Banff is forecast to be in the red to the tune of $121,000 by the end of the year based on the first three months of operations this year.
Officials say it’s still very early days, but some large variances were identified in the 2014 first-quarter financial statements, including reductions to a Municipal Sustainability Initiative (MSI) operating grant of $62,700 and estimated increases for police costs of $121,500.
“Administration will continue to monitor and look for ways to reduce the forecast deficit, either through increasing revenues or decreasing expenses before the end of the fiscal year,” said Chris Hughes, the Town of Banff’s senior accountant.
Increased policing costs are related to the fact that Banff RCMP is back closer to its full complement of members than what has been seen in recent years. More cops on the street may also lead to an increase in fine revenue for the municipality.
Cities and towns in Alberta with a population of more than 5,000 people must provide their own police service. Most municipalities commonly contract an existing service like the RCMP.
In Banff’s case, the Alberta government also kicks in funding to help pay for extra RCMP officers as part of a long-standing agreement that was signed when Banff became incorporated as a municipality in 1990.
Mayor Karen Sorensen pointed to the fact the increase in police costs are not a bad thing, but good news for Banff.
“It’s good news we have officers who want to work here,” she said. “I understand why we budgeted the way we did because they have been running below complement for many years.”
Meanwhile, in the first quarter administration has identified almost $95,000 of a targetted $130,000 in wage and benefit savings for the year.
