While the final 2019 audit for the City of Yorkton is still several weeks away from being complete, Yorkton Council was given a look at the year-end numbers Monday, and they were generally positive.
Our auditors have been working entirely remotely, and we do expect delay with final audited financial statements. With that, however, we have come to our preliminary estimate of our 2019 year-end departmental surplus / deficits, related Ashley Stradeski, Director of Finance with the City at Monday’s meeting.
The bottom line for the City in 2019 was a budget surplus, one that will allow $422,000 be transferred to the ‘rainy day’ reserves, an undedicated fund Council can draw upon as they deem necessary.
The overall numbers saw a 2019 surplus realized of $677,396, with the operating portion being $167,577.
As in previous years, Administration recommends transferring 50 percent of the surplus to reserves on a per department basis depending on whether each department had net departmental savings.
There were also instances Administration recommended withdrawing funds from reserves to cover departmental deficits.
By continuing with this strategy, we encourage accountability of all departments and avoid the typical “use it or lose it” philosophy in government spending, said Stradeski.
“As the financial audit is not yet finalized; these are preliminary numbers. We expect to have a final report brought to Council in the coming meetings, with a recommendation to transfer funds to the rainy day reserve once the audit is finalized,” he added.
Among the year-end highlights was tax and grant surplus of $745,689.
“Tax collected is higher than anticipated,” said Stradeski.
Protective Services ran a deficit of $185,047, with overtime incurred by Fire Fighters far higher than budgeted being the biggest factor, said Stradeski.
Administration recommended $120,000 from fire reserves to offset the department deficit.
The Gallagher Centre and Water Park recorded a deficit of $437,363.
Stradeski said the Gallagher Centre faced a double problem in 2019, falling short of budgeted revenues and facing higher costs too.
It was recommended $200,000 from reserves be withdrawn to offset the loss.
While falling outside the general budget as a self-sustaining entity, the report covered water and sewer as well.
“The gross revenues were $760,000 higher than budgeted and expenses were over budget by $88,000. All surplus was transferred to reserves for future water and sewer capital expenditures. Additionally, with aging distribution pipes and severe temperature changes in the winter, water main break repairs were $368,000 higher than budget,” detailed the report to Council.
Councillor Darcy Zaharia said he was concerned by some of the number in particular the water revenues being $760,000 higher than budgeted.
“I don’t understand ... it being that far off,” he said.
Stradeski said the extra revenue was largely from increased demand for water, meaning bigger sales.
The report and its recommendations were unanimously passed by Council, with Administration to bring a final report back to Council noting the transfers and the remaining surplus for Council’s consideration.
