Saguenay Announces $22.2 Million Budget Surplus for 2024
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The city’s financial report highlights increased revenues from land taxes and transfer rights, alongside lower-than-expected expenses.
The city of SAGUENAY has reported a $22.2 million net budgetary surplus for 2024. the financial report was presented at Tuesday’s municipal council meeting.
The surplus is largely attributed to an additional $8 million in revenues from land taxes on new buildings, and $5 million more than anticipated from transfer rights. finance official MICHEL POTVIN also noted an increase of $4 million in income from the Ports of Rio Tinto de la Baie.
Lower-than-expected expenses, especially in snow removal and fuel purchases, also contributed to the surplus.
A portion of the surplus has been allocated to the reserve fund, which facilitated emergency work on Vimy Street, the Richard-Desmeules stadium site, and the decontamination of the rail area.
Approximately $5.5 million, a quarter of the total surplus, will be used to reduce the net debt, which currently stands at $617 million. However, MICHEL POTVIN stated that the debt is effectively $585 million when excluding the installations of Hydro-JonquiĆØre, “which are reimbursed alone,” he clarified.
The city is allocating $3 million towards the creation of a city centre at the pulperie of Chicoutimi.
Additional funds are earmarked for housing construction, the acquisition of 12 buses for the STS, and preparations for potential natural disasters.
Looking ahead to 2025,MICHEL POTVIN anticipates an increase in taxation income. The debt per person is currently $4,145.
The debt is effectively $585 million when excluding the installations of Hydro-JonquiĆØre,”which are reimbursed alone.”
Frequently Asked Questions
- What causes a municipal budget surplus?
- A surplus occurs when a municipality’s revenues exceed its expenditures, often due to higher tax revenues or efficient cost management.
- How can a city use a budget surplus?
- Surpluses can be used to fund infrastructure projects, reduce debt, or increase reserve funds for future needs.
- What is Saguenay planning to do with its 2024 surplus?
- Saguenay plans to allocate funds to its reserve fund, reduce net debt, invest in a city center, and prepare for natural disasters.
