General News

Council receives year-end Budget Variance Report

September 12, 2024   ·   0 Comments

By Brian Lockhart

New Tecumseth Council recently received a Budget Variance Report with information as of June 30, 2024.

The report was received at the Aug. 26 council meeting.

The report forecasts year-end operating financial results and capital projections as of June 30.

Key findings are summarized as, a forecasted town surplus of $45,000, and a forecasted water and wastewater surplus of $113,000.

Overall capital projects are forecasting a favourable variance of $858,000.

On Dec. 11, 2023, Council approved the 2024 Town Water and Wastewater Budgets, illustrated within this report. Pursuant to financial management best practices and budgetary control, quarterly and year-end operating variance reports are submitted to Council to provide projected operating results to year-end. In addition, the reports provide status updates on budgeted capital projects throughout the year, including additional details for projects considered to be high profile per the Town’s Capital Project Administration and Reporting Policy.

The operating budget provides for expenses that cover day-to-day expenditures and activities including utilities, insurance, staff wages and benefits, program supplies, and facility/equipment repairs and maintenance.

For town operating expenses, staff are forecasting a year-end surplus of $45,000, made up of a favourable revenue variance of $373,000, and an unfavourable expenditure variance of $328,000. These results may change as the year progresses.

For financial results, environmental staff are forecasting a year-end surplus of $113,000.

The Town’s 2024 capital plan includes a total of 165 capital projects valued at $110 million. Staff are forecasting a favourable variance of $858,000 at the end of project completion.

The town has reserves and reserve funds which are critically important for financial sustainability.

Reserves and reserve funds purposes include stabilization reserves, Capital from Taxation Reserve to fund new capital works projects, legislation and growth, and asset renewal.

This also includes gas tax – Federal Gas Tax funds received by the town and are primarily used to fund the annual road improvement projects. 

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