YORKTON - The City of Yorkton appears to be headed to a second straight year of significant surplus as the Preliminary 2024 Year-End Report, was presented to the regular meeting of Yorkton Council.
Citing several factors – but noting the main reason was higher interest rates on investments and savings, Ashley Stradeski - Director of Finance, with the city noted that the city is looking at a surplus to budget of $1,666,908. He added it is the second year of high surpluses in a row.
In terms of the higher than expected surplus interest income and tax penalties accounted for $1,196,229 according to material circulated to Council.
Taxes also generated $222,086 more than budget due to what Stradeski termed “growth in excess of expectations.”
Other revenue jumps – albeit far more modest were seen in Crown surcharges ($25,360), and Municipal Operating Grant ($58,096).
Operations overall realized a small surplus, although a few departments also ended 2024 in the red, noted Stradeski.
For example, Legislative & Council, Corporate Services and Bylaw, had a deficit of $434,291.
Corporate services, however, was over budget by nearly $440,000. The biggest contributing factor to this was salary costs related to severance pay that was not budgeted, for nearly $350,000, detailed the report.
Recreation and community services also saw a deficit of $137,784. Included in that was Deer Park Golf Course with a deficit to budget of $56,000.
The report detailed revenues did exceed budget by nearly $40,000 at the course, as well as savings on insurance and other administrative costs of $23,000.
Offsetting this unfortunately were clubhouse and course costs that exceeded budgeted amounts by $88,000 and $28,000, respectively. The largest chunk of these was some back utility costs for the clubhouse, which had not been charged appropriately by SaskPower. Fencing, fertilizer and irrigation costs drove up the course costs.
Stradeski also noted Transit is showing a large deficit of $74,000.
This is an area we know the costs are rising, and work is being done in conjunction with upcoming budgets to reduce cost overruns in this area. The cost increases are mostly incurred from increased operating costs with our contractor SaskAbilities.
The water park and Gallagher Centre were also in a deficit position in 2024 to the tune of $142,524.
The Access Communications Waterpark was under budget by approximately $57,000. Revenues exceeded budget, which is a positive sign and in fact were the highest they have been particularly with relation to our programming, classes and the like. The operating costs were all within budgetary estimations, resulting in the surplus to budget at the water park, detailed the report.
In addition Gallagher Centre operating expenses were over budget in several areas, totalling $158,000, or around five per cent over budget, said Stradeski.
The net deficit to budget for the Gallagher Centre (aside from the waterpark) is $200,000.
On the positive side Planning, Building and Development had a significant surplus at $574,254.
Planning & Building Services had a large surplus of $466,000. The expenditures within the department were all very close to budget, but the building permit revenue was the driver of this surplus. There was some very large industrial development happening that added to these revenues during the year, explained Stradeski.
The airport had a small surplus to budget of nearly $42,000.
It was recommended in the report that $42,000 go to airport reserves and $466,000 to development reserves,
Public Works had a $223,408 surplus and it was recommended $110,000 to snow removal reserves.
Snow removal costs were significantly higher than anticipated with early snowfalls in the 2024/2025 winter, exceeding budget estimates by over $340,000. However, as more staff and equipment time goes to snow removal, less is allocated to other areas so the majority of other areas see less spending than anticipated, explained Stradeski.
After the noted recommended transfers to reserves Stradeski said $1,020,549 would remain to go, at least initially, into the city’s ‘Rainy Day’ reserve,
The beginning balance in the “Rainy Day” fund is $2,404,590, net of projects allocated. By depositing $1,020,549 to this, we will end the year with a balance of $3,425,139, he said.
Council was unanimous in supporting the report as presented.
Now Administration will bring a final report back to Council noting the transfers and the remaining surplus for Council’s consideration in conjunction with the year-end audit results and financial statements at a future date.
