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Extra snow clearing, unexpected utility fees hiked public works’ Q1 expenses by $430K

The department saw expenses of $1,840,018 from Jan. 1 to March 31 versus $1,410,832 during the same period last year, a difference of $429,186, according to a report about city hall’s first-quarter activities presented during the May 23 regular meeting.
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(file photo)

Expenses in the public works department were more than $400,000 over budget during the first quarter of this year because of extra winter activities and a “misallocation” of power costs. 

The department saw expenses of $1,840,018 from Jan. 1 to March 31 versus $1,410,832 during the same period last year, a difference of $429,186, according to a report about city hall’s first-quarter activities presented during the May 23 regular meeting.

One major increase was in snow operations, where the city budgeted $1,086,908 for snow clearance this year and had spent $550,449 — 51 per cent — during the first three months of 2023. 

City hall has likely used 65 per cent of that budget because of snow-clearing activities after March, said finance director Brian Acker. Since there is still half a year to go, the municipality would likely be over budget but has a reserve account from which to pull extra money.

The second area of increase was in the Other Services category, which was 259 per cent over budget due to a “misallocation” of power costs that had to be redirected to other areas, the first-quarter report said. The department had budgeted $90,639 this year in that category, but by April 1, costs had ballooned to $234,493. 

Acker indicated utility costs for streetlights were flowing into that category but have gone into the protective services account. He chalked up the issue to city hall moving to a new software account. 

Streetlight expenses are roughly $70,000 per month, so more than two months’ worth of expenses — $143,854 — had flowed into the wrong account before city officials redirected them into the proper category.

“We actually pay almost $1 million a year in street lighting for the City of Moose Jaw, so not an insignificant cost,” Acker added. 

Meanwhile, public works split its “Workshop area” into workshop and fleet, with the former on budget — 38 per cent of revenues are spent — while the latter was roughly $600,000 over budget, the first-quarter report said. 

“A good portion of this overage relates to annual costs such as insurance coming into this quarter and a shift in rental charges from hourly to kilometre-based to annual-based charges,” the document stated. “Annual rental charges only come in the fourth quarter of each year. Further analysis and review (are) occurring in the fleet services area.”

Among other things, the report showed that regular transit service revenues and expenses were both at $351,141 by the end of Q1, which was 22 per cent of the $1,573,312 budget. The one area trending above budget was in vehicle maintenance, where $163,193 — or 38 per cent — had been spent out of the budgeted $1,573,312. 

“The increase in vehicle maintenance costs is partly related to fuel costs, which are up compared to 2022, as well as additional vehicle repair costs,” the report noted.

Para-transit service was also seeing similar cost increases in maintenance and fuel costs. Vehicle maintenance costs were at $32,623, which was 33 per cent of the $99,774 budget. 

The next regular council meeting is Monday, June 12. 

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