Greater Sudbury ran a deficit of $2.1 million in this fiscal year, says a report headed to the city's finance and administration committee next week.
The biggest source of the deficit is $1.8 million in snow removal, a result of higher than normal snowfall in the early part of the year.
“Large over expenditures occurred in sanding/salting/plowing, snow removal and sidewalk maintenance,” the report says. “Increased utility costs are contributing to a projected $200,000 over expenditure in street lighting.”
Another major source is at Sudbury Transit and fleet maintenance, which is overbudget by a combined $520,000. Transit alone is over by $300,000, the report said.
“The Transit projected net over expenditures of $300,000 is largely a result of over expenditures in Transit bus repairs and maintenance of $600,000, which includes unexpected repairs to major components and the rise in the price of parts,” the report said.
Declining ridership also led to a shortfall in fare revenue of $240,000. Partially offsetting the budget deficit is a savings of $150,000 in fuel because of lower prices, $110,000 in administrative savings, Handi-Transit costs were $100,000 less than forecast, and utilities and salary costs came in $180,000 underbudget.
Other budget pressures:
-- A drop in investment income of $310,000 because “the bond market so far for 2016 has not been as volatile” as it has been;
-- A drop in OLG slot revenue of $120,000;
-- Decreased parking ticket and other fine revenue of $220,000;
-- Leisure and Recreation Services is overbudget by $420,000, which includes $90,000 over expenditure for ski hills as a result of the later than normal start to the ski season;
-- Community Halls have a projected $150,000 net over expenditure because of increased usage of community halls by nonprofit groups has increased operating costs with no increase in revenue; and,
-- Arenas are projecting a $110,000 net over expenditure as a result of a shortfall in revenues.
Helping the bottom line is a $780,000 under expenditure in the city landfill and recycling programs, largely a result of the landfill contract costing $710,000 less than projected.
The $2.1 million deficit will be funded through the winter maintenance reserve fund ($1.8 million) and $300,000 from two other reserve funds. Councillors will review the report at their meeting Tuesday.
