BARRHEAD - The Town of Barrhead added roughly $1.2 million into its capital reserves in 2023.
Corporate services director Jennifer Mantay said during her quarterly financial report at March 12's council meeting that the unexpected windfall resulted from several factors.
"We did end up with a preliminary operating surplus of just over $800,000, or about five per cent of the operating budget," she said.
Mantay said $365,000 of the surplus was due to the province's requirement that municipalities change how they plan to close or retire certain assets (asset retirement obligations).
"[Asset retirement obligations] are things the municipality will have to spend a lot of money on for their disposal, such as the [Barrhead Regional Landfill], or have buildings with asbestos, we have to start putting money away for the abatement".
Later in the meeting, Scott Ellerington of Ellerington LLP, the municipality's auditor, identified the RCMP detachment, bowling alley, and curling club as included in the new asset retirement obligation category.
Mantay also noted that the municipality received about $160,000 of unbudgeted revenue for the Barrhead Regional Fire Services (BRFS) contribution to the provincial wildfire effort in the spring of 2023, and the town also spent $200,000 less than initially budgeted for staffing costs.
She said the main reason for the latter is that several municipal staff members were out on disability in 2023.
Mantay also added that the municipality saw operational savings in 2023, more than $100,000 less what was initially budgeted for.
"That is because we did not spend as much on sidewalks, gravel, and asphalt," she said.
Mantay said higher-than-budgeted interest rates helped bring in an additional $234,000, and the Barrhead Regional Water Commission (BRWC) contributed $91,000 towards upgrades for the municipality's wastewater lagoon.
"In the end, our revenues were 102.08 per cent of our budget," she said.
Coun. Rod Klumph asked if any additional monies from the surplus had been transferred to the Agrena.
Mantay replied that they had, adding about $106,000 to the Agrena reserves.
She said another area that received a significant contribution to its reserves was common services at $250,000.
