City ends financial year in the black

$346,000 surplus is .01% of $2.7B budget

The city stayed in the black last year despite weather messing around with its budget.

An overall surplus of $346,000 — .01 per cent of the city’s $2.7-billion operating budget — is to be contributed to various reserve funds, says a staff report to council’s finance and economic development committee. The report recommends how to handle deficits and surpluses in different areas.

Some departments fared better than others, it shows. Public works had a $4.8-million shortfall because of increased costs resulting from storms in late December, along with a summer drought that led to additional expenses for sports field maintenance and tree upkeep. ( Winter maintenance costs exceeded their budget by $3 million because of the late-year storms, the report says.)

Paramedics ended the year with a $2.2-million deficit, caused partly by arbitration settlements, the report states. A $3.5-million shortfall in parks and recreation resulted from revenue shortfalls in sponsorship, hall rentals and fitness memberships “and in admissions as a result of facility closures and construction,” it says.

Transit services ended the year with an operational surplus, but claims from past years and increased tax rebates resulted in an overall deficit of about $2.5 million. Lower water use was some of the reason for a $5.1-million deficit in sewer operations, the report says, while a $1.4 million shortfall in social services was in part due to reduced provincial funding.

Reserve funds should be used to cover some of the deficits, the report recommends.

On the bright side, surpluses were seen in areas such as housing services ($1.4 million) and child care ($2.1 million).

Lower collection and processing costs for recyclables helped the solid waste services department to a $1.4-million surplus.

It’s the third straight year that the city has ended the year in a surplus position.