City Facing Deficit Close To $1 Million

It looks like the City’s projected budget deficit - estimated to be about $500,000 to $1 million - is going to be on the higher side.

As in much closer to $1 million than to $500,000.

It’s not the news Council was looking forward to hear.

During discussion about spending $314,500 on eight additional Parks and Recreation capital projects finance director Brian Acker revealed the 2023 projected deficit.

“Certainly, that deficit is looking like it will come in higher than our estimates…We had estimated (a deficit ranging between) $500,000 and $1 million. We’ll be closer to that $1 million range. So certainly it is significant,” Acker said.

Councillor Heather Eby attributed the City facing an almost $1 million deficit to actions by previous Councils.

Councillor Eby attributed shortfalls in the Accumulated Surplus Account due to previous Councils spending the money where it should not be spent.

During the post Council media scrum MJ Independent asked city manager Maryse Carmichael what caused the shortfall and what the City was going to do to fix it.

Carmichael said the City would be taking a two pronged approach to the deficit.

First of the City would be enacting changes to its accounting reporting procedures to report monthly.

And secondly Administration would be preparing a report looking into the reasons for the nearly $1 million deficit.

“One of the things I started at the City is monthly financial reviews with all department heads,” she said. “I come from a military background but also a corporate side where we do follow closely the financials.”

Asked where the City was going to find the funding to fill the large deficit hike she said Administration is looking at it.

“That is something we’ll come to Council in the next few weeks so we are, as (finance) director (Brian) Acker mentioned we are looking at a few areas where we can use (funds) for this.”

The public report will tell the “entire story” of how the City got into the financial mess they’re in.

At the present time the City is finalizing the 2023 year financials do they can be sent off to the auditors. Their report is expected closer to May.