YORKTON — The City of Yorkton ended 2025 with a modest budget surplus, even as it faced rising costs, infrastructure pressures and a challenging winter season, according to a preliminary year-end financial report presented to council on June 22.
The report, prepared by director of finance Ashley Stradeski, shows the city finished the year with a surplus of just under $540,000, a figure that represents less than one per cent of the municipality’s roughly $65 million in annual revenue.
While relatively small, Mayor Aaron Kienle said the result reflects careful management during a volatile year.
“Overall resulting in a pretty good number where some money’s been tucked away in reserves, but it’s a pretty small percentage point of the overall budget,” Kienle said. “So, good work by all of our staff on the budget process.”
Revenue boosts offset departmental deficits
A significant portion of the city’s positive position came from stronger-than-anticipated revenue streams.
Tax revenue exceeded projections, helped by fewer successful assessment appeals and stronger growth than expected. Interest income provided the largest boost, coming in more than $900,000 above budget due to higher returns on short-term investments and bank balances.
Kienle said the strong returns reflect broader economic conditions rather than a long-term shift.
“This is a good news story in that we’re in financial times where our investments are making money, and so that’s really good,” he said. “That money’s being put into reserves for those years where maybe it won’t be like it has been for the last few years.”
Despite the surplus, city departments collectively ran a deficit of more than $438,000, meaning Yorkton relied heavily on revenue performance to finish the year in the black.
Winter and infrastructure costs drive spending
Public Works saw the largest deficit, driven in large part by snow removal. Heavy early snowfall and multiple storms later in the winter pushed costs more than $320,000 over budget, fully depleting the city’s snow removal reserve.
Officials say those costs are becoming harder to predict, with winters varying significantly from year to year.
Additional pressures included increased training costs and expanded work on storm sewer systems tied to road construction.
Infrastructure challenges were also evident in water and sewer operations, where rising material and chemical costs, along with a spike in water main breaks, added strain to the budget.
Mixed results in protective and recreation services
In Protective Services, the fire department posted a deficit due to equipment purchases and a temporary grant-funded position that has yet to be fully reimbursed.
RCMP contract costs, meanwhile, came in under budget due to staffing shortages, a situation officials say is unlikely to continue.
Recreation and community services saw mixed results. Increased use of facilities such as arenas and the city golf course brought in additional revenue, but those gains were offset by higher operating and maintenance costs.
At the Gallagher Centre, aging infrastructure contributed to more than $230,000 in repair-related deficits. Parks services also saw higher costs following a longer growing season that required additional maintenance and contracted work.
Environmental services surplus earmarked for future
Environmental services generated a $5 million surplus, largely from water and sewer operations. However, officials emphasized those funds are not discretionary.
Instead, the revenue will be directed into reserves for major future projects, including wastewater treatment upgrades and other long-term infrastructure needs.
Reserves and outlook
Administration is recommending that part of the surplus be allocated to reserves for the airport, economic development initiatives and municipal facilities.
After those transfers, approximately $315,000 will be added to the city’s rainy-day fund, which is expected to remain above $3 million even with planned withdrawals in 2026.
Kienle said the city budgets conservatively for interest revenue and benefited from stronger-than-expected returns.
“We do budget for the interest that is coming in, and we’ve just been fortunate to have more than what we budgeted for,” he said. “Typically, that’s a pretty conservative number that we start with, and then we’ve just been fortunate to see additional there.”
He added that municipalities continue to look for ways to diversify revenue, though property taxes, utilities and fees remain the main sources.
“All municipalities are always looking for other forms of revenue, because most of our money comes from fees, utilities and obviously taxation,” Kienle said.
Final audit pending
The figures remain preliminary, with audited financial statements expected later this summer.
Kienle said the year ultimately reflects a balance between higher costs and stronger revenue.
“There were things that cost a little bit more and some things that we spent a little bit less,” he said. “Overall, it still landed us in a positive position.”
Editor’s note: This story has been edited to reflect the mayor’s correct name.
