Town of Fort Erie reports $539,000 deficit for 2023

Exemptions to development charges that weren’t budgeted for are the main driver of the Town’s small 2023 deficit, a report to council said.

Councillors received the staff report at the August 26 council meeting. It outlined the financials of 2023, which were audited by Grant Thornton LLP. A $1.9 million deficit that came as a result of development charge exemptions that weren’t budgeted for was mostly offset by other factors. However, it still led to the $539,000 deficit for the general levy.

“There are many offsetting factors, such as additional supplemental tax revenues, penalties and interest on taxes, planning fees, and so forth, however, sufficient additional revenues/savings were not identified to offset the DC exemptions in their entirety,” the staff report said.

As is the Town’s policy the deficit was funded through the General Levy Rate Stabilization reserve fund.

The report also noted other areas where reserves were used to fund purchases, including money taken from the Emergency Management reserve to pay for “costs primarily related to Winter Storm Elliot” as well as a few other purchases that were in the operating budget but that the staff report said “appeared Capital in nature.”

As such the report also recommended approving amendments to the 2023 capital budget to include:

• $37,000 from the Office Furniture and Equipment reserve to pay for office furniture upgrades,
• $18,000 from the Fleet Equipment Replacement reserve to pay for a cemetery utility vehicle, as well as
• $16,000 from the Facilities Maintenance reserve and
• $44,000 previously approved from the Emergency Management reserve to fund water tank, boiler and fire panel replacements at a total cost of $60,000.

Beyond the general levy, the report outlined a surplus for the wastewater budget of $400,000 and a deficit in the water budget of $200,000.

“The wastewater surplus was primarily a result of grant funding received that was not budgeted and savings in wages and benefits and materials and supplies,” the report said. “Wastewater flows for revenue billing purposes were 2.1 (per cent) lower than budget.”

That surplus was transferred to the Sewer Rate Stabilization reserve.

Regional treatment costs that were higher than budgeted for led to the $200,000 deficit in the water budget, the report said.

“Cubic metres treated by the Region were 5.1 (per cent) higher than budgeted. Water flows for revenue billing purposes were 0.7 (per cent) lower than budget,” the report said. That deficit was also funded through a stabilization fund.

Councillors had little to say about the report. Mayor Wayne Redekop asked about some discrepancies with regards to development charges, which Treasurer Jonathan Janzen explained as mostly the result of timing.

“The collection of the development charges aren’t recognized as revenue until the related activities are incurred,” Janzen said.

Redekop also thanked Deputy Treasurer Karlee Griffin for preparing a report that was more understandable to a layman than is often the case.

“(The report) is very reader friendly, which isn’t always typical of accountants,” Redekop said.

Stay Informed

Events, offers, contests, and breaking news, all delivered straight to your inbox.

Please enable JavaScript in your browser to complete this form.

Subscribe