CALGARY (660 NEWS) – After cutting spending to avoid being in the red the City of Calgary actually closed last year with a multi-million dollar surplus.
Municipalities in Alberta cannot run deficits, so when the city projected a massive deficit, it cut spending by over $65 million and laid off around 1,200 workers.
Not long after making those cuts, the federal and provincial governments delivered an aid package worth about $200 million.
The result of all this was a surplus of $98 million.
WATCH: Council looks to cut budget, provide tax relief
Budget surpluses generally go into the city’s rainy day fund, but this money is expected to go right into COVID-19 relief.
Meanwhile, the city’s annual report also showed Calgary’s investment portfolio earned them $211 million and that debt has been steadily decreasing between 2016 and 2020.
Last November, City Council passed the 2021 budget which included a property tax freeze and nearly $24 million in cuts to the operating budget.
Cuts to the Calgary police service and transit were included in the budget.
The result was spending decreases of $90 million.