Photo: File photo

The City of Vernon has a budget surplus.

The City of Vernon has a budget surplus.

In a report that will be presented to council at their regular meeting Monday, staff will provide more information on the surplus.

At the April 14 meeting, council asked for an update on the prior year's unexpended unallocated balance (PYUUB) in reserves.

“The forecasted available balance of $1.4M that has been previously reported takes into consideration 2023 to 2024 budget carryovers, 2024 approved budget amounts from the 2024-2028 Financial plan, and all subsequent 2024 budget amendments at the full budgeted costs,” the report says.

“We started with a balance of $6,154,194 at the end of 2023 and the ending balance after all budgeted items resulted in a projected total $1.4M."

The report says when financial statements are prepared, finance carries forward full budget amounts for projects still in process and processes transfers based on the actual amount of expenditures for completed projects, not on the budgeted amounts. This can result in less being drawn from reserves than what was projected.

“There is $1,227,791 in unused funds. This is predominantly due to two budget commitments that did not require funding from PYUUB,” the report says.

“At the end of 2024, the new balance for PYUUB after actuals and commitments is $2,724,483. If we add in 2024 surplus and commitments, the new consolidated 2023/2024 PYUUB balance is $3,931,343 (subject to final audit review of Financial Statements currently in progress).”