Region of Waterloo ends 2021 with $12.5M budget surplus
Posted Mar 31, 2022 08:10:00 PM.
The report was presented at the regional council meeting on Wednesday evening. Craig Dyer is the region's financial commissioner and confirmed the excess funds.
“The overall 2021 financial position resulted in a modest surplus of $12.5 million,” said Dyer. “$9 million through tax supported services, about $1.2 million for user rates and $2.3 million for police services.”
According to Dyer, this represents about 1.7% of property tax and revenues approved in the 2021 budget.
The council-approved surplus policy will be enacted for the excess funds that will be used to offset anticipated future budget pressures. This will be done by lowering reliance on debt financing.
“Approximately $7 million of the tax supported surplus will be used in the place of debt financing for various asset renewal projects in 2022.” Dyer said. “That will allow us to avoid debt servicing costs of approximately $800,000 per year for 10 years starting in 2023.”
Dyer added that thanks to the provincial and federal governments, their overall 2021 operating position was offset to a great extent due to financial support.
“The region is grateful for these supports and it's anticipated that additional assistance will be needed in the future, particularly with respects to the emergency shelter system and public transportation.”
Despite the financial aid provided, the pandemic did heavily impact the budget.
“COVID-19 restrictions, supply chain issues, a few scheduling delays and some project changes did impact our ability to complete capital projects as contemplated in 2021,” said Dyer.
He added that although the setbacks, they recorded approximately $375 million of capital projects investments and were able to make significant progress on a number of important projects. These projects included the Grand River Transit maintenance and storage facility on Northfield Drive in Waterloo and a number of different upgrades to regional facilities and housing units.
Dyer finished off his address by saying the year-end audit is nearing completion and the 2021 audited financial statements will be presented to the audit committee on April 21 and at a regional council meeting on April 27.
