Prince Albert councillors questioned whether an early City surplus reflects real savings, seasonal timing or staffing vacancies during Tuesday’s Executive Committee meeting.
The City’s 2026 first-quarter financial report shows an unaudited surplus of about $2.77 million across all City funds as of March 31.
The report was listed on the consent agenda, where routine items are usually accepted without much discussion. Coun. Tony Head asked to pull the report from the consent agenda so councillors could ask questions about the numbers.
Administration said the $2.77 million surplus is connected to additional revenue and staff vacancies, but cautioned that the first-quarter figure should not be treated as a year-end forecast.
Head said it was good to see the City was not overspending, but said the surplus also raised questions about staffing levels and service delivery.
“My thoughts are, we need the city staff fully complimented in order to provide the services that residents are asking for,” Head said during the meeting.
Head pointed to roadways and snow removal as examples of services residents expect the City to keep up with. The written report also notes a $300,135 snow maintenance budget overage that will be funded through the Snow Management Reserve.
Acting City Manager Jody Boulet said first-quarter surpluses are not unusual because some City costs are seasonal or tied to timing. He said more outdoor work begins in spring and summer, and the second-quarter report should give council a better sense of where staffing and approved work stand.
Chief Financial Officer George Marhall said most of the vacancy savings showing in the report are seasonal.
Marshall said the City is staffing up appropriately, but added that there are a few vacancies within City Hall that could affect services if they stay vacant too long.
Coun. Dawn Kilmer focused on reserve tracking and asked whether the City could show budgeted reserve use earlier in quarterly reports.
Finance staff member Melodie Boulet said many reserve transfers are usually completed closer to year-end, but said the City could look at reporting that information differently in the second quarter.
“Many of those transfers that we do for the reserves are done part of the year end, so we will do them closer to the year end,” Boulet said.
Kilmer said she wanted to see a clearer picture of what was budgeted, what was expected to come from reserves, and how spending is being tracked.
The discussion continued a familiar theme from recent City financial reports, where councillors have tried to separate actual savings from timing, reserve-funded work, vacancies and delayed spending. Mayor Bill Powalinsky also questioned whether the City should move away from straight-line budgeting for some costs if expenses are known to rise and fall seasonally.
Marshall said the City currently prepares the budget using more of a straight-line projection, though it also uses cash flow projections that consider seasonal spending patterns. He said there is no current intent to change the budgeting method.
One of the stronger updates came from the Lake Country Co-op Leisure Centre.
Boulet said early usage numbers are meeting or exceeding targets. He said swimming lessons have already passed 1,000 spots in the first quarter, compared to the old Frank Dunn Pool average of roughly 700 spots over an entire year.
He also said aquatic admissions are running about 15 to 20 percent above expectations, while arena use is meeting early targets.
The update follows earlier council discussion about the Leisure Centre’s expected usage and reserve funding. In a previous budget discussion, Boulet said the City was targeting more than 70,000 aquatic visits in 2026, with a proposed $2 per admission surcharge directed to a reserve for future aquatic facility improvements.
Boulet said the first-quarter numbers are giving the City real operating data that will help with the 2027 budget process.
The report was received as information and filed.
arjun.pillai@paherald.sk.ca
