Budget Update Summary November 2016
In recent Council discussions regarding the overall ongoing City financial position, it was clear to me that there was a lack of awareness and understanding of the monthly financial report (Executive Information status report).
I thought it would be beneficial to post the monthly summary with a very brief synopsis of the year-to-date results. It’s important to note that some specific results in some departments may vary depending on the timing of the expenditures.
Rest assured, the City Administration management has been adjusting budgets and expenditures all year long, finding over $180M in ZBRs (Zero Based Reviews) and cuts (list to follow from Admin).
As of November 30,2016, the total City of Calgary position was a positive (under budget/savings) of $41.9M.
Total business unit savings of $20.3M were recognized. This was a combination of $5.9M (SNIC), lower fuel costs, less overtime - $4.4M, staff vacancies savings - $4.8M, Councillors’ Office - $1.7M, LED lighting - $1.0M, and misc. various small savings - $1.3M.
Corporate Programs contributed a total savings of $21.6M (higher investment return - $5.3M, lower employee benefits - $9.2M, return on applications - $7.0M, lower franchise fees -$.1M offset).
Again, a reminder that the $41.9M savings is year-to-date; this can change upon receipt of the last month of December’s financial results. As it stands now, the PROJECTED year end variance is $39.6M.
All positive variances are automatically directed to the Fiscal Stability Fund – known as the “Rainy Day Fund”.
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This content represents the personal views and opinions of the Councillor and should not be taken as a statement of policy of The City of Calgary. The inclusion of any external content does not imply endorsement by The City of Calgary.