City of North Battleford Finance Director Steve Brown gives his report at council's meeting Aug. 19. (Angela Brown/battlefordsNOW Staff)

By Angela Brown

Financial update

City takes new direction to make up for financial challenges

Aug 21, 2019 | 5:58 PM

Money was on the table at North Battleford city council’s meeting, as lawmakers heard the city is facing some financial challenges.

The city saw an overall surplus that was just shy of $2 million in 2018. Finance Director Steve Brown said the 2018 surplus was “a good number,” however, he noted in 2017 the surplus was about $2.5 million.

When looking at operating expenses for 2018, wages and benefits represented the highest cost.

Brown presented the 2018 financial statement long-term analysis that shows the city saw expenses increase more than revenues over the past five years.

Brown said from 2014 to 2018 revenues rose by 9.5 per cent, but operational expenses increased by 13.1 per cent.

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He said 2018 was a challenging year and it is anticipated those challenges will continue in 2019.

“It confirms some of the corrective actions” that the city is taking this year, he said. “But it is no stretch in saying the city is in dire straits. If you kept going down this path every year it would be more challenging. But it is fixable, 100 per cent.”

Following council Mayor Ryan Bater said the city’s revenues are going up, just not as fast as expenses.

“The analysis that was prepared by the director of finance and delivered to council tonight painted a picture that is quite stark…,” the mayor said. “Expenses are outpacing revenues. This has been a concern of council since the beginning of this term.”

Administration’s report shows that over five years the city’s net financial asset position, which is in a negative position, has dropped considerably since 2014. The finance director said having a negative amount means there are more liabilities owed than are in the bank, which is not uncommon for a municipality. (Angela Brown/battlefordsNOW Staff)

Bater said the city’s 2017 budget was faced with massive cuts from the provincial government that had an impact on its finances. He said one year ago, council tasked administration to deal with the challenge.

“They have been working hard for the last year on doing just that – not only painting a clear picture for council, but also taking corrective action to turn the direction of the city,” Bater said.

He said the task involves a lot of difficult decisions, at both the management and governance level, and that work will continue.

Administration’s proposal to look at developing a municipal impound lot and contract a towing firm was one idea as part of the city’s efforts to help increase revenue.

“We’re not done,” the mayor said of the city’s work ahead. “City administration is still looking at creative and innovative ways to change that direction.”

He said it is important for council “to have a clear understanding of where we are going, so that when we change our direction we know where we are going to be.”

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angela.brown@jpbg.ca

On Twitter: @battlefordsnow