The City of St. Albert's second-quarter report says investment income, a surge in recreation facility usage, and RCMP officer vacancies are among the reasons a $1.54 million surplus is being projected for 2023.
Released last week, the report provides a high-level look at how the various city departments are performing financially halfway through the year, and includes forecasts for the remaining months.
“The primary drivers of the forecast surplus are the increase in interest revenue, operating grants, lower RCMP contract billing, and salary vacancies offset by (an) increase in energy costs,” the report states.
The city is currently sitting on $296 million in cash and investments, the report shows, which has generated $4 million in income for the city between January and June this year.
Also aiding the surplus projection is the recreation cost-sharing agreement the city signed with Sturgeon County earlier this year, the report says. As a result of the agreement, the city has generated $250,000 more in revenue than expected so far this year.
Another highlight for the recreation department so far in 2023, the report states, is a $145,000 surge of revenue more than expected from rentals and commission at city recreation facilities. Offsetting the recreation department's first-half success was the delayed re-opening of Fountain Park Pool, which cost the city an estimated $138,000 in revenue.
Moving into the emergency services department, the report says the city continues to generate more than expected revenue from ambulance surge billing to meet regional demand. So far this year, the city has earned $150,000 more than expected from surge billing. Last year the city generated nearly $450,000 more than expected from ambulance surge requests from Alberta Health Services, which represented an almost 50 per cent increase in overall ambulance billing revenue.
As well, the city has managed to save about $200,000 this year as a result of RCMP officer vacancies; however, those savings are offset by the $146,000 the city has needed to spend on officer overtime to make up for the staffing shortage.
Overall, offsetting the increased revenues and savings seen in most city departments has been high energy and natural gas prices, the report says.
Specifically, the city has spent $183,000 more than budgeted on powering street lights, and $182,000 more than budgeted on energy and natural gas for city buildings.
