Collingwood’s treasurer reported a $2.28 million surplus result from the town’s 2018 budget.
Marjory Leonard delivered her report to the Strategic Initiatives Standing Committee on May 28, along with information on how the surplus was allocated at year-end.
“A budget is a best guess,” said Leonard.
The 2018 budget estimated approximately $82.8 million in operating and capital expenses, so the surplus was less than three per cent of the total budget.
According to Leonard’s report, tax-related revenues were $1.26 million higher than budgeted in 2018. During a previous council meeting in March, Leonard said much of the additional tax revenue came from Wyldewood condominiums.
Assessment didn’t occur at those condominiums until January 2018, which added several full-year taxpayers to the budget after it was prepared.
In addition to the higher tax income, user fees and other revenues were $16.4 million higher than budgeted and expenses were $15.4 million over budget.
The higher revenues minus the amount over budget resulted in a surplus of $2.28 million
The greatest variances reported by Leonard came from the parks, recreation, and culture budget (a surplus of $680,258) and the planning department (a surplus of $221,530). The highest over budget was the public works and engineering department, which came in $579,721 over the annual budget for the department of $5.48 million.
In her report to the standing committee, Leonard explained the surplus is allocated based on the surplus management policy approved by council Aug. 21, 2017.
As a result of that policy, nearly all of the $2.28 million surplus went to the town’s reserve funds.
A transfer of 987,959 was made to the working capital reserve fund, which is supposed to be kept at $2.5 million. This is the account currently being used to cover the cost of the judicial inquiry into the 2012 sale of 50 per cent of Collus and the subsequent spending of the money obtained through the sale.
The surplus was also used to top up the capital contingency reserve fund (transfer of $366,000), the general reserve ($85,000) and the operating contingency reserve ($14,800).
From there, ten per cent of the remaining surplus ($83,000) was applied to the town’s internal loans.
There was a transfer of $448,800 to the lifecycle replacement reserve fund, and a transfer of $29,900 to the reserve fund allocated for growth not covered by development charges.
Finally, the remainder of the surplus went to reserve funds that have not reached their target amounts. The money was split between the winter control reserve fund ($26,797) and the lifecycle replacement reserve fund ($242,515).
Leonard’s report will go to council on June 10.
