city of regina mid-year financials show a projected $2.45m deficit
"in order to reduce our budgets, we would need to reduce our services," said kurtis doney, deputy city manager of city operations.
sep 13 2024
3 minute read
mosaic stadium sits under cloudy weather on friday, september 13, 2024 in regina. the saskatchewan roughriders owes the city of regina $1.3 million in unpaid rent from the two years covid-19 paused the cfl and mosaic stadium's anchor tenants idle, and the city is considering waiving the debt.
kayle neis
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regina leader-post
the city of regina has projected a $2.45-million deficit by the end of 2024, based on expenses anticipated and accounted for by administration.
a mid-year financial report was presented to the city’s audit and finance committee tuesday, outlining projections on operational and capital spending for the next six months.
according to the report, the deficit is due to an increase in revenues offset by a two-per-cent variance in expenses and $1.2 million in transfers from operating budgets into several reserves under their minimum balances.
should the deficit persist at year’s end, administration said solutions to address the issue will be provided, as cities are legislatively required to deliver balanced budgets.
options could include accessing funds from the general reserve or adjusting the 2025-26 budget to include a deficit forecast.
acting deputy manager of financial strategy ted schisler said close attention is being paid to overspending, and administration will have a more concrete plan closer to delivering the 2025-26 budget this december.
speaking at tuesday’s meeting, mayor sandra masters asked administration if there is a current plan to move the deficit closer to zero sooner than the end of the year.
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“i don’t think it’s getting better unless it’s being managed,” she said.
“in order to reduce our budgets, we would need to reduce our services,” explained deputy city manager of city operations kurtis doney. “at that amount, i think you’d have substantial service impacts and i would look to council for direction on that.”
kurtis doney, deputy city manager of city operations, speaks during a press conference on april 25, 2022.
michael bell
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michael bell
council will consider the report on sept. 25, and simultaneously be asked to approve writing off $1.33 million in outstanding rent owed by the saskatchewan roughriders.
the sum is due to the cancellation of the 2020 and 2021 cfl seasons amid the covid-19 pandemic, which resulted in the team not using mosaic stadium for regular operations. the riders owe $948,000 for 2020 and $379,000 for 2021.
administration assured the committee that the city’s books were already adjusted last year to swallow this lost revenue.
“there will be no impact to the 2024 financial results as the expense for this item was incurred in 2023,” reads the report, which also outlined expenditures for capital projects expected this year from both the general revenue fund and utility fund.
at the end of june, actual expenditures from the general fund were $35.1 million (11.2 per cent of available funds), and $60.4 million (19.3 per cent) from the utility fund. forecasted spending for each is $198.8 million and $191.8 million, respectively.
inside that expenditure list is continued work to rehabilitate an emergency water infrastructure fix after a critical storm water pipe burst in july 2023. the rupture caused a large sinkhole in a nearby resident’s backyard. in order to maintain services, a temporary stormwater pond was dug in wascana centre and nine pumps were installed.
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in april, cbc saskatchewan reported that the city had spent a total of $1.45 million on the temporary fix to date.
doney said costs are still accruing in the form of rental fees for the pumps. coming down the line during budget deliberations this year will be a $15-million ask, spread over two years, to “implement the permanent solution.”
“what you will see in the budget request is going to be a $5-million request in 2025 and a $10 million-request in 2026,” said doney.
other contributors to the standing deficit are spending overages attributed to emergent asks, staff turnover , and employee shuffling among departments to cover vacancies, said administration.
committee member robert humphries suggested asking city council to implement a hiring freeze in 2024 to forcibly lower staff-related expenses.
“it could be problematic in certain areas,” schisler warned.
he said there is currently a one-per-cent vacancy rate across departments, equal to about 30 positions.
city council already directed administration to curb overtime expenses earlier this year after learning the city has paid $26.9 million more than budgeted in overtime since 2018.
the motion was ultimately changed to have city council ask instead for a plan from administration on how the deficit could be mitigated by oct. 9.
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