The release of the Second Quarter Financial Update shows the City of Penticton’s operating budget remains on track, despite dealing with increased costs due to inflation.
The City’s financial position for the second quarter has total revenues expected to be higher than budget by 5.7 per cent, and operating expenses are anticipated to be 0.4 per cent lower than budget.
Council will receive a report on the budget along with an update on this year’s business plan at their meeting on September 12, 2023.
At the same time, Council will be asked to approve changes in the budget to allow for the draw of from the Growing Communities Fund of $222,000 for inflation increases for indoor soccer facility roof bubble and rental equipment and $246,500 for significant cost increases for electrical and foundation works on the Fire Hall 2 - two bay garage project.
Of the 35 strategic priorities and initiatives outlined in the City’s business plan, 30 initiatives are on track to be completed by the end of 2023. Three initiatives are delayed in the second quarter report of 2023 with reasons cited for delays include capacity challenges, staffing vacancies and conflicting schedules.
Highlights:
Planning for the 2024 budget is underway and open houses are planned for October before deliberations in November. This budget will contain the second year of the tax deferral made by the previous Council that is being phased in at 3.3 percent per year over three years and utilizes surplus reserves to offset the deficit until fully phased in.