The City of Yorkton's operating budget report had both good and bad news, but in the end it ran at a deficit of $187,000, which will be taken from the city's reserves.
Finance director Lonnie Kaal explains that the shortfall is largely due to changes in the Municipal Operating Grant formula, which was based on the 2012 census. She says that the budget was based on the previous formula, and the new version provides much less money.
Councillor Randy Goulden says that SUMA is considering its reaction to the changes to the funding formula, and she says that the organization has voiced its concerns about the changes and is considering its response based on forthcoming information
One conscious decision involved drainage and working on storm sewers, which contributed $144,000 to the deficit. Kaal says this was intentional in order to ensure the storm sewer network is functioning, and to reduce flooding.
There were, however, some bright spots. There was a greater than expected interest acquired as well as a surplus from Protective Services. The Fire Department had reduced expenses and wage and training savings. As well the RCMP collected significantly more fine revenue than expected. Combined, they contributed $270,000 to a surplus. While they may have had a surplus, Kaal says it is not significant enough to offset the losses seen.
The plan to deal with the deficit in the operating budget is reduce transfers to the reserve fund the additional airport capital expenditures, and reduce transfer to reserves by $70,000 for the Gallagher Centre, $50,000 for Public Works, and $50,000 for facilities to help fund deficits in these departments.
