Ponoka approves transfer of 2024 budget surplus

PONOKA -- The Town of Ponoka has approved its 2024 year-end transfers. 

At their meeting this week, Ponoka council explored their budget surplus for last year and agreed to transfer it to their General Benefit reserve. According to town administration -- and in collaboration with local auditors -- the total estimated surplus for 2024 came in at just under $1,700,000. They note that the money will be used to fund future projects for the community. 

The reason behind the large surplus was primarily due to salaries for staff and council coming in $490,000 under budget. This includes their budgeted CAO salary being higher than the actual rate and the town only paying for five councilors. There were also a number of staff vacancies that attributed to the budget surplus, including a four-month vacancy from their GM of Corporate Services and a six-month vacancy from their Common Services and Operations Manager.

Other reasons behind the 2024 surplus include the Town of Ponoka's RCMP contract coming in $400,000 under budget. Town staff also note that the auditors have notified administration that an additional $200,000 surplus will be realized due to year-end audit entries. It's included in the staff report that $100,000 was covered by insurance during the cyber-security incident that took place last year.

The newly approved surplus transfer will be reflected in the 2024 audited financial statements, expected to be presented in April.