The Town of Banff is forecasting a $30,436 surplus at year-end.
The municipality’s second quarter financial statements show there has been $274,000 savings in wages and benefits, but increased expenses in other areas have eaten up most of those savings.
Mayor Karen Sorensen commended administration for saving $274,000 in staff wages and benefits – much more than the $110,000 directed by council at budget time.
“It shows that our decision with the hiring freeze is firmly demonstrated in these savings, however, a number of those savings have been absorbed by additional costs that weren’t anticipated,” she said.
“I thank administration for their dedication for working to save on wages and benefits. Sometimes those decisions come at a cost, because we’re short-staffed for a period of time.”
Following the first quarter statements, $255,946 has been transferred from the budget stabilization reserve to fund a significant shortfall in the provincial funding for police services.
In addition, there were two unbudgeted projects approved by council in the second quarter –$90,000 to replace dead and dying trees along Banff Avenue and $27,160 to cover parking and traffic projects.
Other variances for the second quarter include:
• Parking and traffic fines forecast at $15,000 under budget due to lower than expected ticket revenue.
• government grants forecast at $444,000 under budget, largely due to change in provincial funding for RCMP.
• contracted services for the operations department is $62,895 over budget, due to an additional $16,000 for extra snow removal (which was covered by snow clearing reserve), $6,500 for cemetery maintenance and $26,300 for major repairs to vehicles and equipment.
• Legal fees in the utilities department are forecast at $10,000 higher to cover the costs of developing a contract with NViro for the wastewater treatment plant changes.
• Contracted services in utilities area is $30,000 over budget due to ongoing management of the waste piles at Castle Junction landfill.
• rental revenue at the rec centre is expected to be $15,000 below budget due to construction delays, which led to late occupancy of the concessions operation.
• Ice rental income is forecast at $47,700 below budget due to lower than anticipated summer ice rentals.
• Room rental revenue and site use fees are forecast at $35,000 below budget as they are affected by the late occupancy of the concession operation.
• Lease fees are forecast at $92,300 over budget due to a budgeting oversight when the lease for the Cascade Plaza parkade was transferred from the Streets cost centre to town-owned lands centre.
Councillor Leslie Taylor, known for being a fiscal eagle eye on council, said she is pleased administration has saved money on wages and benefits, but there is still the big picture to be considered.
“It’s good they saved money there, but we shouldn’t lose track of the fact that all of that, except for about $30,000, was absorbed by other unanticipated expenses,” she said.
Coun. Taylor said the finance committee – which was formed in 2010 as a way of council and administration keeping a closer eye on town finances – is working the way it should be.
“People are paying a lot of attention to the money. Both administration and council have to constantly be looking at the dollars,” she said.
