A major Town of Canmore budget surplus last year has been used to reduce the amount of debt related to the Multiplex project.
Council transferred $1.5 million from the 2010 operating fund surplus to the Multiplex last Tuesday (Sept. 20).
While administration recommended the money be parked and used for the 2012 budget, Mayor Ron Casey made the motion to reduce debt related to the major capital project.
Casey said to use the money as recommended by administration would create a slush fund during operational budget discussions.
“It is like getting an extra allowance for everyone to dip into for 2012… if we are budgeting properly we should be able to live within our means,” said the mayor. “Why not put it towards lowering debt?”
As a result, $6.1 million in debt is lowered to $4.5 million for the $39 million project.
Manager of financial services Terry Holt said in the past surpluses were directed towards the tax stabilization fund or capital reserves.
With a budget committee formed this year, he said the surplus could be parked in the general operating reserve, which currently has a balance of $2.5 million, and used for one-time items or to top up reserves.
“Putting it in this reserve allows more information to come forward from the budget committee,” Holt said.
Councillor Gordie Miskow was the only one to vote against the motion, preferring to review next year’s budget before allocating the funds.
“If we didn’t have a budget committee I would be voting with you on this,” he said.
Coun. Hans Helder expressed concern at the size of the surplus.
“I am rather disappointed to see the size of the surplus at the end of the budget cycle,” Helder said, pointing towards the tough budget process council undertook last year to find $1 million in savings. “I would not expect that after that kind of discussion.”
Holt said the budget areas that resulted in the surplus were addressed in the 2011 budget.
Those areas include $320,000 in additional revenues from penalties on outstanding taxes and utilities, more licenses and permits than expected, additional revenue from arena rentals and increased franchise fees from ATCO.
Salaries, wages and benefits saw $495,000 in savings while cost saving measures related to expenses such as travel, conferences, education and training, hosting, telephone, advertising and printing, insurance, rental/leases and general supplies resulted in $352,000 in savings.
Professional fees saw overall savings of $205,000, while legal expenses were under budget by $129,00 and $76,000 was saved in professional service fees.
Contracted services saved $307,000, the police contract was $100,000 under budget, snow removal $82,000 below and a $125,000 additional cost savings was found in all department areas.
“All of these things were dealt with in the 2011 budget,” Holt said. “The 2011 budget is a lot tighter because of the process we went through.”
