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Surplus forecast for city coffers |
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Written by Gerald Gauthier LETHBRIDGE HERALD
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Monday, November 23 2009, 7:55 PM |
The city is expected to finish 2009 in the black thanks in part to administrative efforts to hold off on filling some vacant staff positions due to the economic slowdown.
That was the overall message Monday when City Treasurer Corey Wight delivered his year-end financial forecast to city council members who met as finance committee. A $865,000 corporate surplus is forecast along with a $990,000 surplus from tax-supported business units.
“We are on track financially. We should finish the year in a positive position,” Wight said, noting the efforts of some departments to offset or eliminate potential deficits by leaving staff vacancies unfilled for the time being.
For example, development revenues are expected to be $350,000 lower than expected, but the department is projected to see a $70,000 surplus because of $420,000 in savings created by leaving vacant jobs open.
Lower-than-expected spot energy prices and vacant positions largely contributed to a $1.3 million surplus in electric wire services utility operations.
As council has heard in previous reports, however, a snow removal budget deficit of $1.8 million is expected because of unusually severe weather conditions last winter.
Parking revenues are also forecast to finish the year in a $45,000 deficit due in part to a significant increase in vandalism to the devices. On average, about 150 meters have been out of service because of vandalism.
The corporate surplus arose mainly from a $775,000 surplus in employee benefit accounts due to delays in the implementation of anticipated contribution rates to pension plans.
Other notable items from the report include:
• a $200,000 projected deficit in the parks department
• a deficit of up to $300,000 in landfill operations
• a $200,000 surplus in recycling services
• a $155,000 surplus in utility services mainly due to unfilled positions
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