huge surprise: the City of Ottawa could be on track to record a big budget surplus in 2018.

A mid-year budget update released ahead of Monday’s finance and economic-development committee meeting predicts there will be $9.3 million left unspent in programs funded by property taxes, plus another $5.1 million surplus in the budget funded by water and sewer bills.

The $14.4-million projected surplus would be headed for city reserve funds, unless council earmarks specific amounts for programs, as it did at the end of 2017 with $10 million directed to asset repairs.

The budget forecast, however, doesn’t include up-to-date financials for arm’s-length agencies, such as the Ottawa Police Service, OC Transpo, Ottawa Public Library and Ottawa Public Health. The boards for those agencies will receive budget updates.

The largest program deficit in 2018 is expected in community and social services, which is forecasting a $5.7-million shortfall because of long-term care compensation attributed to round-theclock coverage and sick leave, plus an increase in homeless-shelter costs. The city has recorded a large increase in chronically homeless families this year.

The city is also expecting a $475,000 deficit in the accounts earmarked for council budgets because of severance payments made to the four councillors who aren’t seeking re-election. Those councillors are Bob Monette, Jody Mitic, Marianne Wilkinson and Mark Taylor. The city ’s “transition allowance” for council members not returning next term is equal to one month’s salary for each consecutive year served on council to a maximum of six months.

Program surpluses are expected in the recreation, culture and facilities, planning, infrastructure and economic development and areas not tied to specific program departments, such as investment income, penalty revenue and savings in bank service charges.

It appears the city made it through the early months of 2018 without a major snow budget problem. A $700,000 deficit in the road services branch is projected for the end of 2018, but surpluses in other public works and environmental services portfolios are expected to cover the shortfall.

When it comes to the water and sewer rate budget, the city expects customers will use the expected volume of drinking water this year. There are surpluses projected in all three areas: water, sewer and stormwater.

The municipal election is Oct. 22.