Thanks in large part to a big land sale and various fee hikes, the City of Regina finished 2012 with an $8 million surplus.
According to an administration report going to the city's finance and administration committee Tuesday, the extra cash will go into the city's reserves, meaning it could be spent in a variety of different ways.
Although spending from the city's general operating account turned out to be $323 million, about $11 million higher than budgeted, revenue was off by an even larger amount.
The city had budgeted to take in $312.5 million, but ended up with $331.5 million — an extra $19 million.
Meanwhile, Saskatoon previously announced that it too had a big surplus in 2012: $5 million. Mayor Don Atchison said the extra money would go to roads, bridges and snow removal.
Where the surplus came from
Here's where most of the City of Regina's extra revenue came from:
- $7.5 million from the sale of residential land in the southeast.
- $3 million gain on the sale of bonds.
- $9 million from fee increases (including garbage and transit).
(A $1 million drop in internal cost recovery revenue reduced the extra revenue total.)
Here's where most of the extra spending went to:
- $10 million in transfers to reserve funds.
- $2 million in external expenses, including equipment rental and Evraz Place costs.
- $2 million in extra professional and external expenses (city report doesn't explain this).
(Lower-than-expected costs for salaries, benefits and debt servicing costs reduced the extra spending total.)