The Town of Slave Lake is projecting a modest $12,000 operating surplus for the end of 2026, despite weather-related revenue shifts and rising fuel costs.
During the July 14 committee meeting, administration presented the mid-year operating budget update. Overall year-to-date operating revenues sit at $18.2 million, which represents 71 per cent of the approved $25.9 million annual budget.
A wet start to the summer uniquely impacted municipal finances, particularly within the fire department. The town originally budgeted for $200,000 in provincial wildfire deployment revenue. However, the rainy season drastically reduced local wildfire activity.
“Mother Nature decided to make it rain and squash all of our potential fires,” Chief Financial Officer Roland Schmidt said.
The resulting $200,000 revenue shortfall will be split between the town and the Municipal District of Lesser Slave River.
Rain also caused a noticeable dip in residential water and sewer user fees, as residents did not need to water their lawns. However, this deficit was successfully offset by higher-than-expected bulk water and bulk sewer sales.
On the property tax front, all municipal tax revenue has been invoiced for the year, totalling $10.5 million. Administration highlighted the growing success of the pre-authorized payment plan. Currently, 76 per cent of all tax accounts are paid monthly through the program, a record high. This shift has caused penalty revenues to trend lower than expected, as fewer residents are missing large annual lump-sum payments.
While the overall budget is tracking well, administration noted a few expenditure concerns. The town completely exhausted its snow removal budget following a heavy spring snowfall. Additionally, elevated fuel prices are expected to push the fire services and operations departments over budget by $10,000 and $50,000, respectively.
Despite these specific overages, administration expects to cover the costs through savings in other departments, maintaining the projected $12,000 surplus.
Armaan Khanna
Local Journalism Initiative Reporter