WESTLOCK – Westlock County councillors have agreed to sock the nearly $1 million 2022 operating budget surplus into the bank.
At their April 11 meeting, councillors voted 7-0 following a recommendation from finance director Peggy Hardinge to put $315,567 into the general operating reserve, while $500,000 will go into the general capital reserve — at their March 28 meeting, councillors spent over 40 minutes listening Hardinge, while also peppering her with questions, as she detailed the draft 2022 operating variance report, capital projects progress report and reserve summary. And while the initial document showed a $946,900 surplus, which represented 4.32 per cent of last year’s total operating budget, a portion, $131,133.31, was subtracted to cover a five-year-old claim to the Disaster Recovery Program (DRP) of Alberta leaving the excess at $815,766.69.
“It looks wonderful, good job,” said reeve Christine Wiese, mirroring a comment from Coun. Stuart Fox-Robinson who made the motion for the transfer.
Hardinge told councillors April 11 that the county’s 2022 financial year-end audit is now complete and “no auditor adjustments or changes were required” — that document is expected to be back in front of councillors for approval at their final meeting of the month.
“So, the surplus remains the same as to what was presented recently,” said Hardinge.
As per the municipality’s reserve policy, the general operating reserve is funded by annual operating surpluses in excess of funding required to top up the financial stabilization reserve.
Hardinge noted that the financial stabilization reserve is “fully funded” and that the general capital reserve policy states that any draws that result in a balance below the minimum of $500,000 must be replenished over a maximum of three years.
“So, we have the ability to replenish those funds this year with the surplus,” said Hardinge.
Also included with Hardinge’s request for decision was the final 2022 operating variance report, capital projects progress report and reserve report — all, previously presented as draft documents, were covered in the April 14 edition.
“And there are no changes from what was previously presented,” she confirmed.
To achieve the surplus, the county generated $22,074,840 in revenue last year, while spending $21,127,940 with Hardinge noting the surplus was a result of “deferred projects and contracted services” — the municipality had initially budgeted for a break-even budget of $21,796,888 in revenue and expenses.
And while the county did end up in the black and was under budget in a variety of departments, Hardinge previously said they spent $1,009,449 on fuel and oil in 2022, which was over budget $284,699.12, while utilities were over budget by $16,662 as they spent $211,166.49.
Status of reserves
The county’s operating reserves, which includes subcategories for general, financial stabilization, computer replacement, carry forward, gravel reclamation, road maintenance, emergency management, cemetery, economic development, and insurance, opened Jan. 1, 2022, at $7,091,856.56 and ended the year at $7,879,677.
Meanwhile its capital reserves, which notes the subcategories general capital, capital work in progress, fire vehicle replacement, equipment replacement, building maintenance, municipal reserves, utilities, special levy, airport, industrial park, and land bank, started 2022 at $7,598,336.91 and ended at $8,240,582.52. In total, the municipality started 2022 with $14,690,193.58 in reserves and finished with $16,120,259.52.
