City Hall

Ckl Reports Budget Surplus

At the June 20, 2023 Regular Council meeting, Carolyn Daynes, Treasurer, presented the 2022 Audited Financial Statements and Surplus Disposition Report.

Daynes commented in her presentation that the $4.5 million net surplus came from a variety of sources, namely:

• Investment income that benefitted from interest rate increases, $1.5 million

• Supplementary taxes, $580,000

• Surplus through group benefits, $1.3 million

• Sale of recycling materials surplus, $580,000

• Victoria Manor received additional pandemic grant funding, $500,000

In keeping with the growth trend across Kawartha Lakes, 2022 building permits exceeded estimations in the budget by $900,000. Building permits are legislated to be transferred into a reserve and are therefore not part of the $4.5 million net surplus. Prior to the pandemic, the municipality averaged $1.1 million in building permit revenue compared to 2022 total permit revenue of $2.7 million.

One of the driving factors that reduced the 2022 surplus was the heavy winter season. The overall expense incurred was $11 million, which was $1 million over forecasted cost. Vehicle fuel also increased significantly for all fleet including Fire and Paramedics, incurring expenditures of $760,000 over budget.

The surplus was allocated to build reserves and meet community needs as follows:

• $2 million to the Capital Contingency Reserve and $1 million to the Public Works Fleet Reserve to continue building reserves as part of the Long Term Financial Strategy

• $135,000 for Human Services Counselling Program as part of a matching funds grant from the Province

• In the 2023 budget deliberations, the following items from the 2022 surplus were approved:

• $1 million to the Ross Memorial Hospital for its capital program

• $200,000 for the 2023 Arts and Culture Resiliency Fund

• $150,000 to select arts and heritage organizations