The City of Penticton's third quarter Financial and Corporate Business Plan update shows inflationary pressures have not pushed the municipality over budget.
Overall revenues are forecasted to increase by $1.16 million due to building permit and licensing revenue trends, and more successful grants than originally anticipated.
Operating expenses are forecasted to decrease by $307k, leaving the amended 2022 annual operating budget at $108.4 million.
The South Okanagan Events Centre is looking at a lower deficit than predicted, due to more concerts and events than anticipated.
Notable new expenses include fuel costs higher than anticipated at $220k, and an increase of $180k for the Sportsplex turf.
"The city continues to manage costs and project deliverables related to supply chain delays, increased lead times and higher material costs," reads an update from the City.
"There are no significant impacts in operating to report at this time."
The capital program is budget at $46 million, with many of the identified projects underway or completed, though some facing delays.
Of the 51 initiatives, 15 are completed and 29 are on track to be by the end of the calendar year. Seven have been delayed.
Those include the ongoing Penticton Creek naturalization project, which was not complete before the fish window closed, and a partnership with the Regional District of Okanagan Similkameen to address sanitary sewer plant residuals and organics waste management, which was halted when the Agricultural Land Commission denied non-farm use of a property on Greyback Mountain Road that was to house the project.
The RDOS is appealing that decision.
A plan to explore city-sponsored monitoring devices for repeat offenders is also delayed, pending a Community Safety Resource Review.
Council will receive the report, which describes the municipality's overall financial position as "strong," at Tuesday's meeting.
Council will also be asked to approve an additional $121k for various City Yards equipment and to make up for inflation increases for parts, with funds coming from the Equipment Replacement Reserve, and $30k more to the Skaha Marina for higher subcontractor costs, coming from the Marina Reserve.