Yk1 district projects a $234,433 deficit
Board asks for feedback on budget
Joseph Tunney
Northern News Services
Friday, June 3, 2016
SOMBA K'E/YELLOWKNIFE
While Yellowknife Education District No. 1 projects a deficit, the finance chair of the board said it is manageable.
At its public ratepayers meeting Monday, with few members of the public in attendance, the Yk1 board of trustees laid out their financial situation.
Terry Brookes, finance chair of the board, said the district is $234,433 in the red but, with revenue and expenditures totals in the tens of millions, this amount of deficit is manageable.
"It's almost a balanced budget," he said. "By the end of the year I wouldn't be surprised if it was balanced."
Tram Do, director of corporate services at the district, said the way the board intends to balance this budget is by withdrawing from its accumulated reserves, a savings account of money collected over the years.
Even with both next year's deficit and this year's deficit - projected to be approximately $700,000 - Do said the district believes the accumulated reserve will remain in the range of 3.5 to 4.5 per cent of the district's total revenue, which sits at $33.5 million.
"I believe at the start of the school year we had $2 million surplus," Do said of the reserve, adding the plan is to draw some money out this year and some next.
The meeting is required by legislation and is a presentation of the district's draft budget with the purpose of seeking public feedback. However, with only a single member of the public in attendance, there was none given.
Brookes said information provided at the meeting would be on the district's website and people can call if they have more questions.
Brookes also noted this budget hasn't been finalized.
"It's not cast in stone yet," he said.
It is scheduled to be finalized in two weeks and must be approved by the education minister.
According to the draft budget, the district gains 80 per cent of its majority revenue from the Department of Education, Culture and Employment. The other 20 per cent is from the property tax the City of Yellowknife collects.
Brookes said some factors in the budget could change, such as how much the district will receive from the Department of Education, Culture and Employment.
"It's never good to give a fixed number because things change," said Do.
