Just how good are the city’s finances right now? According to Kavi Pandoo, the city’s director of corporate services, they’re up to snuff.
During the Governance and Priorities Committee meeting at city hall on Monday, Pandoo talked about 2023’s audited financial statement.
In 2023, the total operating revenues for Yellowknife were $80.5 million, Pandoo said. The financial report notes that the city generates almost half of its operating revenues — 45 per cent — from taxes. Operating expenses for the city were $85.5 million, giving an operating deficit of $5 million.
Not to worry though, necessarily, said Pandoo, as that deficit was absorbed by their existing accumulated surplus balance.
Still, there are some timely issues at play, including last year’s wildfire season, he added.
“The city accrued $10.8 million in wildfire expenses, of which we expect to receive $8.1 million from other orders of governement sometime during this year, hopefully before budget 2025 deliberations.” Pandoo said.
“Other orders of governement” in this case refers to both territorial and federal, Pandoo noted.
Coun. Rob Warburton asked Pandoo how likely it is for the city to get that money back this year.
In response, Pandoo explained nothing has been confirmed, but the city is silently confident, though he admitted his choice of words may come back to bite him.
During his presentation, Pandoo also noted that the city still plans on spending more than $270 million in infastructure by 2033 as per its capital plan.
Whether they meet their goal has yet to be seen, but Pandoo’s words made it sound as if they’re falling behind.
“We are already showing a shortfall of $60.8 million, vis-a-vis this 10-year plan,” Pandoo said, referencing a previous presentation he gave to commitee members in January 2024.
Other points in the financial report included the spike in value when it comes to land held for resale. According to the report, land held for resale is a financial asset and has a current estimated market value of $10.9 million. In 2022, that number was $9.2 million.
Staying on the subject of property, the report also mentions the trouble of asbestos in city-owned buildings.
“The City has recognized an obligation relating to the removal and post-removal care of the asbestos in its buildings,” the report reads. “The estimated costs at Jan. 1, 2023 are $726,000 based on costing model using formal surveys performed by external engineering firm. The buildings have expected useful lives of up to 40 years.”
The matter will be brought forward to the next city council meeting on May 13.