Edmonton city councillors received an update about the city’s public purse Tuesday as administrative officials told council the city was sitting on a $36-million surplus as of June 30.
“Overall, we’re in pretty good shape for 2016,” Mayor Don Iveson said after receiving the update.
City administrators told council their fiscal projections suggest the city will still be holding on to a surplus by year’s end but that it will likely be a little less than $20 million at that point because of future expenditures.
Coun. Mike Nickel suggested within the context of Alberta’s economic downturn, he doesn’t believe the projected surplus is a good indicator of the city’s economic well-being.
“It’s even worse than people think,” Nickel said. “I get frustrated with our economists that are in the region here that always try to give you this optimistic picture.”
He added he predicts the city will be facing significant fiscal pressures for the foreseeable future.
READ MORE: Edmonton ends 2015 with $27M surplus
“I would say we’re at 80s bad now, not 90s bad, and for those old-timers out there who know what 80s bad looks like, it’s very, very serious.”
“I remain confident about Edmonton’s economic future,” Iveson said, adding he believes Edmonton’s competitive labour market makes the city attractive for investors. “There’s no doubt that there are businesses and families struggling with the lower commodity price, but overall, we continue to see growth in jobs – we continue to see an influx of people.”
Iveson said that even though he’s bullish on Edmonton’s economic prospects, he also believes council needs to be vigilant in terms of making sure the city is run efficiently and cost-effectively and that service level and program reviews play an important role in accomplishing that.
The mayor also suggested fiscal management combined with a mild winter contributed to the city’s current surplus. However, city officials told council one major snowfall event could cost the city upward of $40 million.
Nickel suggested he was concerned news of the surplus might leave the city complacent as it deals with the ongoing fallout of the slide in oil prices that began in 2014.
“I’m always the guy saying, ‘You know what? You’ve got to get ahead of your problems not behind your problems and react to them,'” he said.
Iveson added the city is optimistic the province will reimburse it for its Fort McMurray wildfire relief efforts.
READ MORE: How Edmonton is helping Fort McMurray wildfire evacuees
Watch below: Fort McMurray residents began arriving at the Northlands evacuation centre on may 4, 2016. Kent Morrison filed this report at the time.
According to Iveson, the city’s response to the disaster cost approximately $500,000. The cost to Northlands, which served as an evacuee centre, was an additional $700,000.
-With files from Fletcher Kent and Caley Ramsay.
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