Edmonton city hall chalks up $31M surplus in 2017 operating budget

The city's2017 operating budget has registered a $31-million surplus, with savings on Edmonton snow removal due toa lighter year of snowfall credited for a large chunk of the windfall,a report released Thursday shows.

About $10 million less thanbudgeted was spent onclearing snow and ice. Snowfall in the first quarter of the year was below average, the financial and corporate services report says.

The city also saved money in staffing costs due todelayed backfilling, reduced overtime hours and unfilled vacancies.

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EPCOR, a city-owned utility, paid higher dividends to the city after it took over drainage services in 2017. Thataccounted fornearly $7 million.

The city saved $4.3 million from lower insurance premiums and claims.

The savings will go into the city's financial stabilization fund, unless directed elsewhere by city council.

Coun. Mike Nickel said the extra money should go toward lowering this year's municipal tax rate, pegged now ata 3.2-per-cent increase.

"I always asked that every year, and I'm going to ask that again," Nickel told CBCNews Thursday.

"We've got tostart turning the corner on this constant barrage of taxes and user fees because it's just becoming unaffordable to operate and to live in the city of Edmonton," he said."That's the message I've heard loud and clear."

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Redirecting the $31 million couldbringthe tax increase down closer tothe 2.5 per.cent range.Nickel said it would be worth doing.

"Whatever surplus we have at this point in time, tax relief is at the top of my agenda, simply because we've had oh my goodness over a decade and a half of constant tax increases. And what I heard at the doors inthe last electionis that people have had enough."

In 2016, the city had twice the operating surplus, at $64 million. Snow and ice removal savingscontributed $26 million of that.

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Tax notices are mailed to property owners at the end of May. The deadline to pay is June 30.

Council is slated to discuss the 2017 year-end financial results at a council meeting March 20.

Financial and corporate services recommends redirecting some of the surplusto several areas, including the bus network redesign, the transportation plan,affordable housingand to address the timing of payments forsome city projects.