Despite the on-going pandemic, the City of Lacombe is pleased to announce that they are projecting a modest budget surplus for 2020.

The second-quarter report, which covers expenses for the first six months of 2020, was presented at the Monday, August 31st's council meeting and accepted as information. 

Lower municipal expense, higher investment income, and financial measures taken by council related to COVID-19, are all factors related to this predicted surplus. 

“The COVID-19 pandemic has resulted in a significant shift in the City’s budget process compared to previous years, and we extend our gratitude to City staff for providing our citizens with this update. The City will continue to be diligent in ensuring the economic challenges of the pandemic are as minimal as possible,” Mayor Grant Creasey said.

Property tax and utility collection breakdown:

  • In March 2020, Council approved COVID-19 relief measures aimed at assisting residents financially impacted by the pandemic.
  • As of June 30, the City’s total outstanding taxes owed to the City was $6.6 million, compared to $1.5 million in 2019. This equals approximately 69% collected of total taxes levied, which is down from 95% in 2019.
  • Administration expects to collect most of the outstanding tax balances in the fourth quarter of 2020.
  • Total outstanding utility revenue in 2020 is $1.2 million, compared to $1 million in 2019. Utility arrears balanced has almost tripled from $119,000 in June 2019 to $337,000 in 2020. 5432 56th Avenue Lacombe, AB T4L 1E9 (403) 782-6666 www.lacombe.ca
  • Administration expects to collect most arrears, however, the risk of non-collection has increased.

Revenues and expenditures 

  • Revenue is expected to be higher than what was predicted at the spring budget adjustments, at 0.4% which equals $13,641.
  • Expenditures are also trending under budget by 0.95%, equalling $219,619. The City expects added expenditures over the summer months due to seasonal staff, project work, and equipment purchases, which will bring the budget in alignment with forecasts.

“City of Lacombe Administration is pleased to be able to present the Q2 Financial Report to Council. Due to challenges resulting from the pandemic, this report represents the fiscal responsibility that was maintained during the first half of the year. Currently, the City is trending to be in a surplus position at the end of the City’s fiscal year,” CAO Matthew Goudy said.

The third-quarter report will be presented in November and covers expenses from July to September of 2020. The fourth-quarter financial report will be presented in April of 2021.