By rdnewsNOW staff

Better Than Expected

Lacombe on track for 2020 budget surplus

Nov 24, 2020 | 10:55 AM

The City of Lacombe is on track to post a 2020 Budget surplus of between $400,000 and $600,000 –according to a third-quarter budget report presented to city council on Monday.

City officials say the surplus is due to several savings realized throughout the fiscal year – most notably council-approved service changes and COVID-19 related policies that helped alleviate the economic pressure put on by the pandemic.

“Lacombe city council is pleased to see the City is on solid financial footing heading into 2021,” Deputy Mayor Thalia Hibbs said in a release. “Through prudent measures, the City will be more able to weather any unpredicted future costs that may come with the ongoing pandemic.”

The City noted decreased operating costs due to facility closures, temporary layoffs and other short-term fiscal restructuring initiatives among its cost savings. Additionally, council deferred a Municipal Service Level Review and ended the BOLT intermunicipal transit service, resulting in both immediate and ongoing cost savings. The end of the transit service also resulted in a return of funds held in the BOLT fleet replacement reserve.

Not included in the expected surplus is an additional $1.4 million from the provincial government’s recently announced ‘Municipal Operating Support Transfer Grant.’ Municipalities across the province received grant funds to help alleviate COVID-19 related impacts.

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“Administration, on behalf of council, continues to work diligently to control costs during the pandemic, while maintaining services to residents.” Chief Administrative Officer Matthew Goudy added. “By maintaining the most financial flexibility possible, the City can better respond to unpredictable fiscal challenges in the upcoming year.”

As of September 2020, City revenues are said to be under budget by approximately 1.1 per cent ($408,000). The decline is described as being due to a combination of user fee reductions, tax and utility late payment deferrals, and other utility-funded operations. However, revenues from tax-funded operations are expected to be slightly above budget at the end of the fiscal year thanks to higher than expected development and growth.

City expenses are also trending under budget by 2.8 per cent ($924,488). However, due to the report’s timing, many expenditures incurred in the third quarter of 2020 are not realized until the fourth quarter. Administration expects expenses to be under budget by $450,000 at year’s end.

Council accepted the third-quarter report as information and will receive the fourth-quarter report in spring 2021.