City of Iqaluit will spend less this year following review

The City of Iqaluit will spend $17.2 million less on capital projects this year, but $171,050 more on operations, following a mid-year review.

The changes are the result of some projects that could not be completed in 2024 being deferred to next year, others that require additional spending, and some expenses that came in higher than expected, the city’s finance committee heard Tuesday night.

Council passed the capital and operating budgets in February, but finance director Peter Tumilty proposed some revisions during Tuesday’s finance committee meeting.

The capital budget, which covers costs such as construction and infrastructure work, originally was $82.4 million. Instead, it will now be $65.2 million, based on Tumilty’s revisions.

Approximately $12 million worth in sewer upgrades and $5.8 million in water supply improvements, will be deferred to next year.

“The capital plan was pretty ambitious,” Tumilty said.

“As we tap the brakes a little bit on it and we’re looking to stay within our lane and in our capacity, the work will need to be prioritized in next year’s budget, and we’ll be looking at trying to come up with a more manageable work program.”

Added revised costs in the capital budget include an extra $1.3 million to complete the city’s waste transfer station, $885,000 in landfill upgrades, $500,000 to complete the Lake Geraldine intake valve replacement and $332,000 for new radios for municipal vehicles.

In the operations budget, which includes costs such as staff salaries, emergency services and maintenance, the city is spending an additional $2.62 million.

That includes $1 million for road maintenance, $225,000 for a change of payroll provider, and $340,000 in long-term water plan and Disaster Mitigation and Adaptation Fund expenses.

The operations budget also includes a $2.5 million net increase in revenue. While the city will bring in $7.9 million more due to the new water rates established this year, with $5.5 million going into capital spending.

The difference between the additional expenses and extra revenue adds $171,050 in spending to the operating budget, which was $58.7 million when council approved it in February.

The city’s operating budget forecasts a $1.9 million surplus.

The revisions discussed in the finance committee meeting were formally approved during a regular council meeting later Tuesday evening.

Finance committee chairperson Coun. Kyle Sheppard spoke positively about the budgets following Tumilty’s presentation.

On the operations side, he noted the change is less than a 10 per cent decrease in the surplus that was originally projected.

On the capital budget, he said the city often approves an $80-million capital plan but actually achieving everything that’s laid out is “aspirational.”

However, on this year’s capital plan, in an interview after the meeting, Sheppard said the city has been able to achieve more than it has in previous years which means a lot of improvements for the community.