Lacombe County council set aside some cash for the future as they approved the transfer of $2.5 million in surplus to various reserve accounts. The resolution was passed at the Apr. 23 regular meeting of council.

Councillors heard a presentation by Manager of Finance Wendy Wiebe, who presented them with a request to transfer most of the 2025 surplus funds into certain reserve accounts. “A final step in completing the financial statements is the 2025 surplus allocations to reserves, as directed by council,” stated Wiebe’s report to council.

“Lacombe County ended 2025 positively, realizing an operating surplus of $2,961,215 (net cash surplus for reallocation of $2,532,515), representing 3.66 per cent of the 2025 operating budget, excluding the Alberta Education, Designated Industrial Property, and Lacombe Foundation requisitions.

“This surplus figure includes additional revenue earned of $411,900 on offsite levy balances owed from future development. These funds will be collected as development progresses.

“In 2026, the county hired a consultant to perform an annual review of the sick leave liability. The review resulted in a $16,800 increase in the liability. Historically, increases and decreases in this liability have remained in unrestricted surplus.

“Also netted out of surplus are transfers to the operational reserve of $1,204,500, representing 2025 projects carried over to 2026.”

Wiebe pointed out in her report that variances played a role in Lacombe County’s surplus situation, and she provided councillors with a breakdown. The list included a revenue heading which noted Lacombe County saw $474,120 in revenue from “sales to other government,” $411,900 in “interest income – offsite levy balances” and $155,390 from “return on investments,” among other increases in revenue. Conversely, Lacombe County showed a lengthy decrease in certain expenses, which contributed to the surplus funds available.

Wiebe noted Lacombe County traditionally allocates surplus funds to reserve accounts to be used for various projects in the future. Her report recommended $2.5 million of the total surplus be allocated by council as follows: $1 million to the water/wastewater reserve for future projects, $500,000 to the new pavement reserve for laying new pavement on certain routes, $500,000 to the fire services reserve for future emergency vehicle and equipment purchases, and $500,000 to the recreation capital reserve to replace aging equipment or for a possible regional recreation centre.

Wiebe added the remainder of the 2025 surplus will remain accessible if needed. “The 2025 remaining surplus of $461,216 will remain in the county’s unrestricted surplus,” added Wiebe’s report.

During discussion, Coun. Mark Visscher asked about the term “penalties,” which appeared in the report. Wiebe responded the term referred to penalties on taxes, which were higher due to uncollectible oil and gas industry property taxes.

As councillors discussed the surplus situation, it was noted they felt the proposed transfers to reserves looked balanced and that the municipality is staying the course.

Councillors unanimously approved the staff recommendation for transferring the 2025 surplus, the total of which added up to $2,961,216.