The City of Airdrie’s third-quarter operating budget has a shortfall of $361,266, partly due to costs associated with Airdrie Fire Services.
The City signed an agreement with the International Association of Fire Fighters union, Airdrie’s first union, last February. The agreement includes a retroactive pay increase dating back to 2010.
Director of Corporate Services Lucy Wiwcharuk presented City council with a report, detailing how the shortfall, which represents less than half a per cent of the 2012 operating budget, can be managed, Nov. 19.
“When quarterly variance reporting identifies a shortfall, we immediately look for opportunities to reduce spending to ensure we are able to maintain a balanced budget,” said Wiwcharuk, adding the shortfall was known in the second quarter, but the finance department advised council to wait before taking measures.
Council directed administration to make up the rest of the projected deficit within the 2012 budget.
We have to freeze spending in order to do that.”
Wiwcharuk said the City will pay $1.5 million – most of which can be managed within this year’s budget - more than expected to Airdrie’s 60 firefighters as a result of the union agreement.
Until year end, staff will freeze discretionary spending but carry on with purchases tied to existing contracts and spending required to meet safety regulations, legislation and council policy.
Position vacancies will not be filled until January when the 2013 budget comes into effect.
According to Wiwcharuk, City services will likely be unaffected by the freeze, given the relatively short period of time it will be in effect.
Mayor Peter Brown said residents won’t feel the pinch.
“Everything stays the same,” he said, adding fire services, garbage collection, snow removal and policing levels won’t change and no layoffs will occur.
“It is asking everyone (at the City) to watch their budgets. We aren’t spending anything we don’t need to spend money on,” he said.
Examples of discretionary funding include staff and council training and travel, said Brown.
According to a City press release, significant increases have also been seen in the cost of providing RCMP services. This service contract is a cost-sharing agreement between Airdrie and the federal government, with the City paying 90 per cent of the actual expenditures.
Year-end projections show a shortfall of $320,000. Staff was able to juggle funds within the existing budget to manage the shortfall.The City of Airdrie’s third quarter operating budget has a shortfall of $361,266, partly due to costs associated with Airdrie Fire Services.
The City signed an agreement with the International Association of Fire Fighters union, Airdrie’s first union, last February. The agreement includes retroactive pay dating back to 2010.
Director of Corporate Services Lucy Wiwcharuk presented city council with a report, detailing how the shortfall, which represents less than half a per cent of the 2012 operating budget, can be managed, Nov. 19.
“When quarterly variance reporting identifies a shortfall, we immediately look for opportunities to reduce spending to ensure we are able to maintain a balanced budget,” said Wiwcharuk, adding the shortfall was known in the second quarter, but the finance department advised council to wait before taking measures. . Council’s direction is for administration to make up the rest of the projected deficit within the 2012 budget. We have to freeze spending in order to do that.”
Wiwcharuk said the City will pay $1.5-million more – most of which can be managed within this year’s budget - than expected to Airdrie’s 60 firefighters as a result of the union agreement.
Until year end, staff will freeze discretionary spending, continuing forward with purchases tied to existing contracts and spending required to meet safety regulations and meet legislation and council policy.
Position vacancies will not be filled until January.
According to Wiwcharuk, City services will likely be unaffected by the freeze, given the relatively short period of time it will be in effect.
Mayor Peter Brown said residents won’t feel the pinch.
“Everything stays the same,” he said, adding fire services, garbage collection, snow removal and policing levels won’t change and no lay offs will occur.
“It is asking everyone (at the City) to watch their budgets. We aren’t spending anything we don’t need to spend money on.”
Examples of discretionary funding include staff and council training and travel, said Peter.
According to a City press release, significant increases have also been seen in the cost of providing RCMP services. This service contract a cost-sharing agreement between Airdrie and the federal government, with the City paying 90 per cent of the actual expenditures. Year-end projections show a shortfall of $320,000. Staff was able to juggle the existing budget to manage the shortfall.
