Greater Sudbury is on track to finish the 2016 budget year with a $1.8 million deficit, an amount that will be covered through reserve funds.
A report explaining the reasons behind the shortfall is headed to the city's finance and administration committee Dec. 6.
They include a $210,000 shortfall in provincial offences revenue, mostly money the city receives from parking ticket and related offences.
The deficit is “attributed to the variations in fine amounts ordered by the courts and the volumes and types of tickets issues by enforcement agencies,” the report says. “Staff had put increased emphasis on the collection of defaulted fines in an attempt to reduce the projected variance.
“A recent fine under the Occupational Health and Safety Act in the amount of $1.25 million is being processed through the courts. The fine, less the victim surcharge ($250,000), will result in $1 million being collected by the city. If the fine is paid in 2016 the revenue will form part of the year end position, otherwise the $1 million will be applied to the revenues in 2017. This figure has not been factored into the 2016 year end position.”
Other areas include Sudbury Transit, where budget was $600,000 higher than forecast. The city spent $650,000 more in repairs than they expected, and fare revenue was $220,000 lower than budget, largely because of declining ridership.
Reducing the shortfall is savings in fuel costs ($175,000), savings in Handi-Transit costs ($135,00) and savings in salary and other expenses of $240,000.
Leisure and recreation services is $430,000 overbudget for a few reasons: summer programs came in $70,000 over because of a decrease in user fees and a reduction in grants; ski hills are $90,000 over because of a late start to the season; community halls are $160,000 over because more non-profit groups are using them; and city arenas are $110,000 over because of a decline in revenues.
The roads department is $1.9 million over, mostly due to a $1.8 million overage on winter maintenance costs.
On the positive side, environmental services (landfills, recycling, etc.) is $330,000 under budget largely because of a lower than expected contract award. And the city's long-term care/senior services department is under budget by $200,000, mostly because of additional funding from the province.
The city will balance the books for fiscal 2016 by drawing another $1.8 million from the winter control reserve fund. That fund was set up to accumulate surpluses or pay for shortfalls in winter roads maintenance, depending on the severity of the winter weather.
