The 2017 year-end financial report for the City of Yorkton shows a realized surplus of $427,640.
“For 2017 revenues were $420,240 higher than budget. Departmental operations were $27,928 higher than budget. When including capital, the net surplus for 2017 is $427,594,” explained Fred Schrader, Asst Director of Finance with the City, at the regular meeting of Yorkton Council Monday, May 14.
One of the major impacts on the final numbers were the result of tax appeals.
In 2017, the Saskatchewan Municipal Board (SMB) decisions rendered on multiple commercial property appeals resulted in a loss of $471,727. Further, in 2017 the City only budgeted for $100,000 in property assessment appeal losses as this amount has historically been more than sufficient. The appeal losses were offset by growth in the City’s total assessment, leading to taxation revenue $47,835 higher than budget, explained Schrader.
Other highlights of the final numbers included overtime incurred by Fire Fighters amounted to $127,230 more than budget, however this was partially offset in the amount of $73,700 by management monitoring their controllable expenses. As well Fire Department revenue being $19,000 higher than budget, said Schrader.
Deer Park revenues were $60,000 lower than budget, in addition to Clubhouse expenditures being $13,400 higher.
Traffic and Street lighting maintenance expense was $62,300 higher than budget.
Fleet rental income $389,000 more than budget given increased hours used for equipment. This amount was transferred to reserves for future fleet purchases.
Snow removal was $187,000 higher than allowed for within budget. In order to reduce this amount $100,000 was transferred from snow removal reserves, bringing the amount down to $87,000 above budget.
With water and sewer being a self-sufficient entity it relies on self-generated revenue opposed to tax dollars to fund its Capital projects. Water and Sewer’s Gross Revenues came in $1,066,700 higher than anticipated and expenses were lower than expected by $68,000. This surplus amount was transferred to reserves for future water and sewer capital expenditures.
Schrader noted the water numbers were “an anomaly” which was in essence an error in budgeting revenues from industrial water usage.
The surplus has been put away for use when needed.
“At the end of each fiscal year any surplus incurred is analyzed to see what contributed to the surplus. Future projects are considered, as well as any potential increases to operating expenses for the current year. Administration reviews how best to utilize the surplus incurred and presents a recommendation to Council. Administration’s recommendation for the 2017 surplus of $427,640 is to transfer the entire surplus amount to the City of Yorkton’s “Rainy Day Reserve Account” which would bring the total accumulated amount in the Rainy Day Reserve to $789,178,” explained Schrader.