The city will end 2009 on a high note with a $1.3-million operating surplus.
The operating surplus is a result of extra revenue from development permits, emergency dispatch service through the fire department, and Servus Credit Union Place.
Revenues from development permits exceeded budget by more than $700,000. From January to September, nearly $89 million in permits were issued, compared to $44 million in 2008. Business also licences increased, jumping to 3,039 in 2009 from 2,868 the year before.
One of the main fiscal surprises was Servus Place, which came in with a lower than anticipated deficit of about $480,000, along with higher than expected revenues from a jump in users.
The year-end numbers far exceed city hall projects from even December, when the surplus was pegged at $700,000. Dean Screpnek, general manager of corporate services, says administration underestimated the dollars coming in from development permits.
“Where we may have under-forecasted would have been on the planning side. We realized there’s a lot more planning revenue certainly than anticipated,” Screpnek said.
Members of council will review the preliminary figures during this afternoon’s finance and audit committee meeting. Council will not decide what to do with the surplus until March, although some members have already stated it should go towards operating expenses for 2010.
Administration is expected to recommend allocating the funds to any potential funding deficits related to approved capital projects.
Administration will also likely recommend paying off the remaining estimated $900,000 in internal borrowings to Servus Place. This will allow the city to save approximately $215,000 from the 2010 operating budget and slightly reduce the 2010 tax rate by a quarter of one per cent.
The $1.3-million surplus represents a 1.2 per cent variance from the approved budget of $112 million. The year-end books are still subject to audit.
