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The City of Vancouver is relying on an unexpected surplus projection from the Police Department to keep its books in the black after gambling revenue expectations were again lowered, according to a quarterly financial review.

After a May review determined the city would have to dip into its contingency reserve to make up for a $1.6-million shortfall in casino revenue, the latest review shows the city is expecting its casinos to be short by a further $600,000 by the end of the year. A rare budget surplus by the Engineering and Police departments, however, will allow the city to project a $2.66-million overall surplus in the end.

New mayor Sam Sullivan, who in the past has claimed "deeply held" beliefs against gambling, says he's hesitant for his council to help the city's struggling casinos, who face stiff competition from Richmond's splashy River Rock Casino.

"I’ve always been uncomfortable about casino revenues being part of the budget," Sullivan said in an interview. "I know it’s a fact and a reality but I am not interested in doing anything unusual to make gambling more prevalent among our citizens."

But Sullivan's new council will likely be asked to do its part to make city casinos more profitable. The owners of the fledgling Edgewater Casino, for example, at which Sullivan once voted against allowing slot machines, say they're struggling with tedious signage bylaws and a lack of a liquor license on the gaming floor.

When asked if his council would help casinos increase their profits, Sullivan's response was diplomatically cautious.

"I don’t really look towards doing anything to increase gambling in our population," Sullivan answered. "I think gambling opportunities are available and completely accessible and I don’t look to gambling revenues as a critical part of the city’s revenue stream."

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