Budget surplus projected at the city, including a big turnaround in the water and sewer budget

There were a couple of budget items on Monday night’s council agenda, including a big turnaround in the city’s Water & Sanitary Sewer Year-end Projection.

A small surplus of nearly $39,000 is now expected because of slightly lower personnel costs, partially offset with higher insurance and utility costs. 

That’s a big difference from the $400,000 to $500,000 deficit projected in August.

A staff report says the projection was prepared on the basis that actual consumption billed for September represents what consumption will be for the rest of the year, which means it can still fluctuate.

The report also says the revenue forecast in August suggested the deficit was based on a downward trend in consumption patterns, which rebounded in September.

Meantime, the overall year-end financial project for the city (including all business units), shows  a surplus of just over $175,000.

Councillor Derek Shogren says when people hear surplus they usually get concerned on why dollars weren’t spent.

He says that doesn’t have to be the view people take.  Shogren says those surplus dollars can be used to build up reserves or go into other needed projects.

Meantime, another budget item on the agenda Monday was the approval of 50-percent of the Prior Year Capital Funding.

Budget Chief Sheldon Forgette says this is part of the investment into infrastructure they are going to make with dollars from the 2015 and 2016 budgets.

He says this is a new approach Council took last year and it showed to have its advantages.

Forgette says they got a head start on tenders for projects and they also save money.