Lloydminster City Hall (Kenneth Cheung/battlefordsNOW staff)

By Kenneth Cheung

FINANCIAL REPORT

$35-million surplus, debt delay mark Lloydminster’s mid-year finances

Aug 12, 2025 | 1:33 PM

The City of Lloydminster says it’s in a strong financial position halfway through 2025, with a $35-million surplus on the books and most of the years’s biggest projects still ahead.

The second-quarter financial report, presented to council on Aug. 11, shows the city is deliberately holding off on borrowing for major infrastructure, including the Cenovus Energy Hub, to save on interest costs.

“The city’s cash and short term investments are considerably lower, and they’re about 36 per cent lower compared to last year,” said executive manager of corporate services Adele Wakaruk.

“The reason for this is because the city has deferred $25-million of debt draws for the [Cenovus] Energy Hub by upfronting that cash through working capital.”

The move means cash reserves are temporarily smaller – about $13.3-million less than last year – but Wakaruk said the plan is to draw the debt later in the year when interest rates could be more favourable.

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For taxpayers, much of the surplus is a matter of timing. The city has spent 46 per cent of its $111.1-million operating budget so far, with the largest capital expenses still to come this year.

Capital spending to date about $20-million of the $92-million budget, or 22 per cent.

Of 132 capital projects approved this year, 103 are in progress and 10 are complete. Big-ticket work includes nearly $34-million for the Cenovus Energy Hub, $7.5-million for the northeast effluent line, and $4.6-million for landfill facility upgrades.

Some projects, such as the landfill closure plan, remain on hold while the city waits for outside funding.

Property tax collection are also on pace with historical trends, with over 92 per cent of current-year taxes collected by the due date of July 25.

Reserves are expected to drop from $58.4 million to about $39.3 million by the end of the year, which Wakaruk said was “anticipated and planned for as part of our strategy to fund not only our operating budget but also our capital work.”

The full financial and procurement reports are posted on the city’s website for public review.

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Kenneth Cheung@pattisonmedia.com