2015 Year-End Accountability Report – Priorities and Finance
March 15, 2016 administration will be presenting the 2015 Year End Accountability report to the Priorities and Finance Committee. I would like to focus on the finance numbers within the Executive Summary and lay-out what they mean and the positive/negative impact on our budget.
2015 ended with positive total savings of $86M (this includes the Budget Savings Account Reserve) Corporate Program Savings = $54M
• Negative revenue (-$20M & - $3.4M AB grant
) from franchise fees revenue from Atco and Enmax (lower gas and electricity rates)
• Corporate revenue contingencies positive $29.2M
• Contingency for utilities not required – positive $13M
• Lower net contingency for salary and wages overall (positive $19M
• Higher investment income (interest) – positive $9.8M
• WCB rebate higher - positive $2.7M
• Department contingencies/other corporate – positive $3.7M Business Unit Operating Savings = $32M
• Not filling vacant positions – positive $17M
• Savings on fuel and court fines- positive $4.0M
• Lower insurance claims – positive $3.8M
• Transit Fare revenue increase due to mild winter – positive $3.7M
• Reduced spending in infrastructure & Information services – positive $1.5M
• Assessment filing reduction – positive $1.1M
• Small business unit positive variances on budget – positive $1.0M Where does the $86M go now?
• As per Budget Saving Account Reserve - $30.3M deposited
– 50% to business units and 50% Corporate Initiatives- off sets negative variances
• $55.7M deposited
to the Fiscal Stability Reserve (FSR-Rainy day fund) uncommitted balance of $373.5M = 12.2%
(target 5%-15%) this does not include the $100M for flood mitigation. Capital Budget Savings
• Key to note, $73.6M was saved
in 2015 executed capital projects -This was due to good structured management of projects and lower pricing because of economic environment.
The above numbers reflect strong savings and efficiencies, which will give Council an opportunity to review the 2017 & 2018 budgets.
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