Skip to content

City running $2.45M budget deficit for 2017

Will be paid for through reserve funds; fleet, roads maintenance budget run largest deficit
Tom_Davies_Square
Greater Sudbury ran a deficit of $2.45 million on its more than half a billion dollar budget in 2017, members of finance and administration committee will hear next week. (File)

Greater Sudbury ran a deficit of $2.45 million on its more than half a billion dollar budget in 2017, members of finance and administration committee will hear next week.

The largest single overage is $900,000 in the asset and fleet section. The actual overage is more than $1 million, but it's offset by a $200,000 savings because of staffing vacancies. The blame is attributed to the age of Sudbury's fleet.

“Over expenditures in vehicle/equipment parts and contracted servicing costs are projected to be approximately $940,000,” the report said. “This is largely a result of an aging fleet remaining in service beyond its useful life, welding services, and unforeseen damage to fleet vehicles. 

“Staff have taken steps to mitigate these pressures in the short term, with additional long term solutions to be implemented. Some of these initiatives include an increased focus on inventory management, expanding the breadth of procurement contracts to include parts and supplies, rationalization of vehicles, and others.” 

Another large variance is $850,000 in the roads maintenance department, where bad weather in the first four months of 2017 forced the department to exceed its budget.

“Large over expenditures occurred in sanding/salting/plowing, winter ditching and winter asphalt patching,” the staff report said. 

But there is an existing reserve fund that will cover the amount. The reserve is replenished with surplus funds from years with milder weather when the budget is underspent.

Sudbury Transit spent $680,000 more than forecast.

“Over expenditure in transit bus parts, contracting out, and salaries totaling $630,000 is due to the rise in material prices beyond the rate of inflation, continued unexpected component failures, and unexpected collision and damage repairs,” the report said.

“Over expenditure in contracting out, lubricants, shop supplies and tire replacement totalling $70,000 will be mitigated going forward as fleet services will procure these expenses during 2017-2018 in an attempt to receive lower unit pricing.” 

The city is also receiving $170,000 less in net revenue, in part because the city lost some property assessment appeals. The city also agreed to an unplanned $200,000 donation to the struggling Sudbury Theatre Centre, and revenue from the Slots at Sudbury Downs is $40,000 less than anticipated.

The city also spent $230,000 more than forecast on outside legal advice “resulting from a significant increase in the amount and uniqueness of protracted litigation files, and to cover off vacancies in prosecution,” the report said. 

“In order to address this issue, the 2018 budget will provide additional financial resources for outside legal counsel and an additional prosecutor to accommodate the provincial download of (Provincial Offences Act) Part III prosecutions. In addition, the use of assistant city solicitors will provide backup prosecution services and should mitigate future over expenditures relating to prosecution.”

Sales of dog licenses brought in $90,000 less than anticipated, and overtime costs for animal control bylaw control officers totalled $65,000.

With the winter control reserve fund covering $850,000, the remaining $1.6 million deficit will be paid for from the e Tax Rate Stabilization Reserve and the Capital Financing Reserve Fund. 

The city's finance committee meets Tuesday. See the full report here.


Comments

Verified reader

If you would like to apply to become a verified commenter, please fill out this form.