First Quarter Budget Results Reveal Slight Variance

The 2016 first quarter budget projections to year-end show a 0.27% negative variance from the $464.75 million total budget.  This is an early projection and subject to change through the year. As such, City staff will be taking reasonable measures to deliver a balanced budget at year-end.

“This projected shortfall is early in the fiscal year and open to many variables which may change over the course of the year,” says Kerry Tarasoff, CFO/General Manager of Asset & Financial Management. “It is based on the information we have to the end of the first quarter, so by examining our numbers now, we can look at ways to recover costs and bring in a balanced budget.”

To meet its Strategic Goal of Asset and Financial Sustainability, the City stays focused on accountability, transparency, and efficiency. Quarterly status reports help ensure that City Council and the Administration are aware of any emerging business plan, budget issues or challenges. The City is then better prepared to mitigate any financial difficulties which may result from unplanned events or emerging issues in 2016.

“We want to keep in mind this approach also helps us track the City’s progress on our initiatives and business plan, which is also reflected in our performance dashboard on the City website,” Tarasoff says.

Much of the first quarter variance can be linked to costs for increased street sweeping in the Business Improvement Districts and industrial areas, as well as less revenue from Transit fares shifting to discounted bus passes from regular fares.

The City is committed to the Strategic Goals of Continuous Improvement, and Asset and Financial Sustainability, and dedicated to: creating a more visible budget process, reducing revenue reliance on the property tax, providing financial information frequently and earlier so City Council can make informed decisions, and planning opportunities for residents to have their say to shape the 2017 Budget and Saskatoon’s financial future.