City council received a long range financial forecast at its meeting Oct. 13. (Angela Brown/battlefordsNOW Staff)

By Angela Brown

Financial forecast

N.B. financial forecast shows positive progress with some challenges ahead

Oct 14, 2020 | 5:12 PM

North Battleford city administration gave council a long-range outlook on finances in a report that covers the next 10 years at its meeting Tuesday. The aim of the report is to help with future planning.

Mayor Ryan Bater said the city managed to find efficiencies prior to the pandemic which helped its bottom line.

“Two years ago the city saw a change in direction in terms of our finances,” he said. “We’ve been able to see about $2 million in operational savings. That has put the city in a much stronger position.”

The city expects to encounter some challenges ahead for various factors, including anticipated higher costs for the RCMP contract.

As well, the city may face possible increased costs for policing if the city’s population reaches 15,000 in the next census.

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The report indicated the RCMP expect to ask for five additional officers in North Battleford over the next five to 10 years.

The city anticipates considerable capital costs in the future. Administration estimated over the next 10 years there could be as much as $150 million in capital needs identified including Underground Pipeline and Asphalt Replacement (UPAR) work addressing aging infrastructure.

As far as the impact of COVID-19 is concerned, administration is looking at ways to respond to some of the financial tests ahead.

City Manager Randy Patrick said fortunately the city has taken a conservative approach to managing its finances.

“There are some significant challenges that we are facing,” he said. “Again, we are in a much better position I believe than we were a couple of years ago to weather these storms.”

Among some of the hurdles ahead are an anticipated reduction in the Municipal Revenue Sharing grant, due to market fluctuations.

On the positive side the city is continuing to reduce its long-term debt.

Finance Director Steve Brown said in his report the financial impacts of COVID-19 are anticipated to continue for the next few years.

By completing a review of the city’s finances over a 10-year period, he said the city can also look ahead for potential opportunities such as funding partnerships for the future to plan for projects.

Where budget issues are concerned, Brown said, the city’s finances for 2020 are “trending favourably,” as expenses are down and revenues are up, even with the impacts of COVID-19 on the city’s finances.

Some more short-term required capital projects outlined for 2021 are for a roof replacement at the Dekker Centre and light replacements for the Centennial Park ball lights.

The city’s recreational services continue to be impacted by COVID-19 due to significant lost revenue.

Brown noted in his report the federal Safe Restart Canada Plan funding that amounts to $853,947 for the city is not reflected in the current financial report period ending August 31 as it was received in September.

He said while the next couple of years could be challenging for the city, “by and large 2020 will finish in a very strong financial position.”

Brown also indicated the city has a surplus of $1.6 million from prior years that may help absorb some of the impact of anticipated increased RCMP costs in particular over the next two years, as an option for council to consider in the future.

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angela.brown@jpbg.ca

On Twitter: @battlefordsnow