YORKTON - You might call it a case of positive Deja vu for Yorkton Council.
At its regular meeting June 23, Council was informed of a significant surplus for the city from its 2024 operations. Ashley Stradeski - Director of Finance, while citing the number remains preliminary in nature, noted that the city is looking at a surplus to budget of $1,666,908.
In 2023, the city saw an operating surplus is $1,900,918.
The surpluses are largely the result of higher than anticipated interest rates which have had a tremendous impact on the interest rates the city has received for both cash on hand as well as longer term deposits.
The big surplus in 2023 had Council debating what it should, or could do with the windfall cash.
While not going into detail, Council was already considering what to do with the new surplus June 23.
After allocating some of the surplus to reserves Stradeski said $1,020,549 would remain to go, at least initially, into the city’s ‘Rainy Day’ reserve.
The beginning balance in the ‘Rainy Day’ fund is $2,404,590, net of projects allocated. By depositing $1,020,549 to this the city will end the year with a balance of $3,425,139, he said.
That’s a huge number, and again the question looms what to do with the money.
One suggestion is that the city pay down debt, but Stradeski noted the city loans at present have positive rates.
In addition, the city’s debt level is small compared to its debt limit, so there is limited pressure to aggressively deal with debt.
Certainly you could spent the money on infrastructure. Drive around the city for half an hour and count potholes your vehicle bounces through would be testament to that.
However as large as the ‘rainy day’ fund seems to be, it’s actually not all that massive if you were to start paving a street.
Granted we are all aware that the renewal cycle the city is currently on in terms of replacing streets, sidewalks and other infrastructure is decades at best – in all cases longer than the expected life of the infrastructure.
However, $3.4 million would not move the needle in a discernible way in terms of long term renewal, and any street or sidewalk done with the money would benefit a particular area of the city, while the surplus was generated on interest on ‘overall’ city funds, so Council might seek a project with broader impact.
One solution might be a ‘legacy’ project. Something that would be for the entire community that would last for years as a recognizable investment of a rare surplus – the long ago suggested lights on the water tower, a piece of community art (Humboldt just unveiled one), or the previously discussed bike pump track come to mind.
If that is not to Council’s liking then the money is probably best socked away for that ‘rainy’ day – we know what happened to the waterworks in Calgary as a reminder of what unexpected costs a community can face.
Whatever, Council chooses to do, it is a good conundrum to consider as windfall surpluses are rare.
