With more revenue than expected, the City of Guelph finished last year with a nearly $7.28 million operating budget surplus.
In a report heading to council’s committee of the whole on May 14, city staff recommend the surplus be split up and allocated to a variety of reserve funds, including $3.7 million for a fund used to lessen future property tax increases.
In December, based on the financial picture at the end of September, a $5.1 million surplus was forecast. This latest figure is based on the actual year-end numbers.
“The key driver for the difference from forecast to actual was higher than anticipated revenue realized across many departments partially offset by higher actual compensation and benefit costs than forecast and a smaller deficit than projected for social services costs billed by the County of Wellington,” the report explains.
At the time of the December forecast, the city’s social services bill from the County of Wellington, which provides services on the city’s behalf, was expected to be $4.4 million more than budgeted.
In the end, it was $2,621,072 over budget, a department by department breakdown shows.
If council approves the recommended transfers to reserves, $3.7 million will go to the tax rate operating contingency fund, $417,211 will go to the environment and utility reserve, $294,319 will go to Guelph Public Library’s operating reserve, and the Guelph police reserve will see $36,748.
The remaining surplus dollars are recommended to be put into a variety of capital project reserve funds, as well as the courts operating reserve.
