Questions raised at Lloydminster City Council, and echoed by residents online, have led to a clearer breakdown of the city’s roughly $7 million surplus.
During Monday’s council discussion, a question about whether overtaxation contributed to the surplus was not directly answered. That prompted reaction from the public and follow-up questions from The Border Pulse.
Administration has now provided additional detail, outlining the surplus as the result of what it described as “a mix” of lower costs and higher-than-expected revenues.
The figures provided account for most, but not all, of the reported surplus.
Where the surplus came from
According to administration, approximately $2.2 million came from lower salaries, wages and benefits.
City staff said this was due to “temporary vacancies across several departments,” which reduced overall staffing costs.
Another $2 million was attributed to reduced contracted services, “mainly due to vacancies within the RCMP,” along with projects coming in under budget or being deferred.
Administration added some of these costs are influenced by factors outside the city’s control, including “weather-related services like snow removal.”
Debt payments accounted for an additional $1 million in savings after the city delayed drawing the final portion of debt for the Cenovus Energy Hub.
Administration said the delay was made “in response to declining interest rates,” and those savings “have been applied to reduce the tax requirement for debt payments in 2026.”
Higher user fees, licences and permits contributed roughly $900,000, driven by “increased use of recreation and culture facilities,” along with activity in transportation, protective services, and planning and development.
Those identified figures total approximately $6.1 million.
The city said the remaining portion of the surplus was due to “a combination of lower utility costs, reduced spending on goods and materials,” fewer façade and building improvement grants, and higher operating grants, but did not provide a specific dollar breakdown for those categories.
Taxation played minimal role
Administration said property taxation did not significantly contribute to the surplus, noting revenues were “within 0.1 per cent of budget.”
Operational savings and revenue increases
Much of the surplus was tied to operational savings, including unfilled positions and lower-than-anticipated service costs.
Administration said “operational savings contributed to the surplus,” alongside some revenue sources exceeding expectations, including user fees, permits and grants.
Final figures will be confirmed once audited financial statements are completed.
Funds moved to reserves
The full $7 million surplus has been transferred into various reserves, as approved by council on March 9.
staff said reserves are used to “plan for future capital needs, respond to unexpected costs, and help maintain stable and predictable tax rates over time.”
“Allocating the surplus to reserves ensures funds are available when needed, without placing additional pressure on future budgets,” administration said.
Community reaction highlights broader concerns
Public reaction following the initial council discussion reflected frustration with the lack of a clear answer in the moment, along with broader concerns around taxation and service levels.
Some residents questioned why a straightforward explanation of the surplus was not provided during council.
Others pointed to concerns about value for money, citing road conditions, infrastructure maintenance and snow clearing, while noting taxes continue to rise year over year.
At the same time, the surplus prompted discussion about priorities. Residents suggested the funds could be directed toward projects such as a new swimming pool, public transit options, road repairs or reducing long-term debt.
Read more: Was Lloydminster over-taxed? Councillor questions $7M surplus
