The City of YellowknifeSA国际影视传媒檚 finances appear promising following an audit conducted for 2021, however, the municipality is keeping a little bit extra tucked away to deal with lingering effects from Covid-19.
Sharolynn Woodward, director of corporate services, presented the municipalitySA国际影视传媒檚 2021 financial report during the May 2 governance and priorities committee meeting.
She said the city is keeping more than is required in the general fund to address supply chain disruptions and increasing costs that the municipality continues to incur due to the pandemic.
According to the citySA国际影视传媒檚 budget fund stabilization policy, the municipality aims to keep between 10 and 15 per cent of budget expenditures in the general fund, however, that currently sits at 24.7 per cent, or $10.7 million.
SA国际影视传媒淕iven the likelihood that Covid is going to continue to have far-reaching impacts, administration believes that this balance can, at this point, be viewed as a prudent buffer for the upcoming months,SA国际影视传媒� Woodward said.
Coun. Shauna Morgan pressed staff on why the budget policy isnSA国际影视传媒檛 being followed and pointed out that the city is supposed to offer full services and keep costs low for the public as much as possible.
SA国际影视传媒淎nd so weSA国际影视传媒檝e talked a lot about how these are exceptional times (with) the Covid pandemic. Is there a plan though?SA国际影视传媒� she asked. SA国际影视传媒淲e canSA国际影视传媒檛 continue indefinitely, just saying weSA国际影视传媒檙e always in exceptional times. At some point, we either change the policy or decide weSA国际影视传媒檙e going to align ourselves with the policy.
SA国际影视传媒淭o me, itSA国际影视传媒檚 not ideal that we would continue to show these kinds of surpluses or extra cushions unless we decide that our policy is to have a certain sort of inflated cushion that we decide is just a good idea.SA国际影视传媒�
Woodward replied that the fund stabilization policy had been created pre-Covid and that staff are recommending the extra amount be kept in the pot for another year because of uncertainties.
SA国际影视传媒淲eSA国际影视传媒檙e seeing the effects of Covid still, and weSA国际影视传媒檙e also going to feel this in our supply chain this year,SA国际影视传媒� she said. SA国际影视传媒淭hereSA国际影视传媒檚 going to be quite a roller coaster ride in our expenditures as things that we ordered a year to 18 months ago are finally getting here. But things that weSA国际影视传媒檝e ordered now may or may not show up in the foreseeable future. So it would seem prudent, given these uncertainties to kind of ride out the Covid wave.SA国际影视传媒�
Mayor Rebecca Alty said there were advantages and disadvantages of having the some extra money leftover in the general fund, although she agreed it does mean lesser services can be immediately provided.
Because of Covid-related facility closures and staff vacancies last year, the city saw salaries, wages and benefits all lower than budgeted in 2021.
SA国际影视传媒淚tSA国际影视传媒檚 not the ideal position at all, but I think on the flip side is we do have a bit of a surplus,SA国际影视传媒� said Alty. SA国际影视传媒淚nflation is the highest itSA国际影视传媒檚 been in 30 years and so we donSA国际影视传媒檛 have to freak out right now because we have have a bit of that surplus available.SA国际影视传媒�
Woodward said the report is positive as there are higher-than-expected revenues and lower-than-budgeted expenditures during the year and that the citySA国际影视传媒檚 annual surplus reached $15.8 million over the last year.
Much of those results came about because of SA国际影视传媒渆xtremely conservativeSA国际影视传媒� budgeting due to Covid fears and because of user fees, sales of goods and land sales being higher than expected, Woodward said.
Council is scheduled to cast a final vote on the financial report at the May 9 regular meeting.
