Cost overruns push Summerside into red
Jessica Doria-Brown | CBC News | Posted: July 20, 2016 10:47 AM | Last Updated: July 20, 2016
Revenues are up, but expenses are up even more
The City of Summerside, P.E.I., says there's work to be done to get its budget balanced by the end of the year.
As of the end of May 2016, the municipality is running over budget.
Coun. Frank Costa, chair of the finance committee, delivered a snapshot of revenues and expenses for the first five months of 2016 at council's regular monthly meeting Tuesday night.
"Revenues were higher than projected; expenses were higher than projected as well," said Costa.
Revenues are about $160,000 more than the $8.3 million expected by the end of May, but expenses were up $250,000. Those expense overruns included.
- Financial services more than $60,000 over.
- Police services more than $170,000 over.
- Culture Summerside more than $30,000 over.
- Community services almost $30,000 over.
- Public works almost $30,000 over.
Higher costs in those departments were offset somewhat by significant savings in general government expenses, economic development and in technical services.
Investing in new opportunities
Costa said balancing the budget will be a matter of shifting priorities when new opportunities arise.
"We've invested in some things that have come up with us, like the Central Street project, the development of that new business, which is a call center," he said.
"Those things, they were being developed but weren't in place when budget actually came down."
Costa said council remains confident that the municipality will meet its budget projections for 2016.
"There's a lot of confidence in the city about our financial position," he said.
"We're following projects we hope will enhance the city's position even more."
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