The City of Lloydminster is carrying forward projects from the previous calendar year.
While it’s something that comes up every year, a resolution by council is required to provide administration the authority to complete operating and capital work from the prior year.
“The majority of city projects are budgeted and completed on an annual basis. However, there is instances when those projects need more than one year to be completed. Administration we compile the list of those projects, and we bring them forward for council approval each year so administration has the authority to continue the work,” said Ryan Hill, financial planning and analysis manager with the City of Lloydminster.
In total carryforward, there’s just over $36 million in capital and $569,450 in operating carryforward.
The carryforward projects are supported by revenue allocated in the 2024 budget year. There will be no effect on the 2025 budget requirements as a result.
“That means if they’re carried forward into 2025 there’s no implications to the ‘25 budget from a revenue side. It doesn’t change taxes it doesn’t change utility rates,” said Hill.
There are a number of reasons why projects would get carried into the following year for completion.
“The reasons for this carryforward, I’ve organized it into some similar reasons. External delay is $11.7 million dollars, there’s 17 projects there,” said Hill. “External delay means something outside of the city’s control is holding it up, be it a piece of legislation, maybe we’re waiting on a third party to get us something back. It’s just something that is affecting us. We can’t move forward without them first.”
Change in scope means the final scope of the project has yet to be determined or has been changed from when it was first approved.
Multi-year projects are projects like the Cenovus Energy Hub or the Wastewater Treatment Plant, which take more than a year to complete.
Other reasons for a carryforward may include, under-resourced, delay in funding, supply chain, seasonal clean-up or warranty period.
The city has been working to bring down the yearly value of their carryforward.
“When we took the major projects off last year we were about $18 million and this year we’re just under $14 million, we did make some headway on that. We are trying to lower this number where we can to get the projects done. So, we did make some headway, last two or three years have been skewed number-wise by the Wastewater Treatment Plant and now the Cenovus Energy Hub,” said Dion Pollard, Lloydminster city manager.
Council passed the motion to approve the operating and capital carryforward projects.
Read more: Cenovus Energy Hub completes major work
