Post by Max on Jun 12, 2008 1:53:45 GMT -3
Strong economy powers city to $5M surplus -- comment on this story
Councillor pushes to spend windfall on road repairs
Posted By BY DENIS ST. PIERRE, THE SUDBURY STAR
Updated 14 hours ago
A strong local economy is being cited as a key factor in a 2007 budget surplus of nearly $5 million for the City of Greater Sudbury.
At least one councillor wants to see as much of the surplus as possible spent upgrading area roads.
A 2007 budget surplus as high as $3.8 million had been projected for months by city officials. However, a staff report prepared for tonight's city council meeting pegs last year's surplus at $4.9 million.
The major contributor to the surplus is higher property tax revenue for 2007 -- almost $2.7 million more than anticipated, the report shows.
"Increased general revenues, which are largely uncontrollable, are responsible for the majority of the municipal surplus, which is partially driven by the strong economic environment in Sudbury," the document states.
"Continued strong building activity has been the main reason for a positive variance in this area."
Local economic strength also benefited the city with regard to provincial funding programs, to the tune of more than $2 million.
While the improved economy has resulted in lower costs for some social programs, the province committed not to cut municipal funding for those programs in 2007, resulting in a benefit to the city of more than $1.8 million. The city also saved about $300,000 last year as a result of a reduction of social assistance cases in the community.
Booming construction and development last year also resulted in a $1.1-million increase in revenues from tipping fees at city landfill sites and from the sale of recyclables, according to the report for city council.
The report identifies 11 budget areas that produced surpluses of $200,000 or more compared to initial projections. Also identified are seven areas in the budget that incurred significant deficits or overexpenditures.
The largest overexpenditure came in human resources, where costs exceeded budget by more than $1.2 million. The increased costs were "due mainly as a result of job evaluations this division has experienced," the city report states. No details are provided in the document.
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The city took a $1-million budget hit last year due to high fuel and maintenance costs for "asset management" and operating and maintaining the municipal vehicle fleet.
The city's leisure and recreation services section incurred an overexpenditure of $830,000 "as a result of aging infrastructure and an extended parks season," according to the municipal staff report.
"Lack of capital dollars to upgrade deteriorating infrastructure has resulted in additional maintenance costs required to maintain recreational facilities," the report states.
"In addition, the longer summer and fall season has necessitated the need for more grass cutting and other parks functions ... Also, the ski hills reflect a net overexpenditure ... due to upgrades and repairs to the Lively Ski Hill and lower-than-budgeted revenues due to a lack of snow."
The city's net budget surplus of nearly $5 million means there should be more money available for road improvements, says Ward 6 Coun. André Rivest.
"I think most of the money that is available should go for roads," Rivest said Tuesday. "I think the bulk of it should go there."
Any additional funds for roadwork also should be distributed equitably among city wards, he added.
"We all have bad roads and this is everybody's surplus, so we should all benefit from it," said Rivest, who has complained in the past of inequitable distribution of road spending.
Precisely how much money could be available for additional roadwork is unclear, given that much of the 2007 budget surplus already has been committed to various projects and services.
"During the 2008 budget deliberations, council approved a number of onetime initiatives to be funded from the anticipated 2007 surplus.
"The total of these initiatives is $3 million," notes the staff report, which will be reviewed tonight by council. The report does not itemize the programs and services for which the $3 million is earmarked.
According to city council policy, the remainder of the 2007 surplus -- nearly $2 million -- will be placed into municipal reserves funds, initially at least. It will be up to council to decide if any of the remaining surplus funds will be drawn from reserves to spend on other projects.
The $4.9-million surplus represents one per cent of the city's $486-million operating budget for 2007. That compares to a $1.5-million surplus in 2006 and $9 million in surplus funds in 2005.
Councillor pushes to spend windfall on road repairs
Posted By BY DENIS ST. PIERRE, THE SUDBURY STAR
Updated 14 hours ago
A strong local economy is being cited as a key factor in a 2007 budget surplus of nearly $5 million for the City of Greater Sudbury.
At least one councillor wants to see as much of the surplus as possible spent upgrading area roads.
A 2007 budget surplus as high as $3.8 million had been projected for months by city officials. However, a staff report prepared for tonight's city council meeting pegs last year's surplus at $4.9 million.
The major contributor to the surplus is higher property tax revenue for 2007 -- almost $2.7 million more than anticipated, the report shows.
"Increased general revenues, which are largely uncontrollable, are responsible for the majority of the municipal surplus, which is partially driven by the strong economic environment in Sudbury," the document states.
"Continued strong building activity has been the main reason for a positive variance in this area."
Local economic strength also benefited the city with regard to provincial funding programs, to the tune of more than $2 million.
While the improved economy has resulted in lower costs for some social programs, the province committed not to cut municipal funding for those programs in 2007, resulting in a benefit to the city of more than $1.8 million. The city also saved about $300,000 last year as a result of a reduction of social assistance cases in the community.
Booming construction and development last year also resulted in a $1.1-million increase in revenues from tipping fees at city landfill sites and from the sale of recyclables, according to the report for city council.
The report identifies 11 budget areas that produced surpluses of $200,000 or more compared to initial projections. Also identified are seven areas in the budget that incurred significant deficits or overexpenditures.
The largest overexpenditure came in human resources, where costs exceeded budget by more than $1.2 million. The increased costs were "due mainly as a result of job evaluations this division has experienced," the city report states. No details are provided in the document.
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The city took a $1-million budget hit last year due to high fuel and maintenance costs for "asset management" and operating and maintaining the municipal vehicle fleet.
The city's leisure and recreation services section incurred an overexpenditure of $830,000 "as a result of aging infrastructure and an extended parks season," according to the municipal staff report.
"Lack of capital dollars to upgrade deteriorating infrastructure has resulted in additional maintenance costs required to maintain recreational facilities," the report states.
"In addition, the longer summer and fall season has necessitated the need for more grass cutting and other parks functions ... Also, the ski hills reflect a net overexpenditure ... due to upgrades and repairs to the Lively Ski Hill and lower-than-budgeted revenues due to a lack of snow."
The city's net budget surplus of nearly $5 million means there should be more money available for road improvements, says Ward 6 Coun. André Rivest.
"I think most of the money that is available should go for roads," Rivest said Tuesday. "I think the bulk of it should go there."
Any additional funds for roadwork also should be distributed equitably among city wards, he added.
"We all have bad roads and this is everybody's surplus, so we should all benefit from it," said Rivest, who has complained in the past of inequitable distribution of road spending.
Precisely how much money could be available for additional roadwork is unclear, given that much of the 2007 budget surplus already has been committed to various projects and services.
"During the 2008 budget deliberations, council approved a number of onetime initiatives to be funded from the anticipated 2007 surplus.
"The total of these initiatives is $3 million," notes the staff report, which will be reviewed tonight by council. The report does not itemize the programs and services for which the $3 million is earmarked.
According to city council policy, the remainder of the 2007 surplus -- nearly $2 million -- will be placed into municipal reserves funds, initially at least. It will be up to council to decide if any of the remaining surplus funds will be drawn from reserves to spend on other projects.
The $4.9-million surplus represents one per cent of the city's $486-million operating budget for 2007. That compares to a $1.5-million surplus in 2006 and $9 million in surplus funds in 2005.