The City of Yorkton ended up in a deficit position on its 2012 operations.
That was the news Yorkton Council was given at its regular meeting Monday by Lonnie Kaal Director of Finance with the City.
The net deficit was $187,000.
The deficit was the result of pressures on both the revenue side, and more significantly on the expense side of the ledger, explained Kaal.
In terms of revenue the budget project for the Sask Energy grant-in-lieu revenues was short $204,000.
Kaal said gas sales were actually higher in the City in 2012, but natural gases prices were significantly lower so the grant was lower than budgeted.
In addition the Municipal Operating Grant was also lower than budgeted by $162,000. Kaal explained the grant was based on population statistics before the 2012 Census. The City’s budget was approved prior to the formula change accounting for the budget shortfall.
The budget was also impacted by most City Departments spending more than they had budgeted in 2012, starting with City Hall which saw a deficit of $48,000.
Other departments and facilities running over budget included Deer Park Golf Course $42,000, library $22,900, Gallagher Centre $150,000, Municipal Airport $182,000.
Public Works also went over budget by nearly $200,000, but Kaal said $144,000 was an over expenditure approved by Council.
“In an effort to prevent flooding; inspections and cleaning of storm sewers was done on Circlebrooke, Clarewood and along Palliser. Camera inspections of drainage pipes on Dracup, and Fourth and Fifth to Dracup revealed significant blockages and these lines were cleaned. Catch basins were repaired and a complete storm pipe inventory was documented for PSAB. Initially it was thought that some of these expenditures could be offset by savings in snow removal but the fall snowfalls used up this surplus,” detailed a report circulated to Council.
To deal with the final $187,000 deficit City Administration recommended reducing transfers to fund the additional airport capital expenditures, and reduce transfer to reserves by $70,000 for the Gallagher Centre, $50,000 for Public Works, and $50,000 for facilities to help fund deficits in these departments.
Council approved the financial year end with the adjustments to the transfers to reserves.