City likely to end 2017 with surplus in Water Operations, Property Taxes and General Revenues, and losses in Transit and Electric Utility Tariffs
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LETHBRIDGE – The preliminary year-end city department financial projections are out – and overall – everything is expected to be in a positive position by the end of the year, according to City Treasurer Corey Wight.
“It looks like it will be an overall positive of just under $3,000,000 overall…that’s based on a $400,000,000 budget. Its’a little closer to the line than last year, which is just fine, but it’s a pretty normal forecast. There’s nothing in there that causes any concern going forward.”
At its regular meeting Monday, Wight explained to council that the City is currently operating in the third year of a four-year operating budget (2015-2018).
If there is a shortfall after this year, each department is expected to overcome the deficit by adjusting their expenditures next year (2018). If there is a surplus, departments can roll the amounts over to help operations in 2018.
The areas seeing the biggest gains include Water Operations at $1,980,000 – due to more people using the utility during the summer months. During July, August and September, Lethbridge reported record-level water consumption.
Property Taxes and General Revenue are also expected to end the year in the positive with a total of $1,840,000.
The Property tax surplus ($1,320,000) can be attributed to higher than anticipated cumulative growth in residential and commercial properties between 2014 and 2017, along with lower than budgeted losses related to tax appeals.
General Revenue positive numbers ($520,000) relate to higher than budgeted transfers from the Water and Landfill Utilities to General Operations, along with higher than expected penalties on property taxes.
There is also small surplus in the Mayor and City Council Office ($30,000) due to unused travel, promotional materials and communications expenses.
Other areas showing a surplus include:
- Wastewater Operations – $1,220,000
- Landfill Operations – $870,000
- Corporate Fuel Costs – $630,000
- Public Library – $315,000
- Permit, development and license revenues – $170,000
- Public Safety Communications Centre – $100,000
- Fire and Emergency Services – $100,000
- Cemetaries – $90,000
- Enmax Centre – $70,000
- Parking Operations – $60,000
- Employee Benefit Accounts – $50,000
- Regulatory Services – $60,000
- Transportation – $60,000
- Galt Museum – $20,000
- Lethbridge Police Service – $10,000
Areas that will likely see losses this year include:
The Electric Utility, which will see an overall $260,000 loss from operations this year, including $710,000 attributed to write-offs on metres because of replacements completed. Fibre Optic Operations and Regulated Rate Tarriffs will offset those losses somewhat.
The City’s Transit and Accessible Transportation department will end the year with a $180,000 loss. Wright explained that this was due to increased employee illness, which is being addressed at a management level.
Transit Maintenance and Equipment costs will also see a total loss of $105,000 after a new bus lift and uniforms were purchased.
Transit losses overall though, will be somewhat offset by a surplus from 2016 of $195,000.
Snow Clearing will likely end the year with a $55,000 loss, assuming snow conditions are normal until the end of 2017.
Traffic Safety Act Revenues will also be in the negative by $440,000. This, explained Wright, is because of weather conditions in January and February, which resulted in fewer tickets issued, one photo radar unit that was damaged and mechanical issues with another one, which had to be replaced.
Other areas which will likely see a loss this year include:
- Recycling Services – $145,000
- Enmax Foreign Exchange – $50,000
- Helen Schuler Nature Centre- $10,000
- City Solicitor Department – $10,000
