MAPLETON – Township finances are trending toward a deficit position for 2022 according to a budget variance report presented at the Sept. 13 council meeting.
The report from Mapleton director of finance John Morrison projects a year-end deficit of $353,202.
However, the report notes projections are subject to “significant refinements” as the fiscal year progresses.
The report indicates general government expenditures are trending towards a deficit of $163,539 with IT expenditures accounting for $47,983 of that figure.
In the first quarter, the township transitioned to a cloud server and additional IT support was required. IT expenditures moderated downwards in the second quarter, the report notes.
Election-related expenses contributed $44,936 to the general government deficit. To offset these election expenditures the budget anticipates a transfer from the election reserve of $48,000.
Protection to persons and property is currently trending towards an unfavorable variance of $50,549. The report notes that the township’s building department explored an office addition and authorized that an architectural drawing be made at a cost of $25,865.
“This project has been deferred indefinitely,” the report notes.
Transportation services are also trending into an unfavorable variance. However the report points out seasonal adjustments “can and will make significant changes to this projection.”
The township’s environmental services budget may either be in a surplus or deficit position by year-end, the report states, noting actual expenditures are typically high in the first quarter due to the township’s policy to transfers reserves at the beginning of the year and the bi-monthly billing cycle for water and wastewater services, which provides only 38 per cent of the expected annual revenues by the end of the second quarter.
Recreation and cultural facilities is trending to an unfavorable variance of $45,512. But the report notes that, again, “seasonal impacts will impact the projection.’”
“Is there anything we can do at this stage of the game to reduce that deficit?” asked councillor Dennis Craven.
“We don’t know yet what kind of assessment growth that we’re going to achieve this year. That could reduce the deficit considerably once we account for that growth,” Morrison explained.
Craven asked if there were any major purchases or projects council should consider delaying to reduce the potential for a deficit.
“I don’t see anything changing significantly,” Morrison replied.
“I would remind council that this is part of a three-year budget and as of the first two years we already have a $500,000 surplus. So, if this (projected deficit) was to come to pass, we’d still be in a surplus position over the three years.”
Council accepted the report as presented.
