BANFF – The Town of Banff has saved close to $1.3 million in wages and benefits during the COVID-19 pandemic.
When the operating budget was reworked in spring due to the pandemic, administration was asked to cut $1 million in wages and benefits, as well as another $270,000 in training, conference and travel expenses throughout the various Town departments.
Officials say the savings came as a result of vacancies and temporary layoffs due to the pandemic, though there was a reduction to wages in some cases.
“We’re happy to state that we achieved our entire wage savings target, with an additional wage savings of another $274,000 over that target,” said Andrea Stuart, the Town of Banff’s finance manager.
“For the targeted training savings, we have an additional $26,000 to still find, but we are confident we can find that during the final quarter of the year.”
The wages and benefits savings were shown in the Town of Banff’s third quarter financial statements, which were presented to Banff council on Monday (Nov. 9).
There were several large budget variances identified up until the end of September, although many of them have offsetting revenues and expenses.
At the end of the day, the Town of Banff is currently forecasting a minor deficit of $6,000.
Mayor Karen Sorensen was happy to see that, given the unprecedented circumstances with COVID-19.
“At the end of third quarter, with a forecasted deficit of $6,064, I think we’ve at this point done a pretty good job of budgeting,” she said.
Some of the larger budget variances include a forecasted decrease in business licence revenue of $3.78 million, which is fully offset, however, by a decrease in the amount paid to Banff Lake Louise Tourism to market the park and its communities.
A projected decrease in consumption charges of $1.43 million is being covered off by decrease in transfers to the water, sewer and resource recovery capital reserves.
The Town saw an increase in government operating grants, with $6 million of that to cover lost revenue and additional expenses related to COVID-19; and the remaining $200,000 to Settlement Support Services and other community service grants.
An increase in capital government grants of $3.2 million will be transferred to capital reserves.
The Town of Banff is predicting to pay $180,000 more than the expected $2 million budget for the RCMP, which is due to higher staffing levels.
Silvio Adamo, the Town of Banff’s director of protective services, said the municipality pays for 14 members, but typically there has been an invoice from the federal government for 13 members.
“Due to the operation of the RCMP, there are always members that are either being seconded, or on leave, or being transferred and coming in, so there’s always a bit of a gap,” he said.
“Historically, we’ve never reached our 14 FTE (full-time equivalent) count on any given year; therefore, we budget for 13 of 14 and that usually aligns well with the actual invoices that come in,” he added.
“This year, we’re seeing that we’re at the 14 FTE and that’s where we’re seeing that overage compared to forecast.”
The financial statements indicate that the Town has spent more than $567,000 on COVID-19 related expenses.
These costs have been covered off in the revised operating budget to deal with COVID, a provincial-federal grant, and the budget stabilization reserve – the municipality’s rainy day account.
