By Chris Lewis/September 9, 2021
The City of Mount Pearl is doing well in terms of its finances.
During the most recent meeting of council in the City of Mount Pearl, held on Tuesday evening, Sept. 7, councillor Bill Antle took some time to speak to the City’s financial situation.
He said during the meeting that it was a common occurnece for council to provide what he was calling a mid-year financial update.
“Last December, we presented the 2021 budget for the City of Mount Pearl,” Antle said, stating that this budget in particular was a unique challenge for Mount Pearl as they maneuvered unexpected challenges like the COVID-19 pandemic.
He said the budget process last year took some eight months to complete, and wanted to ensure residents that the City has maintained its focus on the best long-term plan possible.
He described the city’s financial position as “solid.”
“We continuously monitor our revenues and expenditures to ensure we maintain a balanced budget,” he said.
As of July 31 of this year, the City has collected 99 per cent of taxation revenue, which he said is the City’s primary source of revenue.
"While our taxation revenue is on target, our goods and services on municipal revenue numbers are slightly down from where they were projected,” he said. “The realities of COVID-19 require significant changes to all city facilities, including closures, reduced programming, reduced rental revenue, and this impact has resulted in a decreased revenue by 20 per cent. Or, $254,000.”
Municipal revenues, he added, are also down this year due mainly to an increase in permit applications and a lower than expected amount of traffic violation files.
He said the City is expecting this revenue to be down by 49 per cent against the target, which comes out to an estimated $537,000.
“That being said, overall the City is projecting to collect 97 per cent of all revenue, despite the impact of COVID-19 has had on our operations this year,” Antle said. “In budget 2021, the City reduced operating expenditures by $2.5-million in an effort to balance a notable projected decrease in revenue.”
From that, Antle said the City has reduced operational spending throughout the year, which has controlled costs and subsequently ended up with the City, so far, spending 54 per cent of their city operating budget so far.
“While we focus on controlling costs, we maintain our commitment to advancing our mission, leading the way as a family oriented and business friendly city, providing quality services,” he said, adding that the City has invested $7.5-million so far this year in capital projects, and continues its investment in a digital transformation.
On top of that, Antle reported the City had committed some $350,000 in operating subsidies for various organizations, including Admiralty House, the city’s Senior’s Independence group, and the Mount Pearl Sports Alliance.
“There was another $750,000 allocated to developing a new splash pad and skating rink at the recently announced civic centre,” Antle said.
“Over $2.3-million were added to our fleet renewal, allowing us to maintain service standards and important key work such as snow clearing and fleet maintenance.”
The last thing Antle had mentioned was an investment of $175,000 into the implementation of “important initiatives” outlined in the City’s employee engagement plan.
He also stated that the budget process for 2022 has begun, and he is confident that the City will have what he considers a forward-looking and fiscally responsible budget.
“As you can see from our capital expenditures, we are working hard to build a city that people want to live in and work in … Throughout the course of this year, we will continue to manage and monitor our revenue and expenses. We’re committed to a balanced budget and at present are not projecting a deficit, which, of course, is subject to change.”