Current town budget looks optimistic
By John Watson Local Journalism Initiative Reporter
The Town of Strathmore is forecasting a nearly quarter-million dollar financial surplus at the conclusion of this fiscal year, according to the latest quarterly report.
Tom Maier, manager of financial reporting and budgeting, said though the projection is just an estimate, it is a significant asset to the town, should they stay on track with their current budget.
“This is just a snapshot at this point in time, as we move towards the end of the year. It is a bit of a moving target but right now, we are forecasting a surplus of about a quarter-million dollars,” said Maier. “It would have been significantly higher than that, but we had the impact of the MSI grant that was to be used for debt payments. That has lowered it, but we are still in a positive position.”
He added the goal for the town for the remainder of the fiscal year is to remain on target for its expenditures.
Ideally, Maier said, he will present another report to council before financial statements are brought forward in April.
“We are pretty well on target for our expenditures and revenue for the year,” he said. “As indicated in the report, we are at about 98 per cent of our revenue and 97 per cent of our expenses so we are pretty well on target.”
The town has yet to process the tax revenue from the solar farm for this year, which will be detailed in December.
The town is currently awaiting assessment details from the province in order to fine-tune its revenue from the solar farm. Maier estimated $150,000 of tax income for the town from the farm.
Retro Payments to the RCMP are estimated to account for a $400,000 expense to the town, which has been reflected in the budget forecast.
“Hopefully it is less than that in the future, but it is something that we need to be aware of and account for it,” said Maier.
Over the course of 2022, 80 capital projects were launched, with 10 being delayed, and five being cancelled altogether.
“We have a number – more than probably in the past, that have been delayed just because of material costs and other factors not allowing those projects to move ahead this year,” he said.
The town is forecasting to have spent $8.8 million of their budgeted $9.6 million on capital projects this year by the time any outstanding projects are completed.
Maier suggested that the town keep any savings in reserves for future use on projects in later years.