A $1-million budget surplus is proof that Moncton politicians heeded a forceful financial wake-up call, according to the city's mayor.

Moncton Mayor George LeBlanc told the council on Monday night that the surplus is recognition of a lot of hard work since the new council took over after the 2008 municipal election.

"I can remember quite vividly, I believe it was my second day on the job when I was advised by our [chief financial officer] who sat me down and said we have a $1.8 million operating deficit and it's only May," LeBlanc said.

"So I can tell you that was a forceful wake-up call."

John Sanford, the city's auditor, said the surplus was made possible because the city's departments stuck to their budgets.

In addition, Moncton's finances were buoyed by a record year for building permits as well as extra revenues at the Magnetic Hill Zoo.

Sanford said the city was also able to get the provincial and the federal governments to cost share on many of its construction projects.

The city may be feeling some relief that the books are back in the black, but Sanford said the politicians can't let up.

Coun. Brian Hicks, one of the city's toughest critics on financial issues, was impressed with the financial picture painted by the auditor.

"I think this is the first time in 11 years I actually really agree with just about everything you've said tonight," Hicks said.

With the city's finances back in a surplus position, Moncton is earning praise from its auditor for future planning.

Sanford said at Monday night's council meeting that he's pleased the city is also putting money into reserves.

He said the council's decision shows responsible budgeting.