City more than $3M in the black

Wayne Moore - Jun 2, 2009 CASTANET:

The City of Kelowna has a budget surplus of nearly $3.1 million for the fiscal year ending December 31, 2008. Special Projects Manager, Lynn Walter, says the 2008 surplus amounts to 3.5% of the total 2008 tax demand. "The city is not allowed to budget for a deficit, so we try and budget for a surplus less than 5% of taxation," says Walter. Walter told council Monday three main areas contributed to the surplus, including $1.5 million in higher than anticipated investment income, $700,000 in savings from Works, Utilities and Engineering projects and $800,000 in savings in salaries and wages. "The report also explains where surpluses are being expropriated to as recommended by the audit committee. It should be noted those recommended appropriations are consistent with the 10-year capital plan and the 2009 financial plan."

Walter says funds will be distributed as following:

• $95,000 - General Fund Surplus
  
• $600,000 - Arterial Roads Reserve
  
• $100,000 - Non-Arterial Roads
  
• $500,000 - Snow Removal
  
• $400,000 - Civic Facilities
  
• $100,000 - RCMP Building
  
• $500,000 - Parks Purchase and Development
  
• $400,000 - Off-Road Bikeway
  
• $200,000 - Financial Major Systems
  
• $200,000 - Fringe Benefit Load.