Trail remains on target with budget

The general revenue fund stands at about $5.7 million, which is up about $240,000 from this time last year.

There hasn’t been too many bumps or bruises to the city’s financial outlook this year.

A freak snowstorm or utility line failure could still throw a wrench into the mix, but annual revenues are mostly on target, according to Trail’s third quarterly report.

The general revenue fund stands at about $5.7 million, which is up about $240,000 from this time last year, though with the airport running at a $70,000 deficit, the surplus sits at $5.6 million.

“Overall, third quarter results were positive and all three operating funds are currently in good shape,” said David Perehudoff. “As far as financial performance is concerned when compared to the approved budget.”

With additional income from logging sales, he explained, total general revenues should exceed $25 million, including property tax collections for other governments.

Sources that generate their own income such as tax penalties, licenses and permits, rentals, parking and interest income,  are subcategorized into another revenue stream.

The third quarter overview shows a few areas that aren’t meeting projected revenues, such as money garnered from business licenses and building permits.

That subcategory is down considerably, because to date, Trail has collected about $10,500 in fees compared to $46,000 in 2013.

“We only budget $50,000 coming from this category so the year-to-date decrease will not have a material impact on the final results of operations if permit fees do not pick up in the fourth quarter,” Perehudoff explained.

He maintains that business licence fees remain fairly consistent and the city anticipates being on target with respect to revenue and total business licences issued by year end.

What is noteworthy, is the nosedive in the number is industrial permits issued to date.

A review of building permit values indicate total permits issued to date amount to $3 million compared to $12.6 million last year, noted Perehudoff. said “Much of the reduction can be attributed to a reduction in industrial permit values.”

Other revenue sources that are down compared to 2013, include a $20,000 drop in parking fees, and a $27,000 drop in property rentals. The latter is attributed to adjustments in the lease on the Trail and Greater District RCMP Detachment.

With no historical values in place, the city didn’t budget for TRP income this year. The associated increase in the Trail Aquatic Leisure Centre’s sales (about $60,000) is consistent with people paying higher recreation rates to utilize the services following no agreement in place with Beaver Valley.

“The monies are considerably less that what the city previously received,” said Perehudoff. “In this regard, as noted in the report, it brings about the question of service levels and sustainability and if council will make any adjustments to the budget next year if there are not agreements in place.”

Other income sources such as sale of Violin Lake timber weren’t factored into the 2014 budget, though it is expected to exceed $350,000 by year-end and should offset revenue shortfalls.