Despite the pandemic, the City of Lacombe is projecting a budget surplus for the end of the fiscal year.
The City predicts they will have a surplus of 0.04 per cent equalling $13,641. This is higher than what was predicted in the spring budget. This surplus is due to lower municipal expenses, higher investment income and financial measures that were taken by Council as a result of COVID-19.
“City of Lacombe Administration is pleased to be able to present the Q2 Financial Report to Council. Due to challenges resulting from the pandemic, this report represents the fiscal responsibility that was maintained during the first half of the year. Currently, the City is trending to be in a surplus position at the end of the City’s fiscal year,” CAO Matthew Goudy said in an emailed statement.
However, the City is also reporting a risk of collecting outstanding taxes and utility arrears this year. The amount owed to the City in taxes is $6.6 million, as of June 30. In 2019 the amount of outstanding taxes was $1.5 million.
On the utility side, the City is owed $1.2 million in outstanding balances. In 2019 that number was $1 million. The amount of utility arrears has tripled from $119,000 in June 2019 to $337,00 in 2020.
In November, administration will present the financial report for Q3. This report covers July to September 2020.